Federal court rules USDOT's NEVI pause unlawful as states show continued commitment despite low reimbursement rates

District Judge Tana Lin ruled that the US Department of Transportation's February to August pause of the National Electric Vehicle Infrastructure programme violated the Administrative Procedure Act, siding with states and NGOs who challenged the halt. The judgment revealed that whilst reimbursement rates for NEVI funds remain low, state obligations indicate plans to continue federally funded charging infrastructure build out. States now face uncertainty from a pending FY 2026 appropriations bill that would transfer 879 million dollars in NEVI funds to other Federal Highway Administration programmes.

Why it matters: The ruling restores legal certainty for CPOs and contractors pursuing NEVI funded projects, though the threat of 879 million dollars in redirected funding creates fresh procurement risk. Low reimbursement rates signal potential cash flow challenges for operators awaiting federal payments on completed installations.