The Biden administration's push to accelerate the transition to electric vehicles (EVs) is facing a major setback as President Donald Trump moves to halt federal disbursements for charging infrastructure. Federal funds earmarked for expanding Austin's EV charging network have been frozen, leaving the city's ambitious electrification goals in limbo.
U.S. Rep. Lloyd Doggett, an Austin Democrat, confirmed the pause, which comes as part of Trump's broader effort to roll back policies favoring EVs. "This vital funding was announced only three weeks ago and has not yet been disbursed," Doggett told Axios. "We cannot permit this pause to become a broken promise to Austin Energy and other local governments, which are relying on these funds to develop a comprehensive electric charging network."
The $15 million in federal funding was set to come from the Bipartisan Infrastructure Law of 2021, intended to double the number of fast chargers in Austin and add more than 200 new charging ports. Austin Energy currently operates about 1,500 Level 2 charging ports and 30 fast-charging stations. The city has set a long-term target of installing 37,000 chargers over the next 15 years to support its climate initiatives.
Trump's energy policy shift is not limited to Austin. Hours after taking office, he signed an executive order revoking Biden's goal for EVs to make up 50% of new vehicle sales by 2035. The directive also halts disbursements of federal EV infrastructure funds until agency heads review whether such projects align with Trump's objective of eliminating "unfair subsidies and other ill-conceived government-imposed market distortions that favor EVs."
While the administration argues that the move is about ensuring consumer choice, it has sent ripples through the automotive and energy industries. The number of public EV charging stations in Texas has more than doubled over the past four years, growing from 1,470 locations with 4,500 charging ports in early 2021 to over 4,000 stations offering more than 11,000 ports today, according to the U.S. Department of Energy.
Nationwide, more than 75,000 public EV charging stations with over 200,000 ports are available, but the country still falls short of the 1.2 million chargers the National Renewable Energy Laboratory estimates will be needed by 2030 to support projected EV sales.
EV adoption is growing, though at a slower pace than many had expected. Electric vehicles accounted for just 8.1% of new car sales in 2024, with 1.3 million units sold, according to Cox Automotive. In Austin, EVs made up 9.6% of new registrations last year, compared to 5.8% statewide. However, concerns over charging accessibility remain a significant barrier for consumers considering the switch from gasoline-powered vehicles.
The rollback on EV initiatives is part of a broader strategy by the Trump administration to shift federal energy policy away from government-driven climate action. Trump has pledged to rescind Biden-era emissions regulations, which he and Republican lawmakers argue function as de facto EV mandates by pressuring automakers to produce battery-powered vehicles.
To unwind these policies, federal agencies-including the Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA)-will need to go through a formal process to revise emissions and fuel economy standards. This will require proposed changes, public comment periods, and legal reviews, which could take several months.
Beyond regulatory rollbacks, the administration is also targeting financial incentives for EVs. While consumer tax credits for EV purchases remain in place for now, altering them would require congressional action. Republican lawmakers, who control both the House and Senate, are eager to reduce spending to balance out broader tax cuts promised by Trump. Cutting EV incentives is expected to be a key point of debate, though lawmakers from states with growing EV manufacturing industries may resist sweeping changes.
Rep. John James of Michigan, a Republican and vocal critic of Biden's EV policies, welcomed the end of what he called "EV mandates" but warned against fully dismantling manufacturing and energy tax credits. The House of Representatives should "proceed with caution," James said, acknowledging that many businesses in his district rely on federal incentives to sustain EV production.
While the Trump administration is pulling back on most aspects of federal EV support, one area it is expected to maintain is the development of domestic supply chains for battery materials. China currently dominates global mining and processing of key minerals used in EV batteries, and both Democratic and Republican lawmakers have expressed concerns about supply chain vulnerabilities.
Trump's executive order specifically names critical minerals as a national priority for federal funding, signaling continuity in this area of policy. Companies like Ioneer, which is developing the Rhyolite Ridge lithium project in Nevada, and Cirba Solutions, a battery recycling firm, have expressed confidence that bipartisan support for mineral independence will remain intact.
However, industry leaders caution that weakening EV adoption efforts while supporting critical minerals could create economic contradictions. "If there's no one buying vehicles or using batteries, you don't need the critical minerals," said David Klanecky of Cirba Solutions. "It's a two-sided story."
The broader uncertainty surrounding Trump's EV policies is likely to trigger legal challenges, particularly in states like California, which has its own strict emissions regulations that mandate a transition to zero-emission vehicles by 2035. Trump's order directs federal agencies to terminate state policies that restrict gas-powered vehicle sales, setting the stage for a potential legal battle between the federal government and California.
Automakers, meanwhile, are taking a cautious approach. While some welcome the easing of regulations, others recognize that global markets and consumer demand will continue driving EV development. "There's a saying in the auto business: you can't get ahead of the customer," said John Bozzella, president of the trade group representing automakers.
With consumer interest in EVs still growing-29% of new vehicle shoppers recently reported being "very interested" in purchasing an electric vehicle, according to JD Power-industry leaders acknowledge that scaling back federal support could slow progress but is unlikely to reverse the global shift toward electrification.
