President Donald Trump has signed an executive order aiming to dismantle several key initiatives from the previous administration that promoted electric vehicles (EVs). This move includes revoking federal tax credits for EV purchases, halting funding for EV charging infrastructure, and withdrawing California’s federal exemption to phase out gas-powered cars by 2035.
The executive order, titled “Unleashing American Energy,” seeks to reallocate funds from programs like the National Electric Vehicle Infrastructure (NEVI) Formula Program and the Charging and Fueling Infrastructure (CFI) Grant Program to traditional infrastructure projects. Legal experts argue that these efforts might violate the Impoundment Control Act, which limits the president’s power to block congressionally approved spending.
Industry stakeholders have expressed concerns about the potential impact of these policy changes. Stellantis, a major automaker, stated that it is prepared to adapt to the evolving regulatory environment. However, Ford and General Motors declined to comment on the executive order.
Despite these federal policy shifts, the momentum toward EV adoption appears resilient. States like Michigan are investing heavily in EV manufacturing and battery projects, with over $27 billion allocated to such initiatives. Notable projects include General Motors’ Factory ZERO and a $1.6 billion battery manufacturing campus in Van Buren Township.
The global automotive industry continues to advance toward electrification. Companies like Rivian plan to introduce advanced hands-free driver assistance systems in 2025 and “eyes-off” systems in 2026, signaling ongoing innovation in the EV sector.
Environmental groups are expected to challenge the executive order, arguing that it undermines efforts to combat climate change. The legal battles that may ensue could determine the future landscape of EV adoption in the United States.
In summary, while the Trump administration’s recent actions represent a significant shift in federal policy, the broader trend toward electric vehicles, driven by state initiatives and industry innovation, is likely to continue.