California, alongside 16 other states, has filed a federal lawsuit against the Trump administration for allegedly unlawfully withholding $5 billion in infrastructure funds intended for electric vehicle (EV) charging stations.

The lawsuit underscores concerns that only Congress has the authority to rescind funding previously approved for the National Electric Vehicle Infrastructure (NEVI) program established in 2022.

This legal action is part of a broader context where the Trump administration is perceived to be rolling back environmental policies, including withdrawing from the Paris climate agreement and reversing emission targets.

Despite challenges in consumer acceptance and infrastructure development, the EV market is growing, with electric vehicles comprising about 8% of new car sales in the U.S. last year.

Experts anticipate that the EV charging infrastructure will continue to develop as automakers remain committed to electrification goals, despite uncertainties surrounding federal funding.

The rollout of the EV charging program, which aims to establish infrastructure along highways before addressing urban and rural gaps, has faced delays due to contracting issues and permitting challenges.

Without the federal funding, the construction of EV charging stations in critical locations could experience significant delays or cancellations, threatening jobs and economic growth.

California's Attorney General Rob Bonta emphasized the state's commitment to clean transportation and the necessity of federal support for EV infrastructure amid federal overreach.

The Federal Highway Administration had previously approved over 150 state EV charging plans, which are now jeopardized by the funding freeze imposed by the Trump administration.

Defendants in the lawsuit include the U.S. Department of Transportation, Secretary Sean Duffy, and the Federal Highway Administration, led by Acting Administrator Gloria Shepherd.

The lawsuit highlights that states will face additional costs and burdens in developing new plans for EV funding, even with new federal guidance.

While some states have received reimbursements for their EV projects under Biden-era funding, others have had to pause their plans due to the funding stoppage, leading to delays in charger installations.