Federal Court Rules Administration Unlawfully Suspended $5 Billion EV Charging Program
Washington, Saturday, 24 January 2026.
A federal judge declared the administration’s freeze on $5 billion in infrastructure capital unlawful, permanently barring the Department of Transportation from withholding funds intended for the national charging network.
Judicial Rebuke of Executive Overreach
On Friday, January 23, 2026, U.S. District Judge Tana Lin issued a decisive ruling from Seattle, concluding that the Department of Transportation (DOT) acted outside its legal authority when it froze the National Electric Vehicle Infrastructure (NEVI) Formula Program [1][2]. The court found that the administration, under the direction of Transportation Secretary Sean Duffy, had “yanked the NEVI Formula Program’s cord out of the outlet” without adhering to the statutory requirements of administrative law [1]. Judge Lin characterized the suspension as “arbitrary and capricious,” noting that the defendants had defied the will of Congress by withholding funds in a manner not authorized by the Infrastructure Investment and Jobs Act (IIJA) of 2021 [1][3]. This final judgment marks a significant legal victory for the plaintiffs—a coalition of 20 Democratic-led states and the District of Columbia—who argued that the executive branch could not unilaterally dismantle a congressionally mandated spending program [1][2].
Timeline of Regulatory Friction
The legal dispute traces back to February 2025, shortly after Secretary Duffy assumed office, when the DOT suspended the $5 billion program originally signed into law by President Joe Biden [1][2]. The Trump administration framed the move as a temporary pause while it pursued policies favoring gas-powered vehicles and reducing incentives for electric automakers [1][2]. In response, states led by California, Colorado, and Washington filed suit in May 2025, alleging that billions of dollars in awarded funds were being wrongfully withheld [1][2]. The conflict escalated in June 2025 when the court issued a preliminary injunction forcing the release of funds to 14 states [3][4]. The January 23 ruling expands these protections, permanently barring the DOT from interfering with disbursements or revoking approved implementation plans across all 50 states [3][4].
Economic Stakes and Industry Stability
The financial implications of this ruling are substantial for state budgets and the broader construction sector. The NEVI program dedicates $5 billion to assisting states in building out a national charging network, a critical component for the adoption of electric vehicles [3]. For specific context on the capital at risk, California alone faced uncertainty regarding over $177 million in related infrastructure awards prior to this judgment [4]. Beyond immediate funding, the program has influenced industry standards; the NEVI initiative was instrumental in the widespread adoption of the North American Charging Standard (NACS), which has since become the official standard for almost every vehicle manufacturer [3]. By stabilizing this funding stream, the court has provided necessary certainty for infrastructure firms and automakers planning long-term capital projects [4].
Legislative Countermeasures on the Horizon
While the judicial branch has settled the question of the initial suspension, the political battle over EV funding is shifting back to the legislative arena. The U.S. Senate is scheduled to consider legislation next week—the week of January 26, 2026—that would redirect $879 million in funds previously approved for the EV charging network toward other infrastructure priorities [1][3]. This bill, which has already cleared the U.S. House of Representatives, represents a continued effort by the Republican leadership to curtail federal spending on electric mobility [1]. Despite this looming legislative threat, environmental groups and state officials have celebrated the court’s decision as a reinforcement of democratic norms. Mike Faulk, a spokesperson for Washington State Attorney General Nick Brown, described the order as a “resounding win for the rule of law and for smart investment in our clean energy future” [1][2].