GAO Finds that USDOT Impounded FHWA Electric Vehicle Formula Funds

The Government Accountability Office (GAO) issued a decision, May 22, finding that USDOT is not authorized to withhold Federal Highway Administration (FHWA) National Electric Vehicle Infrastructure (NEVI) formula funds because it violates the Impoundment Control Act. GAO states that “DOT must continue to carry out the statutory requirements of the program.”

New obligations under the NEVI program have been paused pursuant to a Feb. 6, 2025 FHWA memo suspending approval of existing state implementation plans pending new guidance.

The GAO decision also interpreted the law in a way that may ultimately move the date of obligation earlier for a broad range of non-competitive grants, including public transit formula grants.

GAO has the authority under the Impoundment Control Act to enforce its decisions with civil lawsuits. The GAO decision may also affect ongoing litigation concerning this funding pause.