Trump criticizes the funding programs for electric vehicle charging stations that benefit Tesla.

President Donald Trump is trying to curb funding allocated for electric vehicle (EV) charging infrastructure through two programs that have benefited Tesla. This move highlights a conflict between the political interests of Elon Musk and the goals of his company to promote sustainable energy. While it is uncertain whether this strategy will succeed, if realized, Tesla could lose access to two funding sources it has utilized over the past two years to expand its EV charging network.

On his first day of his second term, Trump signed a series of executive orders, including one that directs all agencies to immediately suspend the distribution of funds from programs established by the Inflation Reduction Act and the Bipartisan Infrastructure Law. In his statement, he specifically mentions the suspension of funds for electric vehicle charging stations, such as those available through the National Electric Vehicle Infrastructure (NEVI) Formula Program and the Charging and Fueling Infrastructure (CFI) grant program.

Agencies will be required to submit a review of their "processes, policies, and programs" for issuing grants and other disbursements within 90 days. Furthermore, they will only be able to distribute more funds if the Director of the Office of Management and Budget (OMB) and the Assistant to the President for Economic Policy determine that such distributions are consistent with the review recommendations adopted.

Musk has repeatedly stated that Tesla's mission is to "accelerate the transition to sustainable energy." However, his collaboration with Trump's second administration could complicate that objective, as significant cuts to sustainable energy policies were implemented on the first day of his administration. Trump has already signed orders to halt federal leases for offshore wind development, withdrew the U.S. from the Paris climate agreement, and seeks to roll back various electric vehicle policies of the Biden administration.

Recently, Tesla was part of a group that received a $100 million grant from the CFI program to develop charging infrastructure for electric trucks in Illinois. The company expected to obtain approximately $40 million from an original funding request of $126 million. It has also sought additional funding from the same program to develop a charging corridor for trucks between Northern California and Southern Texas, but this request has been rejected multiple times.

Although the CFI award in Illinois represents a small part of the nearly $2 billion the Department of Transportation has allocated over the past two years, Tesla has received a larger share of grants from the NEVI program, which distributes smaller amounts to states for them to offer their own grants. By mid-2024, Tesla had received nearly 13% of all NEVI awards.

Martin Lockman, a researcher at Columbia University's Sabin Center for Climate Change Law, warns that Trump could slow down or halt future disbursements from these programs, especially if his administration succeeds in litigation regarding the Impoundment Control Act, which limits the president's ability to stop spending that has been approved by Congress. It is unclear whether Trump could legally prevent funding for grants already under contract, as beneficiaries have rights that cannot be rescinded. However, if agencies feel pressured by Trump, they might breach the terms of those contracts and refuse to release the funds.

Should this occur, companies or state and local entities that received NEVI or CFI awards would have to fight to enforce those contracts, posing a significant obstacle to building electric vehicle charging infrastructure.