Tennessee’s rural communities and the state’s flowering electric vehicle industry have been heavily boosted by federal cash injections under former President Joe Biden’s administration.

Tennessee has added a total of $10.3 billion from the 2022 Inflation Reduction Act (IRA) and the 2021 Bipartisan Infrastructure Act (BIL) to Safer Roadway. New State Forest, Historical property preservation, Railway improvements and Energy Efficiency Grants To help businesses and farms save thousands of dollars through equipment upgrades and solar installations. Data maintained by the Biden administration shows that many programs will be allocated at the state or metropolitan level, potentially funding multiple projects.

Trump’s first inauguration action included issuance Presidential Order It orders federal agencies to “suspend payments immediately” under two measures, causing uncertainty for the infrastructure and clean energy projects they support.

Trump administration memo announces a sharp freeze over a wide range of federal payments

White House office for management and budget A memo has been issued The next day, it will make clear that the moratorium only applies to funding for programs that support electric vehicles and other clean energy items that will be implemented against Trump’s policy priorities.

Another OMB memo sent Monday ordered a suspension of federal grants and loans, leading to massive disruption and spurring a coalition of nonprofits File a federal lawsuit. The White House later said the order was directed towards priorities outside Trump’s agenda, rather than “blanket pause.” Federal judge Temporarily blocked Part of the Trump administration’s federal grants and loan freeze on Tuesday prevented funding from being curbed for already-recognised awards until at least 5pm on Feb. 3.

Memphis Rep. Steve Cohen He was the only Tennessee representative to sign Letter to OMB on January 27th Alongside dozens of other members of Congress, they are requesting an itemized list of programs, projects and activities that will be put on hold due to an order to suspend Trump’s funds. The OMB memo issued after Trump’s order did not provide sufficient clarity about “specific funds this administration is unconstitutional and withholding.”

“The executive order will use this fund to build new roads, secure bridges, replace lead pipes, expand broadband access and strengthen infrastructure against natural disasters across the country. It is a source of great anxiety for the community and businesses.” “Thousands of projects are already underway in both the public and private sectors, but their completion depends on these funds, which have already been approved by Congress and have been enacted by law.”

The electric vehicle manufacturing hub, which has chosen to be located in Tennessee and the state, benefits from a mix of loans, grants and tax credits designed to support the growth of the US electric vehicle and battery industry . Analysts say these prongs are working together to strengthen both supply and demand for electric vehicles. Rollback creates uncertainty On the strength of Tennessee’s industry.

Representatives from Governor Bill Lee and Rep. David Kastoff, who represent most of West Tennessee, were asked about how funding suspensions and rollbacks would affect related Tennessee projects. He didn’t answer.

It is not yet clear how much money will be affected by Trump’s order. Biden’s administration About 84% obligation ($97 billion) Clean Energy grants created by the IRA before Trump took office to protect grants from the promised clawback. Other programs, such as energy efficiency and electric vehicle tax credit, require action from Congress to be withdrawn.

“For the public, we are in a really difficult place to understand what this executive order actually means.” Adie Tommera senior fellow at Brookings Metro told Tennessee Lookout. Tomer is a non-profit, nonpartisan think tank based in Washington, D.C., with a focus on transportation and infrastructure policies

Trump’s executive order reflects his administration’s priorities, Tommer said, but many people demand legislative measures to enact and suspend funds without Congressional support. Legal issues.

According to Tomer, it remains one big unknown:

“Is the Trump administration really willing to deliver what Congress demands they do and forces them to engage with the judicial department?”

Electric vehicle charger allows pause

One program appears to be in Limbo. It is the National Electric Vehicle Infrastructure Program that allocated billions of dollars to install electric vehicle chargers across the US.

Nevi allocated $88 million to Tennessee to fund the installation of the charger for five years. Nation Awarded $21 million Installed on 10 applicants in January 2024 30 new charging locations Along the main corridor.

Tennessee Department of Transportation Community Relations Director Beth Emmons said the department is aware of Trump’s orders. TDOT is awarding federal funds to EV charging stations, but the contracting process has not yet ended, she wrote in an email.

“The President’s Executive Order calls for review of processes, policies and programs related to this fund within the next 90 days. We are still working on contract terms and the timing of this funding program’s decision is , we believe we will be known when we are ready to enter into an official contract,” Emmons wrote. “We welcome reviews and are keen to support the proper investment that offers transportation options to residents and those traveling around Tennessee.”

October Report on Electric Transport The Southeastern states have shown Tennessee ranked near the top of the list for expected work and investment, but since 2023, the number of publicly accessible vehicle chargers has grown rapidly. Despite this, the state is lagging behind per capita chargers.

The challenges that make the EV charging business even more challenging will be multiple presidential diseases, said Ryan McKinnon, a coalition of companies pushing to expand the U.S. EV charging market.

“Private companies across Tennessee have invested millions of dollars to participate in the NEVI program. They have signed contracts, protected their property, worked with grant writers and entered the EV charging business. It took years to prepare for the “No one is happy with how long it took Nevy to get off the ground, but it’s now that he’s pausing the program, and finally, EV charging. It just hurts private companies that are the backbone of the market.”

Where rubber meets the road

In the Tennessee electric vehicle market, manufacturers’ tax credits and loans represent a large portion of IRA incentives for EV and battery production, Tomer says.

The tax credit could only be revoked by Congressional actions, but even so, questions remain about the impact on non-official loans.

these Low-cost loans It has reinforced some of Tennessee’s biggest manufacturing projects in the past few years, including Ford. Blueoval City and Blueoval SK Battery Plant Countryside in West Tennessee. The Loan Program Office recently finalized Blueoval SK to loans up to $9.2 billion under the IRA to build three battery plants in Tennessee and Kentucky.

Ultium Cell has $2.5 billion active loans for three lithium-ion battery manufacturing plants, including one in Spring Hill.

Other loans are still marked as “conditional” including a $754.8 million loan To Novonix Limited, Chattanooga Plant, which manufactures graphite for EV batteries.

“The conditional decision point means that Trump staff now have the power to raise funds to move forward — absolutely threatened,” Tommer said.

Novonix did not respond to requests for comment.

Tomer also distinguishes rhetoric from reality. While the IRA and BIL face criticism and attempts to roll back, “behind these investments there is a real bipartisan constituency,” he said.

“There are places where you’ve actually looked at your state and have been dealing with levels of economic pain and headwinds for decades. When you gain economic momentum, it’s a very different proposition to say you’re going to pull it back. It will be,” Tommer said.