New York joins 16-state lawsuit over federal EV cash

ALBANY, N.Y. (NEXSTAR) — New York Attorney General Letitia James sued the U.S. Department of Transportation on May 7 for freezing millions earmarked for electric vehicle charging. According to the lawsuit, the Federal Highway Administration revoked New York’s approved EV plan to snatch away about $120 million that Congress had already approved.

James and the attorneys general of 16 other states and the District of Columbia filed the case—which you can read at the bottom of this story—in federal court in Seattle. It argued that President Donald Trump's DOT lacked legal authority to pull the money, which Congress set aside under the 2021 Infrastructure Investment and Jobs Act.

Trump's "Unleashing American Energy" executive order told all agencies to stop paying out funds from the IIJA and the 2022 Inflation Reduction Act, “including but not limited to funds for electric vehicle charging stations made available through the National Electric Vehicle Infrastructure Formula Program.” In the order, the president argues that expensive regulations increase energy prices, stifle job growth, and damage national security. It directed officials to eliminate the “electric vehicle (EV) mandate” and promote “true consumer choice, which is essential for economic growth and innovation.”

Essentially, the White House argued that fossil fuel alternatives are unreliable and unaffordable. So, on February 6, FHWA sent a letter—which you can read at the bottom of this story—to every state transportation chief saying it had “rescinded” NEVI guidance from June 11, 2024. It warned that “effective immediately, no new obligations may occur under the NEVI Formula Program until the updated final NEVI Formula Program Guidance is issued and new state plans are submitted and approved.”

The lawsuit asked the court to declare the freeze unconstitutional and unlawful under the Administrative Procedure Act. The attorneys general also wants the court to order DOT to resume approvals and restore funding and block any future attempts to withhold such funds without following the law.

“The administration’s illegal action is a roadblock to New York’s progress to build [EV] infrastructure and attack the climate change crisis,” James said in a statement on Wednesday. “It is disappointing that the president would decimate this bipartisan legislation and jeopardize a dozen electric vehicle projects across New York.”

The lawsuit claimed that the federal government has to distribute the NEVI funds to any state with an approved EV charging plan, without any added review or agency discretion. After all, the states say they planned their EV charging networks to comply with federal laws mitigating pollution and climate change. And it argues that DOT ignored federal rules requiring at least 90 days’ notice and a chance to let states fix any problems before losing access to that money.

Congress set aside $5 billion for NEVI in the IIJA, with each state's share fixed by that NEVI formula. New York’s portion totaled about $175 million over five years, with $138 million for 2022 to 2025 already approved by the feds now frozen. New York paid $17.7 million as of April 28 for 11 fast-charging sites along highways.

And another 12 stations already in development by the New York State Energy Research and Development Authority in New York City, the Hudson Valley, Upstate, and on Long Island add up to $50 million. Those projects can't proceed without that money. If the court sides with the states, work on those charging stations could resume.

New York's NEVI dollars are supposed to reduce smog, protect public health by cutting cancer-causing emissions, and meet the growing demand for EVs, James said. And “New York State is resolute in challenging the Trump Administration’s decisions that undermine a more efficient transportation system, which includes the nationwide buildout of an interconnected network of electric vehicle chargers needed to meet growing consumer demand,” said NYSERDA President and CEO Doreen Harris in a statement.

Take a look at the FHWA letter below:

And here's the lawsuit from Arizona, California, Colorado, Delaware, Hawai’i, Illinois, Maryland, Massachusetts, Minnesota, New Mexico, New Jersey, Oregon, Rhode Island, Washington, Wisconsin, and Puerto Rico and Washington, D.C:

Related video—NY adds $30M in rebates for electric vehicles: