The Trump administration has put a hold on a federal clean energy initiative aimed at expanding the U.S. electric vehicle (EV) charging network. This decision puts billions in allocated state funding for current and future projects on hold.

On Thursday, the Federal Highway Administration (FHWA) informed state transportation directors that the National Electric Vehicle Infrastructure (NEVI) program is under review. While existing contracts will be honored, no new funding commitments will be made. This decision delays about $3 billion in expected funding for future charging station projects. The FHWA plans to update the program to align with new Department of Transportation priorities, with a draft of the revised policies expected in the spring.

Established under the 2021 bipartisan Infrastructure Investment and Jobs Act, the NEVI program aimed to create a national EV charging network, placing stations every 50 miles along highways. Despite some challenges, such as competition from utilities and inconsistent charger maintenance, the program spurred investment in fast-charging stations at key locations.

So far, 56 charging stations are operational, with more than 900 sites awarded funding, many of which are under construction. Experts believe lawsuits from states may challenge the FHWA’s authority to halt the program, potentially leading to court battles.

President Trump has consistently opposed EV incentives, vowing to prioritize fossil fuel production. On Inauguration Day, he declared a “national energy emergency” to expand oil drilling, emphasizing the country’s reliance on domestic energy. Tesla, a key recipient of NEVI funding, has received approximately $31 million in awards, with its CEO Elon Musk serving as a key adviser to Trump.