H.R. 3972: Highway Funding Flexibility Act of 2025

This bill, titled the Highway Funding Flexibility Act of 2025, aims to amend how certain federal highway funds, specifically those associated with electric vehicle (EV) charging infrastructure programs, can be used. The key points of the bill are as follows:

1. Fund Optimization

The bill allows unobligated funds from the National Electric Vehicle Infrastructure Formula Program to be directed toward traditional highway projects instead. This includes:

• Construction, reconstruction, resurfacing, restoration, rehabilitation, or preservation of federal roads.
• Bridge projects that require replacement, rehabilitation, or maintenance.
• Improvements to prevent wildlife-vehicle collisions, including building wildlife crossings.
• Projects to enhance parking for commercial vehicles.
• Preliminary engineering or design services related to these projects.

2. Future Funding Distribution

For fiscal years following the enactment of this bill, any funds allocated to the EV infrastructure program will be distributed to states on October 1 of each fiscal year. The states must use these funds according to the guidelines provided in the bill.

3. Set-Asides and Special Grants

The bill establishes a framework for set-asides from the program's unobligated amounts for both the Joint Office of Energy and Transportation and for grants to assist states or localities in deploying electric vehicle charging infrastructure. These funds will also follow the same distribution model as mentioned above.

4. Treatment of Funds

Funds governed by this bill will not be subject to federal limitations that usually apply to highway construction. This means that they can remain available for use longer and will be in addition to existing funding allocations.

5. Requirements for Fund Use

Any amounts allocated under the bill will be managed under existing federal guidelines with respect to highway funding and will be applicable to ongoing federal requirements.

6. Grant Program Optimization

The bill includes provisions for grant programs related to charging and fueling infrastructure. Unobligated amounts in this context will be redistributed to the states, adhering to similar guidelines and restrictions as other funds mentioned in the bill.

Overall, this legislation appears designed to provide greater flexibility in the allocation of federal funds previously earmarked for electric vehicle charging infrastructure so that they can be utilized for more immediate highway and infrastructure needs.

Relevant Companies

• TSLA: Tesla stands to benefit as a major player in the electric vehicle market and charging infrastructure; increased funding may lead to higher demand for their products.
• CHPT: ChargePoint designs and operates EV charging stations; changes in funding and infrastructure investments could impact their business growth and deployment strategy.
• ABB: Known for providing electrical equipment and automation solutions, ABB may see changes in the demand for their EV charging solutions based on increased infrastructure funding.