DOT to ignore GAO ruling

White House directs DOT to ignore GAO ruling on EV funding pause

The letter from the Office of Management and Budget’s general counsel called the congressional watchdog’s ruling “wrong and legally indefensible.”

By Chris Marquette

The White House’s Office of Management and Budget told the Transportation Department on Tuesday to disregard a ruling by the Government Accountability Office that the Trump administration violated the law by freezing electric vehicle funding.

Mark Paoletta, OMB’s general counsel, in a letter to DOT called the congressional watchdog’s ruling “wrong and legally indefensible.”

The letter responds to the GAO’s report that found DOT broke the law by withholding money already approved by Congress for the $5 billion National Electric Vehicle Infrastructure program, which was funded by the 2021 bipartisan infrastructure law.

Paoletta contends DOT’s recording of obligations for the NEVI program complied with the statutory language that created the program and was aligned with DOT past practices regarding other highway formula programs. He also argues DOT didn’t violate the Impoundment Control Act by rescinding the Biden administration’s NEVI program guidance and “temporarily pausing new obligations until new guidance could be issued.”

Further, he notes DOT does not need to “take any action to adjust the recording of its NEVI program obligations, nor change its practices with respect to obligating funds for any of its [Federal Highway Administration] programs in response to GAO’s incorrect opinion.”

The GAO in its report said the White House needs to send a recissions request to Congress to make changes to funding mandates already in law. The watchdog also said DOT incorrectly interpreted the way funds were obligated under the program.

The Paoletta letter called the report “part of a troubling trend of partisan opinions” by the GAO.

“Your agency, and all Executive Branch agencies, should not feel compelled to cooperate at all with GAO in its efforts to thwart President Trump’s agenda, nor give any weight or deference to GAO’s opinions,” he wrote.

Sarah Kaczmarek, a spokesperson for GAO, said the agency disagrees with OMB and stands by its ruling.

“We stand behind our analysis and conclusion for both the appropriations law issue for recording obligations in the NEVI program and the illegal impoundment of funds under the ICA,” Kaczmarek said in a statement. “GAO’s work in this area, as with all of GAO work, is non-partisan, independent, and consistently follows a process that allows agencies to provide their views.”

Nathaniel Sizemore, a DOT spokesperson, said GAO’s report “conflicts with Congress’ intent, and completely misunderstands the Federal-aid highway program and how Congress structured the NEVI program.”

The GAO’s assessment also is “at odds with its own reports on how Federal-aid Highway programs similar to NEVI receive and use appropriated funds,” he said, adding the agency is updating the NEVI program guidance because its implementation failed.

OMB Director Russell Vought is scheduled to testify before the House Appropriations Committee Wednesday on the Trump administration’s budget.