The Highway Funding Flexibility Act of 2025 would permit unobligated funds from the National Electric Vehicle Infrastructure Formula Program (NEVI) to be redirected toward Federal-aid highway projects. Eligible uses include construction and maintenance of highways and bridges, as well as wildlife-crossing structures and parking for commercial motor vehicles, along with design-related services directly tied to these projects.
The bill also creates set-asides for a Joint Office and for targeted grants to strategically deploy EV charging, and it provides future-year distributions to States in a formula-based manner. It requires that these funds be administered under the same framework as other highway funding when apportioned, while explicitly not counting against existing obligation limitations.
Taken together, the Act re-purposes a portion of EV charging funding to accelerate traditional highway improvements, while preserving mechanisms to advance charging deployment through targeted grants and a Joint Office. It settles a model for distributing unobligated funds going forward and anchors the program in established highway law, ensuring predictable state allocations and continued compliance with federal highway provisions.
At a Glance
What It Does
Notwithstanding other law, unobligated NEVI funds are redirected to specific highway uses (bridges, resurfacing, wildlife crossings, CMV parking) and future-year distributions follow existing apportionment formulas. A set-aside structure directs a portion to a Joint Office and targeted grants.
Who It Affects
States, State DOTs, MPOs, localities, highway contractors, and agencies responsible for bridges, wildlife management, and CMV parking infrastructure.
Why It Matters
Provides immediate flexibility to fund high-priority highway projects while maintaining a path to expand EV charging where it is most needed through grants and a dedicated Joint Office.
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What This Bill Actually Does
Section 2 consolidates the Highway Infrastructure funding landscape by redefining the NEVI program’s unobligated funds as eligible for a narrow set of highway projects. It defines NEVI funds as part of a broader National Highway program and sets out the specific uses that qualify for reallocation, including highway construction and reconstruction, bridge projects (including rehabilitation and replacement), wildlife-crossing structures, and parking for commercial vehicles.
It also allows for the use of related design and engineering work tied to these projects, ensuring a practical link between planning and execution.
The bill requires the Secretary to distribute any unobligated NEVI funds in a manner consistent with the existing 23 U.S.C. apportionment framework, and to keep these funds available and in addition to other highway funding streams. For future years, the same approach applies, with distributions calculated on the October 1 formula for each fiscal year.
A set-aside mechanism channels some funds to a Joint Office and to states or localities that need targeted help to deploy EV charging strategically. The Act also includes explicit treatment provisions, ensuring funds are administered like other Federal-aid highway money and remain subject to established requirements.Section 3 mirrors Section 2’s logic for the charging and fueling infrastructure grant program, defining the program and the Secretary, and directing unobligated program funds to States in proportion to their statutory apportionments.
It clarifies that these funds are to be used for the same purposes described in Section 2(b)(1)(A) and that future-year distributions will follow the same pattern. The section preserves the requirement that funds be treated under existing highway law and maintain consistency with IIJA provisions, ensuring a coherent, compliant funding approach across both NEVI and related charging programs.
The Five Things You Need to Know
The bill allows unobligated NEVI funds to be used for highway projects (e.g.
highways, bridges, wildlife crossings, CMV parking) and related design work.
Distributions to States are determined by the same apportionment ratio used for existing highway funding (104(c) and 165 amounts).
A Joint Office and targeted grant programs receive unobligated funds as set-asides to support deployment of EV charging in strategic locations.
Future fiscal years’ NEVI-like funds are distributed on October 1 according to the same state apportionment framework and used for the described highway purposes.
Funds described in the act are not subject to standard obligation limitations and remain available as additions to existing highway funding streams.
Section-by-Section Breakdown
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Definitions and General Purpose
Defines key terms (Program as NEVI formula, Secretary as DOT Secretary, State per 23 U.S.C. 101(a)) and sets the overarching aim of optimizing NEVI funds for highway infrastructure while preserving a path for EV charging deployment through targeted use.
Optimization of NEVI Funds—General Use
Notwithstanding other law, unobligated NEVI funds may be used for enumerated highway purposes: highway construction, bridge projects in the National Bridge Inventory, wildlife crossing structures, parking for CMVs, and related design or engineering work. A prohibition exists on using funds for other purposes outside these categories.
Set-Asides and Future Distributions
Creates set-asides for the Joint Office and for grants to states/localities needing assistance to deploy EV charging. Future-year funds will be distributed to states on October 1 according to the same apportionment framework used for current NEVI allocations, and used as described in the section.
Treatment and Requirements
Funds under these provisions are not subject to obligation limitations, remain available for the period applicable to the original program, and supplement but do not replace other funding under 23 U.S.C. Section 104(c) and 165.
Optimization of Charging and Fueling Grants
Defines the grant program’s scope, with unobligated grant funds distributed to states in proportion to 23 U.S.C. 104(c) and 165, for uses consistent with Section 2’s purposes. Requires administration under existing highway law and IIJA provisions, with a parallel structure to Section 2 for future-year funding and use.
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Explore Infrastructure in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- State Departments of Transportation and state-level planning organizations (MPOs) gain flexibility and a clearer funding path for prioritized highway projects.
- Local governments and regional planning authorities receive targeted funding to deploy EV charging where it’s most needed.
- Bridge authorities and highway infrastructure agencies can accelerate replacement, rehabilitation, or modernization of critical assets.
- Highway contractors and engineering firms gain predictable project opportunities and funding for construction, bridges, and related upgrades.
- Wildlife management agencies and transportation planners can fund wildlife crossings and related safety projects.
- Commercial vehicle operators and fleets benefit from expanded CMV parking infrastructure in highway networks.
Who Bears the Cost
- State DOTs and localities incur administrative costs to reallocate funds and manage new reporting requirements.
- Federal and state agencies may face increased oversight and compliance burdens to ensure proper use and accounting of redirected funds.
- EV charging providers and investors may experience shifts in funding priorities, potentially delaying some charging deployments.
- Some EV charging expansion opportunities may be deferred in favor of accelerating highway projects, creating opportunity costs for EV infrastructure goals.
- Taxpayers bear the opportunity cost of alternative uses of NEVI funds if highway projects crowd out EV charging investments.
Key Issues
The Core Tension
The central dilemma is balancing the policy objective of expanding EV charging infrastructure with the need to accelerate highway modernization using NEVI funds, without undermining either objective.
The act creates a policy tension between continuing expansion of the EV charging network and accelerating traditional highway infrastructure using NEVI funds. While the set-asides and Joint Office provide a mechanism to preserve EV charging ambitions, the primary reallocation of unobligated NEVI funds toward highways could dilute the firepower behind domestic EV charging deployment.
The approach relies on existing apportionment formulas to distribute funds in future years, which may affect states differently depending on baseline allocations. Administrative complexity increases as funds are routed through set-asides and state-by-state distributions rather than a single programmatic stream.
Questions remain about how replenishment, performance metrics for EV charging, and inter-program competition will interact with ongoing highway program obligations and reporting regimes.
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