President Trump’s recent effort focuses on obstructing the financial resources fueling EV charging infrastructure that Tesla has consistently utilised. Elon Musk’s political disparity with his Tesla’s sustainable energy motives has once again become apparent.
Trump’s success with this move hangs in the balance, but should his attempts be fruitful, Tesla might lose its key funding sources that have been instrumental in constructing an extensive leading EV charging network over the past couple of years.
In an executive order issued on Trump’s second term’s inauguration day, he demanded a halt on the disbursement of funds drawn from the Inflation Reduction Act and Bipartisan Infrastructure Law-created programs. He explicitly targets the cessation of fund flow for EV charging stations from the National Electric Vehicle Infrastructure (NEVI) Formula Program and the Charging and Fueling Infrastructure (CFI) grant program.
The agencies in question are set a 90-day review period for their disbursement methods. Trump’s order also capacitates the Director of OMB and Assistant to the President for Economic Policy with the determination of consistent disbursement.
Ironically, Musk’s Tesla, claiming to accelerate transition to sustainable energy, is partnering with Trump’s administration notorious for its hefty blows to sustainable energy development. Trump’s administration has already taken measures like halting federal leases for offshore wind development.
Recently, Tesla was part of a collective that secured a $100 million award from the CFI program to establish charging infrastructures for electric trucks in Illinois. Tesla’s CFI award is minute in comparison to the nearly $2 billion allocated by the Department of Transportation over two years.
An interruption or total halt to the funds from these programs could see the light of day should Trump’s administration victoriously counter the Impoundment Control Act. However, it remains uncertain if Trump can legally block the awards’ funding already under contract.
Yet, potentially overstepping contract and law boundaries, agencies under substantial pressure from Trump could elect to withhold monetary disbursement. Under such circumstances, the corresponding parties would need to battle for their awards from NEVI or CFI.
Original source: Read the full article on TechCrunch
