Trump Pulls the Plug on $5 Billion EV Charger Plan – Even Tesla's $31 Million is on Hold

Donald Trump just threw a wrench into the country's EV charging network. His administration is freezing the $5 billion National Electric Vehicle Infrastructure (NEVI) program, leaving Tesla and other automakers in limbo.

This move temporarily suspends $31 million in Tesla's federal funding. It could be a big hit to EV adoption in the U.S., where charging stations are still scarce.

The EV Charger Freeze

The Department of Transportation sent out a memo on Thursday informing states that the NEVI program is on hold until further notice. There have been no new approvals or funding, and there is no clarity on when things might resume.

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As reported by Business Insider, the memo said officials are reviewing the program's policies and will release new guidance this spring. But for now? It's a waiting game.

This suspension doesn't just hurt Tesla. It disrupts plans in multiple states that were relying on this funding to build much-needed EV chargers.

Trump's War on EVs?

The move is part of a bigger effort by Trump to dismantle federal support for electric vehicles. He has clarified that he wants to kill the so-called "EV mandate." And this is just the beginning.

His administration is also considering scrapping the $7,500 EV tax credit – a major incentive that helps drive Tesla sales.

Ironically, Elon Musk supports the decision. He called eliminating the tax credit a "long-term" win for Tesla but warned it would "devastate" competitors.

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Tesla's $31 Million in Limbo

Tesla has been one of NEVI's biggest beneficiaries, ranking third in total funding. The company received $31 million in grants to expand its charging network.

Now? That cash is frozen.

Tesla didn't comment on the decision, but given Musk's closeness with Trump, it's unclear how much he will oppose the changes.

What Happens Next?

The uncertainty is hitting small businesses and local communities, too.

Josh Cohen, head of policy at EV startup SWTCH, told Business Insider that his company received an email three days after Trump's inauguration saying its $1 million project was on hold.

“It's creating a lot of uncertainty for families and small businesses,” Cohen said.

Even industry groups that had criticized NEVI are uneasy. A spokesperson for the Charge Ahead Partnership admitted to Business Insider that the program wasn't perfect but said it was "a step in the right direction."

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The Bottom Line

Trump's decision is a major shakeup for EV infrastructure. Tesla and other automakers are now waiting to see what's next.

If the $7,500 tax credit disappears and NEVI funding stays frozen, the future of EV adoption in the U.S. could be very different.

For now, it's all on hold.

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