Seventeen states, led by California, Colorado, and Washington, are suing the Trump administration for withholding $5 billion in federal funds allocated for electric vehicle (EV) charging infrastructure under President Biden's Bipartisan Infrastructure Law.
The lawsuit challenges the Federal Highway Administration's authority to halt the funding, arguing that Congress holds that authority.
The Trump administration, in February 2025, directed states to cease spending these funds as part of a broader effort to reverse environmental policies implemented during the Biden presidency. An estimated $3.3 billion of the $5 billion total had already been made available to the states.
States involved in the lawsuit argue that the blocked funds were crucial for shaping the future of transportation and that the Trump administration's actions are short-sighted and illegal. Several states, including New York, have already received funds, with some being withheld.
The withholding of funds is impacting the ongoing construction of EV charging infrastructure, potentially hindering the growth of the EV market in the U.S. The action also threatens thousands of jobs, according to California Governor Gavin Newsom.
This lawsuit is part of a broader pattern of the Trump administration rolling back environmental regulations and policies. Other actions include withdrawing from the Paris Climate Agreement and reversing targets for EV adoption.