Federal Judge Rules DOT Illegally Froze $5B NEVI EV Charger Funds
A U.S. district court in Seattle ruled that the Department of Transportation (DOT) illegally paused $5 billion in NEVI (National Electric Vehicle Infrastructure) funds that Congress approved under the 2021 Infrastructure Investment and Jobs Act. The freeze occurred in February 2026 after Sean Duffy became Transportation Secretary; 20 Democratic-led states and Washington, D.C. sued. Judge Tana Lin found the DOT and Federal Highway Administration failed to follow administrative-law procedures and issued a permanent order barring the department from reclaiming awarded funds or canceling approved state plans. The decision allows states to proceed with previously approved EV charger projects. Environmental groups and state attorneys general praised the ruling. Separately, Congress may consider legislation that would reallocate $879 million of EV charging money to other infrastructure if passed by the Senate, potentially conflicting with the court order. The ruling does not change other federal policies favoring internal-combustion vehicles or cuts to EV incentives, but it prevents retroactive withdrawal of allocated NEVI grants.
Neutral
Direct crypto-market impact is limited because the ruling concerns federal EV infrastructure funding, not cryptocurrency policy or digital assets. Short-term market reaction for crypto is likely neutral: traders may briefly reallocate risk appetite if the broader equity or renewable-tech sectors move on the news, but crypto-specific fundamentals are unaffected. Indirectly, continued support for EV projects can bolster tokenized green-energy or carbon-credit projects over time; similarly, any Congressional reallocation of $879 million could introduce legislative uncertainty that briefly increases risk-off sentiment. Historical analogues: infrastructure funding court rulings typically move equities in affected sectors while leaving crypto markets largely unchanged. Therefore, expect limited direct price moves in major cryptocurrencies, possible sector-specific effects in blockchain projects tied to green energy or tokenized infrastructure, and modest short-term volatility driven by macro risk sentiment rather than crypto-specific drivers.