How Federal Policy Reversals Are Shaping EV Charging

On his first day back in office, President Trump signed an executive order, "Unleashing American Energy," rolling back several regulations and targets put in place to accelerate EV adoption. One of the most impactful changes was the elimination of the goal set by the Biden Administration to have 50% of new vehicle sales be electric by 2030. Additionally, federal funding that was meant to expand EV charging infrastructure has been put on hold (evmagazine.com).

The suspension of the National Electric Vehicle Infrastructure (NEVI) program—a program under the Bipartisan Infrastructure Law passed under the Biden Administration that allocated $5 billion over five years to the states to create a nationwide network of EV chargers—has introduced some uncertainty into the EV market. This program was designed to help states deploy EV charging stations, particularly in underserved areas. Now, with federal funding stalled, some projects are delayed and concerns are growing about the availability of public chargers (cbsnews.com).

However, $3.3 billion of the total $5 billion has already been distributed to the states. Although Trump wrote a letter to the states on February 6th urging them to stop all EV charging infrastructure projects funded by NEVI, only Congress has the authority to freeze the states’ spending, and it is unlikely that they will. The NEVI program disbursements have already been committed through contracts and grants that are bound by legal agreements. Additionally, Trump’s executive order is highly politically unpopular as all 50 states, DC, and Puerto Rico have applied for and received funding for their EV infrastructure deployment plans through the NEVI program, with Republican-led states like Texas, Ohio, and Utah leading in EV charger deployment (nrdc.org).

States and Private Companies Are Stepping Up

Despite the federal pullback, many states remain committed to expanding EV infrastructure. 17 states—representing about 40% of U.S. car sales—are still following California’s clean car standards, which promote EV adoption (evmagazine.com). These states will likely continue to see strong EV market growth, especially with major automakers like Tesla and GM leading the charge. 

At the same time, private companies are investing billions into EV charging networks. Tesla, for example, has continued to expand its Supercharger network, often without relying on federal money. While this is great for Tesla owners, it does raise questions about accessibility and standardization across different EV brands as the loss of federal funding would likely squeeze smaller competitors out of the market. 

Although the pullback of incentives may slow growth, EV adoption in the U.S. is predicted to continue to grow, with an estimated 20% of auto sales being EVs by 2030, up from 10% in 2024.

The Legal and Practical Realities of the Policy Shift

Despite these directives, the situation is more complex than it initially appears. Important considerations include the following:

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• Only Congress has the authority to freeze state spending of already distributed funds, making immediate halts legally questionable
• $3.3 billion of the total $5 billion has already been distributed to states through contracts and grants bound by legal agreements
• All 50 states, DC, and Puerto Rico have applied for and received funding for their EV infrastructure deployment plans
• Republican-led states like Texas, Ohio, and Utah are among the leaders in EV charger deployment through NEVI funding
• Any attempt to take back funds would likely face significant legal challenges without evidence of misuse or noncompliance

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While Alabama and Rhode Island have suspended their programs in response to the federal directive, many legal experts suggest that states can continue implementing projects using already-distributed funds without fear of repercussions (NRDC).

EV Adoption Trends and Projections

Despite policy uncertainties, EV adoption continues to grow. Electric vehicles currently represent approximately 10% of new auto sales in the U.S. Projections suggest this figure will reach 20% by 2030, even with reduced federal support. However, if incentives disappear completely, analysts predict a 27% drop in annual EV registrations. The U.S. needs an estimated 1.2 million public chargers to support projected demand by 2030.

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Industry experts note that widespread EV adoption is an international trend, and without supportive regulations and incentives, the U.S. automotive industry risks falling behind global competitors. Some anticipate a temporary surge in EV purchases as consumers rush to take advantage of remaining incentives before they potentially disappear (EV Magazine).

Implications for Multifamily Property Owners and Developers

The recent shifts in federal policies under President Donald Trump's administration have introduced significant changes to the electric vehicle (EV) landscape in the United States. These policy changes have important implications for multifamily property owners and developers, especially when it comes to integrating EV charging infrastructure into their properties.

With federal funding uncertain, property owners and developers need to be strategic about how they approach EV charging. Here are key things to consider:

1. More Demand for On-Site Charging – With public charging expansion slowing down, more renters will be looking for properties that offer EV charging at home. Installing charging stations is a great way to attract and retain tenants.
2. State and Local Incentives Are Still Available – While federal incentives may be in limbo, many states and cities still offer grants, tax breaks, and rebates for installing EV chargers. Checking with local agencies can help offset installation costs.
3. Competitive Advantage – Properties with EV charging stations will stand out in the rental market. As EV adoption continues to grow, these amenities will become even more desirable.

Strategic Planning in Changing Times

While federal policy changes have created some uncertainty in the EV charging world, they haven't changed the fact that transportation is going electric. Federal policies may be shifting, but EV adoption isn’t stopping. While funding changes could make infrastructure expansion a bit trickier, state initiatives and private investments are helping to fill the gap. Multifamily property owners who plan ahead for EV infrastructure will put themselves in a great position as the market evolves. Even with federal funding delays, consumer demand is driving continued investment.

For multifamily property owners, now is a great time to get ahead of the curve and start planning for the future of EV charging. Not only will it make properties more attractive, but it also ensures they stay relevant in an increasingly electric world.

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