TSLA322.1700.12%
GM48.2000.11%
F10.5900.165%
RIVN13.565-0.205%
CYD21.200-0.51%
HMC29.140-0.51%
TM172.400-3.19%
CVNA319.89011.98%
PAG173.4703.08%
LAD332.1905.23%
AN196.5803.67%
GPI445.7006.69%
ABG237.6201.83%
SAH78.2000.58%
TSLA322.1700.12%
GM48.2000.11%
F10.5900.165%
RIVN13.565-0.205%
CYD21.200-0.51%
HMC29.140-0.51%
TM172.400-3.19%
CVNA319.89011.98%
PAG173.4703.08%
LAD332.1905.23%
AN196.5803.67%
GPI445.7006.69%
ABG237.6201.83%
SAH78.2000.58%
TSLA322.1700.12%
GM48.2000.11%
F10.5900.165%
RIVN13.565-0.205%
CYD21.200-0.51%
HMC29.140-0.51%
TM172.400-3.19%
CVNA319.89011.98%
PAG173.4703.08%
LAD332.1905.23%
AN196.5803.67%
GPI445.7006.69%
ABG237.6201.83%
SAH78.2000.58%
Dealers' #1 source for auto industry news, content, coaching & analysis

Spending power dispute erupts over Trump’s halt of NEVI EV grants

The GAO contends that the decision violates The Impoundment Control Act of 1974.

The White House rejected a Government Accountability Office (GAO) conclusion that the Trump administration illegally delayed $5 billion in EV infrastructure grants. On Tuesday, the Office of Management and Budget (OMB) instructed the Department of Transportation (DOT) to “pay no heed whatsoever” to the GAO’s opinion, igniting a constitutional showdown over presidential control of congressionally authorized spending.

The National Electric Vehicle Infrastructure (NEVI) Formula Program is a $5 billion initiative funded through the Biden administration’s 2021 Infrastructure Investment and Jobs Act. The Trump administration froze the grants in early February to revise guidance on charging-station spacing and equity requirements, which significantly impacted state planning and timelines.

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The GAO contends that the decision violates The Impoundment Control Act of 1974. This federal law prohibits the president from withholding funds approved by Congress unless lawmakers consent to the deferral or cancellation.

The White House disputes the GAO’s finding and is challenging the agency’s authority. Mark Paoletta, general counsel at OMB, called the GAO a “partisan actor” and accused the agency of attempting to undermine President Trump’s spending reforms. He further suggested that executive agencies should not feel compelled to cooperate with GAO, guidance that could hinder the watchdog’s non-partisan mission to hold the federal government accountable and increase efficiency

The GAO issued a public rebuttal, maintaining that its findings are non-partisan, evidence-based, and legally sound. The agency stood by its conclusion that delaying NEVI funds constituted an illegal impoundment.

The conflict signals a larger strategy by the Trump administration to weaken the influence of oversight institutions. It aligns with Trump’s campaign promise to challenge the constitutionality of the Impoundment Control Act.

Meanwhile, the administration submitted over $9 billion in proposed rescissions to Congress on Tuesday, a move that supports cuts made by the Department of Government Efficiency (DOGE). In addition, Trump advisers have also considered using a controversial “pocket rescission” tactic, which could allow funds to expire at the end of the fiscal year if the White House strategically times its requests. The GAO has warned that this tactic is a violation of federal law.

OMB Director Russell Vought will testify before the House Appropriations Committee on Wednesday, where lawmakers are expected to press him on these budget strategies.

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Jasmine Daniel
Jasmine Daniel
Jasmine Daniel is a staff writer and reporter for CBT News. She holds a BFA in Writing from the Savannah College of Art & Design and has over eight years of experience in SEO, digital marketing, and strategic communication. Her storytelling skills bring breaking news to life, delivering timely, impactful stories that resonate with readers.

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