CA and 16 states sue feds for $5B ‘gift to China’ withholding EV charger funds
California and 16 other states have sued the government for illegally withholding $5 billion in funds that Congress earmarked for EV charging, calling the action “another trump gift to China.”
The federal NEVI (National Electric Vehicle Infrastructure) program was established by the Infrastructure Investment and Jobs Act (IIJA), otherwise known as the Bipartisan Infrastructure Law, pushed for and signed by President Joe Biden.
Among other things, the IIJA dedicated $5 billion in funding to expanding EV chargers, in order to give more Americans access to EV ownership, and allow them to unlock the fuel cost and health savings that EV owners, and communities with high EV penetration, enjoy.
Since then, every state has submitted a plan and that money has gotten assigned to projects around the country in various levels of completion, with several charging stations already open.
The NEVI program was even the main driver of Tesla opening up its charging port and creating the NACS standard, due to the law’s requirement that federal funding can only go to charging stations that have open access to multiple brands of vehicle. Tesla’s Superchargers used to be open only to Teslas, but after this law passed, Tesla started opening them up to other brands.
And wide adoption of the NACS standard by the industry promises to fix a lot of the problems with EV charging.
So, NEVI is a great program, and it’s helping Americans to save on fuel and maintenance costs, reducing barriers to charging, and making the world cleaner for everyone who breathes air.
So of course, the enemy of America currently occupying the White House (despite there being a clear Constitutional remedy for this crisis) opposes it.
In February, the Federal Highway Administration (FHWA), at the behest of convicted felon Donald Trump, froze funding for the NEVI program, even though that funding was already allocated by Congress for this purpose. Who knew a felon would break the law?
Now, states are pushing back against the illegal funding freeze, as 17 states, led by California, Colorado and Washington, are suing the FHWA to free up the funds that were allocated to them.
California Governor Gavin Newsom and Attorney General Rob Bonta laid out their argument today in a press release by the California Governor’s office.
Among those arguments is something we’ve mentioned many times here on Electrek: that republican efforts to diminish the US EV industry are a “gift to China,” who have well and truly taken the lead in the global EV industry, and other countries – particularly the US – are just not doing enough to keep up.
When America retreats, China wins.
President Trump’s illegal action withholding funds for electric vehicle infrastructure is yet another Trump gift to China – ceding American innovation and killing thousands of jobs.
Instead of hawking Teslas on the White House lawn, President Trump could actually help Elon – and the nation – by following the law and releasing this bipartisan funding.
-California Governor Gavin Newsom
Another of President Biden’s laws, the Inflation Reduction Act, was an effort to increase investment in the EV industry in the US – and did so while also lowering the deficit. It worked extremely well, leading to hundreds of billions in investment and hundreds of thousands of jobs in American EV manufacturing. Certainly much more effective than the unwise tariffs that both President Biden and Mr. Trump have supported.
However, as one might expect from an enemy of America, Mr. Trump has opposed that law as well. After he begged the oil industry for a billion-dollar bribe to harm EVs during his presidential campaign (where he also repeatedly promised to raise inflation for Americans), his republican party now thinks they have the votes to inflate the price of EVs by $7,500.
Oddly, despite Mr. Trump’s clear opposition to the well-being of Americans, and particularly to the well-being of the American auto industry, Tesla CEO Elon Musk, perhaps America’s most high-profile auto CEO, donated hundreds of millions of dollars to this anti-EV candidate. He has used tortured logic to claim that raising the price of his products by $7,500 relative to the competition won’t hurt his business, but that’s just wrong.
As Governor Newsom points out in his quote above, this situation seems puzzling. While Mr. Trump did improperly utilize government property to create a bizarre ad for his largest political donor, his policy proposals so far – which Musk claims he “loves” – have generally been directed towards harming Tesla and other EVs. The money from the NEVI program could go a long way towards filling the gaps in EV charger buildout around the country, making Teslas more usable for Americans who don’t live in areas where chargers are easy to come by.
Pausing that funding not only puts charger plans into chaos (something Musk is no stranger to), it also means that Tesla can’t use money that it created an entire charging standard just to get a piece of.
The lawsuit requests that a court stop Mr. Trump’s illegal actions and permanently halt the FHWA from withholding these funds.
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Despite hyping the product for a year and half, it is fairly clear that Tesla doesn’t want to sell its new cheaper Model Y. At least, in the US.
Here’s why.
Remember the Cybertruck RWD?
Tesla launched the new cheaper version of the Cybertruck in April for $10,000 less than the AWD and about $20,000 worth of features removed.
By September, Tesla discontinued the model. It lasted a solid 6 months.
Many believed that Tesla wasn’t actually looking to sell the new version, which served more as making the Cybertruck AWD seemed like better value.
We might be witnessing a redo here witht the new standard Model Y that Tesla launched yesterday.
It costs $5,000 less than the Model Y Long Range RWD, which Tesla now calls “premium”, along with the AWD and Performance versions, while Tesla removed roughly $6,000-$8,000 worth of features.
The value proposition is not great, but that’s not the only reason why Tesla doesn’t seem to want to sell it.
The automaker currently doesn’t offer a lease on the new version, which is not unusual after having just launched a new variant or model. For example, Tesla is still not offering leases on the Model Y Performance, which only recently launched in the US.
But more importantly, Tesla is financing the new Model Y Standard at an APR almost 30% higher than for the cheaper “Premium” version.
The result is only $72 difference in monthly payments between the two versions:
The difference is virtually the same as between the Premium RWD and AWD, but you get a whole additional motor for that.
Electrek’s Take
We have been anticipating a situation like this, but it is honestly even worse than we thought.
For example, we didn’t anticipate Tesla removing Autopilot as standard. That alone is a few thousands dollars of value removed before even accounting for the hardware changes, such as the cloth interior, cheaper seats, or even the power folding mirrors.
Then, there are the honestly quite lazy changes, like not actually removing the glass roof, but covering it inside with a headliner.
The only really good thing I see from this launch is that it is very efficient EV and Tesla still has a lead on that front over most.
However, I have to reiterate that it is getting lazy with this lead.
The standard version is only 125 lbs lighter than the premium despite Tesla seemingly using the same battery pack with a few cells removed. When you add up all the features removal, the weight loss should be much more significant, but that’s harder to do when you make decision such as covering the glass roof rather removing it.
Tesla has to know that the value proposition here is not good.
It’s a bummer that Tesla went with that rather than a new smaller and less expensive vehicle as originally planned.
Especially when you consider that the decision was made to try to increase the utilization rate of Tesla’s current production lines, which appears to be running at about 60% amid this demand slump.
I don’t think this, and the new standard Model 3, which is better value to be fair, solve this situation.
As I previously stated, I believe this boost demand between 10-15% and that’s after Tesla either drops the price or introduces 0% interest financing, which I expect before the end of the quarter.
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On today’s incredibly frustrating episode of Quick Charge, Tesla is making it easier than ever to make fun of them by rolling out a new, “affordable” Model Y that costs $2,000 more than the “expensive” one did last week, thanks to the cancellation of the $7,500 tax credit that Elon Musk (the guy who is so good at business that he’s allegedly worth $1 trillion) spent $200 million campaigning for.
We’ve also got the new, single-motor Volvo EX30 at a price that undercuts the cheap Tesla, but includes a full length glass roof that isn’t inexplicably covered in upholstery to punish poor people. All this and more – enjoy!
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Today’s episode is brought to you by Climate XChange, a nonpartisan nonprofit working to help states pass effective, equitable climate policies. The nonprofit just kicked off its 10th annual EV raffle, where participants have multiple opportunities to win their dream model. Visit CarbonRaffle.org/Electrek to learn more.
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Chevy’s electric SUV is now the best-selling EV in the US outside of Tesla. The 2026 Chevy Equinox EV is slightly more expensive than the outgoing model, but GM has added new style packages for you to choose from.
GM raises 2026 Chevy Equinox EV price, adds options
The Chevy Equinox EV doesn’t need much help. Starting at just $34,995, the 2025 Chevy Equinox quickly became one of the best-selling electric vehicles in the US.
Entering its third year, the Equinox EV remains GM’s most affordable EV, with starting prices slightly higher at $36,495. That includes the $1,395 destination fee.
Since it’s a carryover model, there aren’t too many changes, but buyers will have several new style packages to choose from.
The 2026 Chevy Equinox LT gains a new Midnight Package, which adds black emblems, bowtie, badging, wheel caps, and 19″ black painted aluminum wheels, for $595.
There’s also a new Tech Bronze Package available on the LT and RS trims. The new option includes a Tech Bronze decal, a black nameplate, a black bowtie emblem, and 21″ Tech Bronze wheels. It costs an extra $3,595.
The 2026 Chevy Equinox EV is now listed on GM’s website. It’s still available in LT1, LT2, and RS trims with Front Wheel Drive (FWD) and All Wheel Drive (AWD) powertrain options.
The base 2026 LT FWD trim starts at $36,495 with up to 319 miles of range, including a $1,395 destination fee. Upgrading to AWD costs an extra $5,300, with a slightly shorter range of 307 miles.
| Chevy Equinox EV trim | 2025 Starting Price | 2026 Starting Price | EPA-estimated Range |
| LT 1 FWD | $34,995 | $36,495 | 319 miles |
| LT 1 AWD | $38,295 | $39,795 | 307 miles |
| LT 2 FWD | $43,295 | $43,295 | 319 miles |
| LT 2 AWD | $46,595 | $46,595 | 307 miles |
| RS FWD | $44,795 | $45,595 | 319 miles |
| RS AWD | $48,095 | $48,895 | 307 miles |
Following another record quarter of EV sales in Q3, GM said that the Chevy Equinox EV was the best-selling non-Tesla electric vehicle in the US.
With several new affordable EVs arriving, including the new Nissan LEAF, will the Equinox continue to be a top seller in 2026? It will be interesting to see where the rankings end up at this time next year.
Wondering if Chevy’s electric SUV lives up to the hype? You can use our link to find 2025 and 2026 Chevy Equinox EV models near you and try it out for yourself.
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