Federal Judge Rules DOT Illegally Withheld NEVI Funds

January 29, 2026

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Key Takeaways

  • A federal judge ruled that USDOT and FHWA unlawfully withheld NEVI EV charging funds without following required administrative procedures.
  • The court found the agencies lacked authority to suspend or revoke approved state NEVI plans outside the framework established by Congress.
  • The ruling reinforces that NEVI funding, created under the Infrastructure Investment and Jobs Act, must be distributed according to statutory requirements.
  • USDOT and FHWA are barred from withholding NEVI funds for reasons not expressly authorized by federal law.

A federal judge has ruled that the U.S. Department of Transportation (DOT) and the Federal Highway Administration (FHWA) unlawfully withheld nearly $1 billion in funding for electric vehicle (EV) charging infrastructure, overturning a suspension of the National Electric Vehicle Infrastructure (NEVI) Formula Program imposed by DOT earlier this year.

In a summary judgment order issued January 23, 2026, U.S. District Court Judge Tana Lin found that DOT and FHWA acted “outside the law” when they abruptly halted the NEVI program after the January 2025 change in presidential administrations. The court held that the agencies failed to follow procedural requirements under the Administrative Procedure Act (APA) before revoking states’ approved NEVI plans and withholding funds that Congress appropriated.

The NEVI Formula Program was established by the 2021 Infrastructure Investment and Jobs Act (IIJA), which provided $5 billion for states to build out a nationwide electric vehicle charging network. Under the law, DOT, through FHWA, must distribute these “formula” funds to states according to statutorily prescribed requirements.

After President Trump’s inauguration in January 2025, an executive order directed federal agencies to pause disbursements of certain IIJA funds, including for EV charging. Subsequently, FHWA rescinded prior NEVI guidance, suspended review of state deployment plans, and ordered states to resubmit plans under new standards, effectively freezing approval of new obligations and access to funds.

In their lawsuit, 20 states and the District of Columbia, represented by Washington, California, and Colorado, argued that DOT lacked authority to revoke approvals or withhold funds under the statute. The court agreed, concluding that DOT’s actions disregarded the IIJA’s mandatory funding distribution provisions and procedural safeguards.

Judge Lin’s order bars DOT and FHWA from suspending or revoking approved state plans or withholding NEVI funds for reasons not expressly authorized by Congress. The ruling also reinforces that the program’s statutory framework must be followed, and that federal agencies cannot unilaterally rewrite requirements without complying with the APA.

The legal challenge included not only the states but also seven environmental organizations acting as plaintiff-intervenors. Together they asserted that the freeze on NEVI funds disrupted ongoing and planned EV infrastructure projects and imposed tangible harms on implementation efforts.

Attorney General Nick Brown of Washington, one of the lead state attorneys general on the case, emphasized the need for reliable charging infrastructure to support EV adoption, saying his team “fought so hard to make sure the federal government follows the law and provides the funding that Congress intended.”

A copy of the judge’s summary judgment order is publicly available and was referenced in the attorney general’s office announcement.

Q&A

What is the NEVI program?

The National Electric Vehicle Infrastructure (NEVI) Formula Program was created by the Infrastructure Investment and Jobs Act to fund a nationwide EV charging network, with $5 billion allocated for distribution to states.

What did the court decide?

The court ruled that USDOT and FHWA acted unlawfully when they suspended approved state NEVI plans and withheld funds without complying with the Administrative Procedure Act.

Why was the funding withheld?

After a January 2025 executive order, FHWA rescinded prior NEVI guidance and required states to resubmit plans under new standards, effectively freezing access to funds.

What does the ruling require DOT to do?

USDOT and FHWA may not suspend or revoke approved NEVI plans or withhold funds unless explicitly authorized by Congress and carried out through proper rulemaking procedures.

Does the ruling change NEVI law or funding levels?

No. The court’s decision enforces existing statutory requirements and does not modify the program’s funding levels or underlying legislation.