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Federal Court Denies Vermont's Request to Release Frozen EV Infrastructure Funds

8 days ago
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Federal Court Denies Vermont's Request to Release Frozen EV Infrastructure Funds

Key Insights

  • A federal court ruling has left Vermont's $16.7 million EV charging infrastructure funds on hold, denying the state's claim of 'irreparable harm.'

  • Vermont, along with 15 other states, sued the Trump administration for withholding funds allocated by Congress for EV charger projects.

  • Clean energy advocates argue the freeze disproportionately harms rural and low-income communities by delaying EV adoption.

  • The state plans to explore further legal options to secure the funding and advance its EV goals.

A federal court has declined to release $16.7 million in frozen federal funds earmarked for Vermont's electric vehicle (EV) charging infrastructure, dealing a setback to the state's efforts to expand its EV network. The ruling, issued by U.S. District Judge TanaLin in Washington, partially granted a preliminary injunction to release funds for other states but denied Vermont's request, citing insufficient proof of 'irreparable harm.' The decision leaves Vermont's planned $9.3 million in contracts for charging station projects in limbo.

The funds were withheld earlier this year by the Trump administration through the Department of Transportation and the Federal Highway Administration, prompting Vermont and 15 other states to file a lawsuit in May. The states argued that the administration overstepped its authority by interfering with congressionally allocated funds. While the court sided with most plaintiffs, Vermont, Minnesota, and Washington, D.C., were excluded due to a lack of documented federal approval for their state plans.

Clean energy advocates, including Ben Edgerly Walsh of the Vermont Public Interest Research Group, criticized the ruling, emphasizing its disproportionate impact on rural and low-income communities. 'Americans in rural parts of the country — blue, red, and purple — are worse off because these funds are not out the door,' Walsh said. Vermont, despite leading in per-capita charging ports, still faces gaps in accessibility, particularly for renters and low-income residents.

The Vermont Attorney General's Office expressed disappointment and vowed to pursue further legal avenues. 'The Attorney General is very disappointed with this outcome and will continue to explore legal options to protect Vermont’s interests and funding in this case,' said spokesperson Amelia Vath. The state's original plans included deploying charging stations statewide to support broader EV adoption, a goal now delayed by the funding freeze.

The ruling underscores ongoing tensions between state and federal priorities in clean energy infrastructure. While Vermont's immediate plans are stalled, the case highlights the broader challenges of aligning federal funding with state-level climate initiatives. Advocates warn that delays could slow progress toward emissions reductions and equitable access to EV technology.