- US court declares Trump’s NEVI funding freeze unlawful.
- California leads lawsuit, securing $379 million in funds.
- Permanent injunction mandates immediate release of NEVI funds.
A federal judge ruled on January 23, 2026, that the Trump administration’s freezing of $5 billion in electric vehicle funds was unlawful, mandating funds’ release nationwide.
This ruling highlights legal battles over clean energy funding, impacting infrastructure development and political dynamics, as states move forward with electric vehicle projects.
A federal judge ruled on January 23, 2026, that the U.S. Department of Transportation under the Trump administration unlawfully froze $5 billion in National Electric Vehicle Infrastructure (NEVI) funds. This order permanently bars further interference with these funds.
The lawsuit, led by California along with 16 other states and several nonprofits, challenged the funding freeze. California officials played a significant role, with Attorney General Rob Bonta emphasizing the state’s success in securing $379 million.
The court’s decision affects electric vehicle projects across all 50 states, ensuring they receive the much-needed funds. This ruling supports the expansion of EV infrastructure, aligning with growing environmental and transport needs.
By restoring access to these funds, states can advance their clean energy initiatives. The ruling highlights political shifts in climate policy and calls into question future regulatory actions concerning federally allocated funds.
The decision could influence how future infrastructure funds are managed and underscore the importance of adherence to use-of-fund regulations. Immediate financial impacts are expected on EV infrastructure planning and deployment nationwide.
“After several attempts by the Trump Administration to unlawfully block funding for electric vehicle infrastructure, we have secured a full victory in court, guaranteeing $379 million in funding that will help ensure Californians can access clean, affordable transportation.” – Rob Bonta, Attorney General, California
