President Donald Trump has signed an executive order to halt the disbursement of funds from key programs established under the Inflation Reduction Act and the Bipartisan Infrastructure Law. This decision directly affects the National Electric Vehicle Infrastructure (NEVI) Formula Program and the Charging and Fueling Infrastructure (CFI) grant program. These programs have been instrumental in supporting Tesla's efforts to expand its charging infrastructure across the United States.
Tesla has significantly benefited from both NEVI and CFI programs. The electric vehicle giant secured a $100 million award from the CFI program to develop charging infrastructure for heavy-duty electric trucks in Illinois. Additionally, Tesla has received grants from the NEVI program, which has allocated nearly $2 billion over two years. By mid-2024, Tesla is projected to have secured around 13% of all NEVI awards. These funds are pivotal in expanding Tesla's Supercharger network, now accessible to nearly all competing electric vehicles.
The CFI program was poised to fund Tesla's ambitious truck-charging corridor between northern California and southern Texas. However, the application has faced multiple rejections. Tesla initially aimed to obtain approximately $40 million from an original funding request of $126 million.
The executive order mandates federal agencies to conduct a thorough review of their contracts within 90 days, submitting these findings to the Office of Management and Budget (OMB) and the National Economic Council (NEC). Martin Lockman, a fellow at Columbia Law School’s Sabin Center for Climate Change Law, expressed concerns regarding the potential implications of Trump's order.
“There’s a lot of wiggle room here, and the Trump administration will certainly do everything that it can to delay spending under these bills,” – Martin Lockman
Lockman highlighted the possibility that the Trump administration's actions could hinder or even halt future funding from these programs. He cautioned that such pressure on agencies might lead them to breach existing contracts and potentially violate the laws that established these funding mechanisms.
“People who have contracts today have rights under those contracts, and the President can’t take them away,” – Martin Lockman
The administration's proposed legal battles also include contesting the Impoundment Control Act, which restricts presidential power to withhold Congress-approved funds. Despite these challenges, it remains uncertain whether Trump can legally halt funding for contracts already in place.
Tesla's mission, as stated by CEO Elon Musk, is to "accelerate the transition to sustainable energy." Any delay or obstruction in funding could pose significant hurdles to achieving this goal. Lockman noted that if the new administration forces contract disputes into court, it would create substantial obstacles for developing EV infrastructure.
“If the new administration wants to make people fight for their contracts in court, that would certainly be a huge barrier to building EV infrastructure,” – Martin Lockman
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