The federal district court for the Western District of Washington vacated and set aside federal actions that froze funding for states National Electric Vehicle Infrastructure (NEVI) Formula Program established by the Infrastructure Investment and Jobs Act (IIJA). Under IIJA, the Federal Highway Administration first issued guidance in 2022 for states and localities to deploy electric vehicle infrastructure and states submitted State Electric Vehicle Infrastructure Deployment Plans describing how they intended to use NEVI Formula Program funds. The court declared that the rescission of the NEVI Formula Program guidance and suspension of state plans in February 2025 exceeded the federal defendants’ statutory authority, was arbitrary and capricious, and was done without observance of proper procedure in violation of the Administrative Procedure Act (APA). Because it had ruled for the plaintiff states and plaintiff-intervenor organizations on their APA claims, the court did not consider their constitutional or ultra vires claims. The court rejected the defendants’ contention that the plaintiffs’ claims were moot because FHWA had issued new NEVI Formula Program guidance in August 2025 and resumed the program. The court found that the “consequences and effects of the funding freeze still linger” and that funds remained at risk of not being disbursed. In addition to vacating and setting aside the federal actions and declaring the federal actions unlawful, the court found that the plaintiff states established entitlement to injunctive relief and that the intervenor organizations established the need for injunctive relief in all NEVI jurisdictions.

States' lawsuit challenging the suspension or revocation of federal approvals of State Electric Vehicle Infrastructure Deployment Plans and the withholding or withdrawing of National Electric Vehicle Infrastructure Formula Program funds.

Washington v. U.S. Department of Transportation

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Washington Federal Court Ruled that Federal Freeze on Electric Vehicle Infrastructure Funding Was Unlawful

Filed

United States of America

Washington

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Washington Federal Court Ruled that Federal Freeze on Electric Vehicle Infrastructure Funding Was Unlawful

Policy instrument

Risk

Impacted group

Just transition

Renewable energy

Fossil fuel

Economic sector

Adaptation/resilience

Finance