Michigan Challenges Federal Suspension of EV Charger Funding

Michigan Takes Legal Action Against Federal EV Charger Funding Suspension

In a significant move, Michigan has joined a multi-state coalition challenging the federal government's recent halt of funding intended for electric vehicle (EV) charging infrastructure. This lawsuit represents a growing concern among states about the implications of the federal government's decision to pause these essential financial resources.

The federal funding at the center of this controversy was initially allocated under the Infrastructure Investment and Jobs Act during President Joe Biden's administration four years ago. However, following the transition to President Donald Trump, an executive order led to a suspension of these funds to the states, raising questions about the continuity of critical infrastructure development.

Michigan's involvement in the lawsuit underscores the state's frustration over the loss of approximately $29 million, which was earmarked for enhancing its EV infrastructure as part of its strategic plan. Attorney General Dana Nessel criticized the previous administration's actions, stating, “The Trump Administration’s decision to unilaterally cut off these funds is not only unlawful – it jeopardizes Michigan’s EV infrastructure, while threatening our economic growth and environmental progress.”

The federal suspension involved the cancellation of approvals that states needed under the National Electric Vehicle Infrastructure Formula Program. The U.S. Department of Transportation indicated that this pause was necessary for further review.

In defense of the pause, Transportation Secretary Sean P. Duffy expressed that the “Biden-Buttigieg Administration failed miserably to deliver EV chargers despite their promises.” He asserted that the authority to issue program guidance meant ensuring funds are used effectively, claiming this measures, “that’s exactly what we are doing.”

Duffy's critique of the states focused on their pace in implementing the EV charging program. However, Ingrid Malmgren, senior policy director at Plug In America, countered these points by noting that establishing a new regulatory framework was necessary before states could access the funds. “It wasn’t so much that states aren’t interested in using this money and that they were dragging their feet. It was much more that there was a lot of ground work to lay before they could start spending the money and actually putting chargers in the ground,” she explained.

Malmgren highlighted the significant role of the funding in advancing EV charging accessibility, particularly in underserved regions. She stated, “Very rural areas, small communities where there wouldn’t be a lot of traffic and it didn’t make a lot of business sense to invest in these chargers, there was still funding available so that this charging network could be very comprehensive and complete.”

The legal challenge began uniting 16 states and Washington D.C. in May, culminating in a preliminary injunction against the funding freeze imposed by the Trump administration in late June. Michigan recently joined this coalition, becoming one of four additional states involved in the lawsuit.

Already, Michigan has initiated contracts for the first phase of charging stations, with plans for an additional 48 stations also underway. However, state officials warn that the suspension of funding could jeopardize the installation of up to 65 more chargers in a third planned phase, further stalling the development of vital EV infrastructure.