States Sue U.S. Over EV Charging Grant Freeze

States challenge transport department pause on grants, raising doubts for fleet electrification

21 Dec 2025

A lawsuit by US states against the federal government has cast uncertainty over plans to expand electric vehicle charging for commercial fleets, after the Department of Transportation halted approvals for new grants late last year.

Sixteen states and the District of Columbia argue that the transport department unlawfully suspended access to funds already authorised by Congress to support electric charging infrastructure. The pause has frozen billions of dollars intended to accelerate the rollout of chargers for electric vans, buses and trucks, particularly along major freight and delivery routes.

For commercial fleet operators, the dispute has immediate consequences. Many had planned vehicle purchases and route strategies around the expected expansion of public charging. With approvals on hold, some projects have been delayed, while others are being reworked as companies reassess costs, timelines and exposure to policy risk.

The grants were part of a broader federal effort to support electrification in hard-to-decarbonise transport segments. Reliable, high-capacity charging is critical for commercial vehicles, which typically operate on fixed schedules and routes and face higher downtime costs than private cars.

Industry analysts say the legal uncertainty is likely to shape near-term investment decisions. Fleet operators may place greater emphasis on private, depot-based charging that they can control directly, rather than relying on public infrastructure backed by federal programmes. Charging providers, meanwhile, are expected to slow or stagger investments until there is greater clarity on funding and regulatory conditions.

The case also underscores a shift in how the electrification market is judged. Falling battery costs and improving vehicle performance remain important, but policy stability has become equally central. States supporting the lawsuit warn that prolonged delays could increase costs and slow progress towards emissions targets. Federal officials have said the pause is needed to review the programme and strengthen oversight.

While the court challenge has disrupted near-term planning, the underlying trend remains intact. Demand for electric commercial vehicles continues to grow, driven by corporate climate commitments and the prospect of lower operating costs. Until the legal dispute is resolved, fleets and infrastructure providers are adjusting strategies to remain flexible in a changing policy environment.