NEVI Program Pause Won’t Derail EV Charging Expansion

The U.S. Department of Transportation has moved to halt the $5 billion National Electric Vehicle Infrastructure (NEVI) program, forcing states to cancel their plans for building electric vehicle (EV) charging stations.

However, it seems unlikely this change in policy will have a major impact on the nation’s growing EV charging network. Despite the temporary pause, ongoing private and public sector efforts, along with previous infrastructure investments, are expected to continue expanding the availability of charging stations across the country.

The Federal Highway Administration (FHWA) directed state transportation directors to “decertify” their plans, which had already been used to begin the construction of more than 30 charging stations, with many more in progress.

In an interview with PYMNTS, Michael Schulman, chief investment officer at Running Point Capital Advisors, noted as of the fourth quarter of 2024, the NEVI program had created 126 public charging ports across 31 stations in nine states.

“Although there are over 3,500 more fast charging ports across over 890 charging stations planned, the timeline and cost is yet to be determined,” he said. “As of August 2024, there were 192,000 publicly available EV chargers with approximately 1,000 new public chargers added weekly, according to the FHWA.

“The loss of the NEVI program probably won’t be a game-changer or stumbling block for national EV rollouts,” he added. “Private sector investment is probably the more critical and, ultimately, more efficient path to EV charging stations.”

This federal order follows concerns that the country’s inadequate EV charging infrastructure is a major deterrent for potential EV buyers. The NEVI program, created by the 2021 Infrastructure Law, aimed to address these concerns by funding chargers along federal highways, particularly in areas lacking the financial means to support them. But the program’s future is uncertain, as a memo suggests new guidance will be written by transportation officials from the Trump administration, which may delay progress for months.

Electric vehicles and charging stations have followed a serpentine path in the past year.

In August, the federal government allocated an additional $521 million to EV charging infrastructure, though challenges remain in scaling EV production to meet market demand. Ford, for instance, shifted its strategy to manufacture gasoline-powered trucks instead of EVs due to slower-than-expected demand.

Meanwhile, Tesla leads the charge in expanding EV charging networks, with General Motors and Ford adopting Tesla’s charging standard and companies like Walmart and 7-Eleven ramping up their own fast-charging stations.

Despite concerns about the slow rollout of EV chargers, the U.S. Department of Energy was confident last year that the nation was on track to meet then-President Joe Biden’s goal of 500,000 publicly available chargers ahead of schedule. In the past year, EV sales have slowed amid concerns from consumers about recharging as investors waited to see profits.

The Biden administration worked to fill coverage gaps, particularly along high-traffic highway corridors. While the infrastructure is still being built out, there has been progress: 57% of the most heavily trafficked corridors now have fast chargers every 50 miles, up from 38% when Biden took office. Federal funding and the NEVI program sped up deployment, and the network was expected to reach 70% coverage by the end of 2025.

The post NEVI Program Pause Won’t Derail EV Charging Expansion appeared first on PYMNTS.com.