On Thursday, February 6, the Federal Highway Administration (FHWA) issued a letter to state Departments of Transportation (DOTs) stating that “effective immediately, no new obligations may occur under the NEVI Formula Program.” The National Electric Vehicle Infrastructure (NEVI) Program was expected to provide Michigan with $110 million to build fast charging stations along Alternative Fuel Corridors.
What This Means
States receive NEVI funds through a process laid out in the Infrastructure Investments and Jobs Act:
- States submit annual plans to FHWA based on NEVI guidance. Four years worth of plans have been approved (Fiscal Years 2022–2025), with one year remaining.
- Once FHWA approves a state’s plan, that year’s formula allocation becomes available.
However, FHWA has effectively revoked all annual plan approvals, freezing the approved funding that hasn’t already been “obligated.” The letter does clarify that “until new guidance is issued, reimbursement of existing obligations will be allowed in order to not disrupt current financial commitments.”
FHWA also plans to reevaluate NEVI program guidance and expects to release a draft of updated guidance for public comment “this spring.” The Administrative Procedures Act (APA) requires federal agencies to publish proposed rule changes in the Federal Register and follow a formal process, including public comment periods, before finalizing new regulations. This ensures transparency and public engagement in the rulemaking process. It remains to be seen how long this process will take for new NEVI guidance.
What We Know So Far (Last Updated: February 27, 2025)
- Michigan had been authorized to spend $77.2 million through previously approved State Plans.
- $21.2 million was awarded in Round 1, announced in February 2024.
- MDOT believes it has Round 1 and Round 2 NEVI funding that meets the definition of “obligated” totaling $57.96 million of the $110.06 million expected to be provided.
- $2.2 million has been spent to date.
- One site is operational in Lansing.
- Fifteen additional sites have signed contracts, with approximately twenty more in various stages of development.
- Round 2 proposals are due by March 15, 2025 and selections are expected to be announced in May.
Our Recommendation: Keep Moving Forward
A robust EV charging network is essential to Michigan’s clean mobility future. Given the complexity and long timelines associated with deploying high-power charging stations, it’s critical to keep momentum where possible.
- Round 1 projects with signed contracts should proceed with construction.
- MDOT should continue drafting contracts for awarded Round 1 sites.
- MDOT should allow the Round 2 application window to remain open and conduct a preliminary review of applications based on current NEVI guidance.
- Updated NEVI guidance should streamline processes and accelerate infrastructure deployment.
What’s Next?
There are still more questions than answers. We will continue monitoring the situation and updating this blog as more details emerge.
Questions? Contact Jane at jmccurry@cleanfuelsmi.org.
