Feature | Electric Avenue
To freeze or not to freeze How states and municipalities are filling the gaps where federal EV funding has been withdrawn By Maura Keller, EA Contributing Writer “The current freeze primarily impacts federally In February, the U.S. Dept. of Transportation (DOT) issued a directive to all state transportation departments, placing a temporary freeze on new supported public charging networks, key for urban project obligations under the $7.5 billion National Electric Vehicle Infra- and long-distance travel. However, since most EV structure (NEVI) Program, which was authorized by the Infrastructure drivers – nearly 80% – charge at home, this freeze Investment and Jobs Act (IIJA). The DOT indicated that no new projects doesn’t affect them directly, suggesting widespread could move forward until updated guidance is issued in adoption may hold steady,” Munson says. late 2025. “Emerging sectors like public transit and This freeze has created significant uncertainty at commercial fleets could face delays, but the state level, especially regarding reimbursement for state-derived funding might cushion the already-approved projects. As a result, several states blow. This resilience indicates that states – such as Arkansas, South Carolina, Vermont, and Michican adapt, leveraging alternative resources gan – have paused their NEVI programs entirely to avoid to maintain EV momentum despite federal financial exposure. Other states have chosen to continue fluctuations.” project development under the assumption that a proMunson adds that the federal funding longed freeze would ultimately conflict with the statutory freeze will likely slow the rollout of pubKen Munson intent of the IIJA. lic EV charging infrastructure, particularly Dr. Pragathi Darapaneni, a materials scientist and battery technology affecting public transit, commercial fleets, and multiexpert with 14 years of experience in EV innovation, including collabora- family housing residents reliant on these stations. tions with Honda, Ford, GM, and Toyota, keeps a close eye on the policy These delays may hinder adoption in these groups, and infrastructure side of EV adoption – especially how local govern- while grid upgrades needed for broader EV use could ments and utilities are stepping in to keep momentum going. also stall unless they are locally funded. Residential “The federal funding freeze has created a ripple effect of uncertainty, charging, dominant among current EV owners, will particularly around large-scale charging infra- likely remain largely untouched. structure projects that were relying on NEVI “Private investments and state efforts may soften funds,” Darapaneni says. “Many state-led EV the impact, though gaps in underserved communities initiatives were structured around expected could persist,” Munson says. “The industry will likely federal disbursements, so the halt has forced face short-term hurdles, but local and private initiautilities and local governments to reassess time tives might limit long-term disruption.” lines and find alternative funding mechanisms. While it hasn’t stopped momentum entirely, it States’ responses has caused delays in deployment and a shift in priorities toward more localized, independently Lara Croushore, head of climate at SecondMuse, says Dr. Pragathi Darapaneni funded programs.” the status of state EV infrastructure projects amidst Darapaneni says the immediate impact of the funding freeze is hesita- the funding freeze varies wildly depending on location – particularly among stakeholders in infrastructure development. tion. Some states, like New York, have focused efforts EV adoption is strongly tied to consumer confidence in charging acces- on delivering funds to this sector, as can be seen in the $60 million funding for EV charging infrastrucsibility. “Without clear funding paths, the rollout of public fast-charging sta- ture from the NY Green Bank, tions slows, which can affect both consumer demand and the speed at as well as nearly $3 million which automakers scale up EV production,” Darapaneni says. “It also in funding from the New creates strain on state and utility partnerships that were depending on York State Energy Research federal matches to make large projects viable.” and Development Authority According to Ken Munson, CEO and founder of Rhythmos.io, federal for shared electric transporfunding for clean tech, like EV projects, has historically shifted with tation projects in the state. political priorities. State-level programs, often funded through public California has also taken utility commissions and energy agencies, typically remain insulated steps to continue progress, Lara Croushore from these federal changes. with $55 million in funding 52 ELECTRICAL APPARATUS | JUNE 2025
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5/9/2025 8:06:36 AM