States can now access National Electric Vehicle Infrastructure (NEVI) funds after being previously blocked by the Department of Transportation (DOT) and Federal Highway Administration (FHWA).
U.S. District Judge Tana Lin ruled on Friday that DOT and FHWA unlawfully prevented access. This restores the $5 billion program authorized by the 2021 Infrastructure Investment and Jobs Act that many convenience stores rely on to finance highway-adjacent electric vehicle (EV) chargers.
NEVI is structured as a formula program, similar to traditional federal highway funding, with $5 billion appropriated to states for EV charging infrastructure. The statute specifies that NEVI funds remain available until expended, rather than expiring at the end of a fiscal year.
The court entered judgment in a lawsuit brought by 20 states and the District of Columbia, along with seven public-interest organizations, challenging federal actions that halted access to NEVI funding despite previously approved state plans.
What the ruling means for convenience stores
NEVI funds flow through state deployment plans—which often include highway-adjacent retail locations—so the ruling directly affects convenience-store retailers that host or are considering hosting EV chargers.
The ruling gives retailers more certainty when planning EV charging investments because it makes clear that NEVI funds are formula-based and stay available until fully spent, so approved projects can move forward as planned.
As U.S. District Judge Tana Lin wrote in her ruling on Jan. 23, “Defendants DOT and the Federal Highway Administration (‘FHWA’) … yanked the NEVI Formula Program’s cord out of the outlet, calling for an instantaneous and sudden cessation of the program … Such capriciousness runs counter to the Administrative Procedure Act; it is simply not how things are lawfully done.”
States’ approved plans were put on hold in January 2025
Under the law, states are required to submit annual EV Infrastructure Deployment Plans to FHWA outlining how NEVI funds will be used. Once approved, those plans allow states to obligate funds and move forward with project reimbursements. According to the court record, states began submitting deployment plans in 2022, and FHWA approved plans covering fiscal years 2022 through 2025.
The dispute arose after a Jan. 20, 2025, presidential executive order paused disbursement of Infrastructure Investment and Jobs Act funds. On Feb. 6, 2025, FHWA rescinded existing NEVI guidance and suspended approval of all state deployment plans, informing states that no new obligations could occur until new guidance was issued and new plans were submitted and approved.
The court found that this action effectively froze access to NEVI funds, including money tied to previously approved plans. States were unable to submit authorization requests to draw down funds, halting payments and project activity. In California, a March 28, 2025, authorization request for payment on an active project returned an error indicating that no funds were available. FHWA also placed NEVI program codes in an “expired” status, blocking obligations. In Delaware, a state agency reported it lacked sufficient NEVI funding for an approved project and had to rely on other funding sources.
Agencies failed to follow the law
In its ruling, the court emphasized that the NEVI statute allows DOT to withhold funds only under limited circumstances, such as when a state fails to submit a deployment plan or fails to carry out an approved plan. Even then, the law requires a defined process, including notice to the state, consultation, time to address deficiencies and an opportunity to appeal before funds can be withheld.
The court concluded that FHWA did not follow these statutory procedures before suspending access to funds and revoking approvals. Instead, the agencies broadly rescinded guidance and froze obligations across multiple states, including those with approved deployment plans. Based on that record, the court granted summary judgment against the federal defendants.
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