Billions in federal investments energize zero-emission trucking

The need to transition to zero-emission medium and heavy-duty vehicles is urgent. Today, most of these vehicles run on diesel, which has massive consequences for human health. Thankfully, fleets have been embracing this challenge. In 2024, fleets again added a record number of EVs into their operations.

As we look towards 2025 and beyond, there is more funding available than ever before to help fleets make the transition to medium- and heavy-duty electric vehicles. These astounding investments are key to unlocking progress in the sector. Much of this funding is thanks to the Infrastructure Investment and Jobs Act and the Inflation Reduction Act. These laws, focused on modernizing America’s infrastructure while addressing local air pollution, climate change and promoting clean energy, have allocated billions of dollars for electric vehicle infrastructure.

Since the start of 2024 alone, several key grants have awarded nearly $8.2 billion to develop charging infrastructure and help fleets transition to zero-emission medium and heavy-duty vehicles. These investments are in addition to critical tax credits and manufacturing grant programs contained in the IRA.

Charging and Fueling Infrastructure Program, nearly $2 billion awarded: Through three announcements, including a third round of funding announced in early January 2025, the CFI program has allocated nearly $2 billion in funding for the development of charging station infrastructure across the U.S. At least $780 million have been awarded to projects that support corridor charging, much of it including medium or heavy-duty vehicles. Several awards under this program support the development of priority corridors identified through the National Zero-Emission Freight Corridor Strategy.

Billions in federal investments energize zero-emission trucking Share on X

Climate Pollution Reduction Grants, $1.18 billion awarded: CPRG awarded nearly $5 billion in grants to states, local governments, tribes and territories to develop and implement ambitious plans for reducing greenhouse gas emissions and other harmful air pollutants. In 2024, $1.18 billion of the allocated funds went to EV infrastructure and charging accessibility projects.

Low and No Emission Grant Program, almost $600 million awarded: The Federal Transit Administration’s Low or No Emission competitive program provides funding to state and local governmental authorities for the purchase or lease of zero-emission and low-emission transit buses as well as acquisition, construction and leasing of required supporting facilities. In total, nearly $1.5 billion was awarded for these projects, with over one third of funding going directly to electrification projects.

Clean Ports Program, $2.7 billion awarded: The Clean Ports Program is aimed at reducing pollution around major ports by promoting cleaner energy sources, upgrading equipment and enforcing emissions standards. The program will help improve air quality and public health in surrounding communities. Over $2.7 billion was awarded in 2024 for projects focusing on infrastructure, electric cargo equipment and electric drayage trucks. Efforts in Florida, Illinois, Michigan, New Jersey, Ohio, Pennsylvania and Texas are among the projects to receive funds.

Clean School Bus Rebate Program, $900 million awarded: A third round of Clean School Bus funding announced $900 million in awards across 530 school districts. This funding will help school districts purchase an estimated 3,400 new zero-emission school buses, the vast majority of which will be electric. These funds will help improve air quality for over 1,000 schools in the U.S.

Reduction of Truck Emissions at Port Facilities Grant Program, $125 million awarded: The Reduction of Truck Emissions at Port Facilities program awarded funding to reduce emissions at ports, with a focus on port electrification projects. $125 million of the more than $150 million in funding announced was allocated to electrification projects, including charging infrastructure installation and the purchase of medium- and heavy-duty electric trucks.

Clean Heavy-Duty Vehicle Program, $735 million awarded: EPA’s CHDV Program provides grant funds to support the purchase of zero-emission Class 6 and 7 vehicles, related charging and fueling infrastructure, driver and mechanic training and implementation costs. The program aims to reduce pollution in neighborhoods, accelerate environmental justice efforts in overburdened communities and develop more clean energy jobs.

Following EPA’s initial grant announcement for the CHDV Program, EDF hosted technical assistance trainings on critical steps and best practices to help fleets assemble strong application materials for the grant opportunity. EDF’s grant application guidance can help fleets looking to deploy electric vehicles and infrastructure stay at the ready for any applicable funding opportunities that arise. Additional resources to support fleet electrification are available on EDF’s Fleet Electrification Solution Center, a free roadmap for fleets on the electrification journey.

In addition to grant funding, several tax incentives supporting the deployment of zero-emission medium and heavy-duty vehicles have advanced over the past year. The Internal Revenue Service issued guidance for the Alternative Fuel Infrastructure Tax Credit (30c), which supports fleets to build out electrification infrastructure; and the Commercial Clean Vehicle Credit (45w), which provides a credit of up to $40,000 for the purchase of zero-emission medium- and heavy-duty vehicles.

Looking towards a zero-emission future

The combined impact of these programs and credits is billions of dollars of investment to support zero-emission trucking. This investment comes at a critical time when the urgent need to move away from diesel is clearer than ever and zero-emission solutions are rapidly developing. These investments have been strategically focused on addressing critical challenges, such as building sufficient charging infrastructure and targeting near-term deployments to drive local air pollution benefits.

These funds also help set up future success. Dedicated corridor infrastructure funding, for example, supports a national strategy for the development of charging networks, and could help bolster private MHDEV deployment, particularly in underserved and overburdened areas that would benefit the most from electrification.

With the record numbers of vehicle deployments and significant federal dollars matched with billions in private-sector investment, the trucking industry is well positioned to lead a transition to a cleaner future. Siezing this opportunity, though, will require industry leaders to recognize the important role these programs have in enabling the transition to zero-emission solutions and engage with policymakers to maintain and build upon these programs.

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