The National Electric Vehicle Infrastructure (NEVI) project has emerged as the center of attention of federal EV policy during the Trump Administration, which started as a temporary funding stop and has become a broader discussion on industrial policy, domestic manufacturing, and the future of national charging rollout.
In February 2025, the U.S. Department of Transportation halted NEVI funding as a more general review of federal EV programs. The action instantly upset the state’s deployment plans and led to a lawsuit. As of May 2025, 20 states, led by California, had filed suit, claiming that the suspension was unlawful. In January 2026, a federal judge agreed, reinstating the program and affirming that NEVI funds must be disbursed as Congress authorized.
The Administration simultaneously redesigned the overall EV incentive framework. The “One Big Beautiful Bill” of July 2025 also repeals the $7,500 federal EV tax credit, which is expected to save approximately 800 million a year, almost the same amount that NEVI spends each year. Although independent of infrastructure funding, the move was an indication that federal assistance to electrification was being recalibrated and that a stronger emphasis was being placed on fiscal discipline.
Transportation Secretary Sean P. Duffy published updated NEVI guidance in August 2025 to accelerate implementation by providing states with more flexibility. The new design moved siting authority to states, prioritized practical factors, including the availability of three-phase power, and simplified the application requirements. Though the guidance was described as interim by the Department, it operated as temporary final guidance pending comments, a rather unusual method of operation implying a lack of enthusiasm about amendments.
On February 10, 2026, the policy situation changed once again, as Secretary Duffy stated that the Department was considering returning to a more rigorous 100% Buy America provision for EV chargers that receive Department funding, such as NEVI. In 2023, a waiver is 55% domestic content requirement for chargers.
That waiver was introduced following industry feedback that full U.S. manufacturing could not be done at a commercial level, as the electronic components and power system supply chains had been highly globalized.
The Buy America issue is publicly commentable, unlike the August 2025 guidance, which ends on March 16, 2026. The Department is assessing whether to suspend the 2023 waiver and revert to the original 2021 standard requiring 100% domestic content. A final decision will follow review of submitted comments.
The implications are significant. A 100% domestic demand might lead to slower deployment if compliant equipment is not found at scale. There are various core charger inputs produced in Asia over the decades. The domestic input capacity is low. Full localization right away would cause bottlenecks, or postpone state projects, or, in effect, freeze funding even though the court has ordered NEVI to be turned back on.
Critics argue this approach could function as a de facto funding freeze under the guise of industrial policy, particularly given the political sensitivity surrounding EV infrastructure. Some interpret it as a valid assessment of the country’s manufacturing preparedness.
According to them, the Department has done a thorough industry analysis prior to its publication of the August 2025 guidelines and that the existing waiver is renewable to a mid-2026 deadline, anyway. In that view, the Administration might be assessing what the industry can actually do rather than trying to stop the program directly.
The conflict is between reality and aspiration. A Buy America threshold of 100% may cause long-term investment in local production, but without a transition strategy, it may cause immediate upheaval. The 55% mark was taken because the suppliers proved that complete compliance was impossible in the current supply chains. A full reinstatement without either a gradual process, a capital incentive, or workforce development support would compromise deployment schedules and investor confidence.
Industry response will play a major role. It is a common practice among manufacturers to be apprehensive about publicizing supply chain limitations, lest it signal weakness to investors or buyers. States and trade associations are consolidating feedback on anonymity to provide policymakers with data-driven information. This strategy enables decision-makers to see the actual costs, timeframes, and manpower needs for resourcing production without segregating individual companies.
Policymakers must be provided with a specific analysis of what complete domestic production would entail, including capital requirements, the development of the supplier ecosystem, employee training, and actual implementation schedules. Transparent, evidence-based feedback increases the likelihood of a calibrated policy outcome rather than abrupt shifts.
NEVI now sits at the intersection of infrastructure deployment, industrial strategy, and geopolitical supply chain realignment. Funding has been restored, but regulatory uncertainty persists. The Administration has signaled willingness to consider industry input on Buy America requirements, creating a narrow window for meaningful engagement. The final decision will shape the long-term structure of U.S. EV manufacturing.
Stakes are not limited to compliance regarding companies involved in this ecosystem. Federal directives are directly affecting capital placement, partnering approach, manufacturing presence, and state coordination.
Whether it be Buy America regulations or tariffs on the horizon, U.S. Manufacturing is a major priority of both political parties and will continue to drive decisions at the state, local, and federal levels. Shepherd Strategies is a proven partner for onshoring – from site selection, to government funding applications, to negotiating offtake agreements, to providing regulatory comment – our suite of services is tailored to each client’s needs.
Navigating policy instability, we provide and execute strategies for clients that withstand political changes and global strife. Contact us today to capitalize on these changes in NEVI, as well as other aspects of America’s focus on updating the grid while transitioning to more U.S. based manufacturing.
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