Trump Admin's EV Funding Freeze Violated Federal Law, Says Government Watchdog
A government watchdog says President Donald Trump's administration may have violated a little-known federal law through a move to rescind funding for a Biden-era electric vehicle (EV) program.
The law in question, known as the Impoundment Control Act of 1974, places limits on the president's power to 'impound,' or unilaterally refuse to disburse, funding appropriated by Congress.
As the administration seeks to downsize the federal government through sweeping executive actions, some observers have been expecting a showdown on the issue between Trump, who has raised questions about the law's constitutionality in the past, and the Government Accountability Office (GAO), the watchdog that oversees impoundment law.
In a May 22
On Feb. 6, the DOT announced a freeze on new EV infrastructure grants under the Infrastructure Investment and Jobs Act (IIJA) of 2021. That legislation appropriated $5 billion toward constructing new charging stations and other EV infrastructure as part of former President Joe Biden's push to rapidly phase out gas-powered vehicles.
All 50 states, as well as Puerto Rico, have sought funding under the law, the GAO reported.
Related Stories
5/20/2025
2/3/2025
The GAO said that the move to cancel funding appropriated by Congress is in violation of the 1974 law. According to the GAO, there was a 'mandate to spend' within the IIJA, so 'DOT is not authorized to withhold these funds from expenditure and DOT must continue to carry out the statutory requirements of the program.'
The revocation of new EV grants comes as the president has ordered government-wide staff reductions, withheld funds, and shuttered or merged multiple government agencies and departments in an effort to reduce the size and spending of the federal government.
These sweeping executive actions have prompted at least 39 investigations by the GAO, Comptroller General Gene Dodaro told a Senate panel in April. Multiple lawsuits from affected agencies and former employees have also been brought to court.
However, until now, there had been few major developments on the issue, with most courts that heard cases related to impoundment refusing to grant injunctions.
Party lines have already been forming, however.
Trump and his allies have made the case for broad presidential impoundment authority, saying it is a means for the president to exercise oversight on taxpayer funding and prevent wasteful spending.
Trump promised on the campaign trail to legally challenge the Impoundment Control Act during his second term.
'This disaster of a law is clearly unconstitutional—a blatant violation of the separation of powers,' Trump said in a 2024 campaign
Democrats and other critics say the president's use of impoundment transgresses congressional authority.
'From day one, President Trump has unilaterally frozen or contravened critical funding provided in our bipartisan laws,' Sen. Patty Murray (D-Wash.) said during the April hearing in which Dodaro testified.
'That is really not what the Constitution envisioned. Congress has the power of the purse, period. Our presidents cannot pick and choose which parts of a law that they can follow.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNN
35 minutes ago
- CNN
Former ‘Diddy' girlfriend reveals ‘love contract'
Former 'Diddy' girlfriend reveals 'love contract' A former romantic partner for Sean 'Diddy' Combs using the pseudonym 'Jane' described feeling financially coerced and revealed Combs is still paying for her rent, even as she testified against him at trial. Prosecutors hope the testimony by 'Jane' will drive home charges that include sex trafficking, racketeering conspiracy and transportation to engage in prostitution. Combs has pleaded not guilty to all charges. 01:30 - Source: CNN Trump on Musk: 'The poor guy's got a problem' In a phone call with CNN's Dana Bash, President Donald Trump said he is 'not even thinking about' billionaire Elon Musk and won't be speaking to him in the near future. The comments come a day after Trump and Musk traded barbs on social media as their relationship deteriorated in spectacular public fashion. 00:43 - Source: CNN No aliens here: Research disputes possible 'signs of life' on another planet In response to hints of "biosignatures" found on a world called K2-18b, new research suggests there's a lot of uncertainty surrounding the exoplanet. CNN's Ashley Strickland reports on the ongoing scientific discourse around the search for extraterrestrial life. 00:43 - Source: CNN Reporter: Trump made $1 billion in crypto in 9 months CNN's Erin Burnett talks with Forbes Magazine's Dan Alexander about President Donald Trump's stunning ownership of billions of dollars worth of crypto. 02:19 - Source: CNN Russia launches strikes across Ukraine Russia launched waves of drones and ballistic missiles at multiple targets across a broad swath of Ukraine overnight killing at least four people in the capital Kyiv and wounding around 40 across the country. 00:32 - Source: CNN See moment Trump criticized Musk in Oval Office President Trump said he was 'very disappointed' with Elon Musk, as the tech billionaire and former adviser continues to blast Trump's massive tax and spending cuts package. The bill is estimated to add $2.4 trillion to the deficit over the next decade. Musk responded on X in real-time saying that he never saw the bill before it passed and said the elimination of America's electric vehicle tax incentives has nothing to do with his opposition to Trump's bill. 01:15 - Source: CNN Minneapolis Fed official reacts to report questioning US inflation data accuracy Some economists are questioning the accuracy of recent US inflation data amid federal staffing shortages impacting the Bureau of Labor Statistics. Federal Reserve Bank of Minneapolis President & CEO Neel Kashkari discusses how he's looking at other data sets beyond BLS with CNN's Erin Burnett. 01:55 - Source: CNN Judge threatens to remove 'Diddy' from his own trial US District Judge Arun Subramanian warned the defense team for Sean 'Diddy' Combs that he will be removed from the New York City court room where he is on trial facing charges that include racketeering, sex trafficking and transportation to engage in prostitution. 01:18 - Source: CNN German leader on 'terrible' impact of Trump's tariffs In an interview with CNN's Jake Tapper, German Chancellor Friedrich Merz talks about the impact President Trump's tariffs are having on the auto industry. 01:13 - Source: CNN Do home water filters remove fluoride? Dr. Sanjay Gupta explains. CNN's Chief Medical Correspondent Dr. Sanjay Gupta answers your questions about filtering out fluoride from your tap water and explains why it's not really necessary. 01:20 - Source: CNN Chinese researchers charged with smuggling Two Chinese researchers have been charged with smuggling a "potential agroterrorism weapon" into the US in a wad of tissues, according to an FBI affidavit. CNN's Max Foster explains how laboratory testing discovered a sample containing a DNA sequence with the potential to cause a fungal disease that could decimate crops, and impact human health. 01:10 - Source: CNN Trump administration takes hundreds of migrant children out of their homes, into government custody The Trump administration is taking hundreds of migrant children already residing in the United States out of their homes and into government custody, at times separating them from their families and making it more difficult for them to be released, according to multiple sources familiar with the matter. 01:13 - Source: CNN Venezuelans in Florida react to Trump's new travel ban President Donald Trump signed a proclamation to ban travel from several countries to the US, citing security risks, with one of the countries being Venezuela. Venezuelans in Florida reacted to the ban, with one worrying about their visa. 01:14 - Source: CNN DNC Trolls Trump with Taco Truck The Democratic National Committee parked a taco truck outside the RNC headquarters in Washington DC Tuesday, as a way to troll the president over an acronym created by a Financial Times commentator about the president's frequent walk backs and pauses to his tariff's. 00:52 - Source: CNN Greta Thunberg sails to Gaza Greta Thunberg has set sail with eleven other activists to Gaza. The activist group they're part of, The Freedom Flotilla Coalition, is attempting to bring aid and raise international awareness over the ongoing humanitarian crisis in the territory. 00:59 - Source: CNN Cassie Ventura's friend testifies Diddy held her over a balcony Bryana Bongolan, a friend of Cassie Ventura who goes by Bana, testified today about an incident with Sean 'Diddy' Combs in 2016 when she said that she was 'held over a 17-story balcony' by the music mogul. CNN's Elizabeth Wagmeister reports. 01:48 - Source: CNN Record rain floods Mexico City, traps people Mexico City was hit with record rainfall that didn't relent for more than five hours Monday night, marking the heaviest rain since 2017, according to water management officials. CNN's Valeria León walks a flooded avenue of the nation's capital after emergency crews worked through the night to rescue several trapped drivers. 00:43 - Source: CNN ICE chief defends agents wearing masks during immigration raids Acting ICE Director Todd Lyons is defending federal immigration agents for wearing masks during raids across the US, citing safety concerns. The tactic has sparked backlash and raised questions about transparency and accountability. 00:58 - Source: CNN Analysis: Why Ukraine's drone attack on Russia just changed the world CNN's Jim Sciutto explains why Ukraine's large-scale drone attack on Russian air bases thousands of miles behind the front lines struck fear into the heart of every global superpower 01:05 - Source: CNN Social media video appears to show escaped inmate A video posted online appears to show Antoine Massey, one of two men who remains on the run after escaping a New Orleans jail, declaring his innocence. Deputy US Marshal Brian Fair told CNN that the US Marshals Service received the video Monday and that the agency is looking into it. 01:08 - Source: CNN
Business Insider
40 minutes ago
- Business Insider
Top U.S. Automaker Rare Earth Suppliers Receive Export Licenses from China
Last week, President Trump accused China of violating its preliminary trade deal reached with the U.S. These violations included the continued restriction of rare earth element exports, which are critical in the development of semiconductors, cars, and planes. Now, China has responded in favor of the U.S. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter China has provided temporary rare earth export licenses to suppliers of three top U.S. automaker brands, General Motors (GM), Ford (F), and Stellantis (STLA), per Reuters. This comes after Beijing imposed rare earth export restrictions in April as a response to Trump's tariffs, although the restrictions didn't apply just to the U.S. Automakers around the world had previously warned of supply chain disruptions if China continued to restrict the elements. China Eases Rare Earth Exports to Top U.S. Automakers The export licenses will be in effect for six months, with the timeline possibly set in order to respond to U.S.-China trade developments. Reuters ' sources didn't mention the quantity or exact rare earths covered through the export licenses. China holds a near-monopoly on rare earths and produces about 90% of them across the globe.
CNBC
44 minutes ago
- CNBC
Trump says China's Xi agreed to let rare earth minerals flow to U.S.
U.S. President Donald Trump said on Friday that Chinese President Xi Jinping agreed to let rare earth minerals and magnets flow to the United States, a move that could lower tensions between the world's biggest economies. Asked by a reporter aboard Air Force One whether Xi had agreed to do so, Trump replied: "Yes, he did." The Chinese embassy in Washington did not immediately respond to a request for comment. Trump's comment came one day after a rare call with Xi aimed at resolving trade tensions that have been brewing over the topic for weeks. At that time, Trump said there had been "a very positive conclusion" to the talks, adding that "there should no longer be any questions respecting the complexity of Rare Earth products." In another sign of easing tensions over the issue, China has granted temporary export licenses to rare-earth suppliers of the top three U.S. automakers, two sources familiar with the matter said. The U.S. president's top aides are set to meet their Chinese counterparts in London on Monday for further talks. "We're very far advanced on the China deal," Trump told reporters on Friday. The countries struck an agreement on May 12 in Geneva, Switzerland, to roll back for 90 days most of the triple-digit, tit-for-tat tariffs they had placed on each other since Trump's January inauguration. Financial markets that had worried about trade disruptions rallied on the news. But China's decision in April to suspend exports of a wide range of critical minerals and magnets has continued to disrupt supplies needed by automakers, computer chip manufacturers and military contractors around the world. Trump had accused China of violating the Geneva agreement and ordered curbs on chip-design software and other shipments to China. Beijing rejected the claim and threatened counter measures. Rare earths and other critical minerals are a source of leverage for China as Trump could come under domestic political pressure if economic growth sags because companies cannot make mineral-powered products. Since returning to the White House in January, Trump has repeatedly threatened an array of punitive measures on trading partners, only to revoke some of them at the last minute. The on-again, off-again approach has baffled world leaders and spooked business executives.
