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A shift to electric transportation will reduce the economic, national security, and public health impacts that stem from the United States’ dependence on oil. Committing to building electric transportation domestically will create new jobs, revitalize the American manufacturing sector, reap financial savings for consumers and fleet operators, and secure supply chains for critical military and industrial technologies.
Policies and programs implemented through the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA) establish U.S. leadership in electric transportation and maintain our global competitiveness in the automotive industry by investing hundreds of millions into the EV sector. Critically, they bolster U.S. manufacturing and supply chains to support the transition for both the light-duty and medium- and heavy-duty sectors, securing a steady supply of the materials and manufacturing expertise used in a wide range of military and industrial technologies.
The Electrification Coalition has long advocated for federal policies to accelerate the adoption of EVs. These policies can be categorized into four core pillars:
Tax credits for all vehicle types (light-, medium-, and heavy-duty) are spurring market growth by reducing the higher upfront costs of EVs. They also signal to manufacturers, consumers, and fleet operators that the United States is prioritizing an electric transportation future, allowing businesses to invest confidently in American EV manufacturing. The IRA created a long-term extension of the Section 30D tax credit for light-duty vehicles, a new commercial EV credit (Section 45W), and a used EV credit (Section 25E). The IIJA created a Clean School Bus program, with $2.5 billion in dedicated funding for the purchase or lease of electric school buses.
These policies have already attracted hundreds of billions in EV manufacturing investments, helping to generate nearly a quarter million new jobs, revitalizing our automotive manufacturing base in the Midwest, and creating a new, thriving “Battery Belt” in the Southeast. Rolling back these policies would pull the rug out from under U.S. automakers who have invested heavily in the transition, stranding billions of dollars of assets and driving future investments to our geopolitical adversaries—irreparably damaging our ability to compete in the interconnected energy, transportation, information, and AI industries.
Consumers, businesses, fleet operators, and drivers need adequate access to EV charging infrastructure. The IIJA included $5 billion for the National Electric Vehicle Infrastructure (NEVI) program to build a network of EV charging along highways (alternative fuel corridors). It also provided another $2.5 billion for the Charging and Fueling Infrastructure (CFI) program to build charging infrastructure. At least 50% of the funding under the competitive grant program must be put towards communities, with priority given to low-income and rural communities.
The IRA also included a long-term extension of the Section 30C Alternative Fuel Vehicle Refueling Property Credit through 2032. The Section 30C credit was also modified to allow for bidirectional charging stations to qualify for the credit. With these programs and this credit, the U.S. is on its way to meeting the demand for charging infrastructure as adoption grows; without them, infrastructure deployment is likely to lag behind the deployment of vehicles, depriving drivers of vital infrastructure and slowing the pace of adoption.
The U.S. government can lead by example while reducing operational costs by electrifying the federal fleet, including U.S. Postal Service vehicles. Government fleets do not consider the total cost of ownership (TCO) when determining which vehicles to purchase. Requiring that this methodology be used in fleet vehicle replacement would ensure that any upfront price of EVs and charging infrastructure is appropriately balanced with EVs’ benefits (I.e., lower maintenance and fuel costs compared to gas and diesel vehicles). The EC suggests that the TCO methodology be used to replace vehicles within the government fleet, including non-tactical military vehicles.
The EC strongly encourages each agency to establish, uphold, and track the progress of realistic yet ambitious fleet electrification efforts and supports a bold allocation of funding to invest in this transition. The IRA included $3 billion to electrify the federal fleet, but more is needed to complete the transition and save federal agencies money.
The IRA and IIJA included multiple policies and programs to promote the U.S. manufacturing and supply chain of these clean vehicles. Policies in the IIJA include $6.135 billion for battery material processing, manufacturing, and recycling grants. Policies in the IRA include $10 billion for the Section 48C manufacturing tax credit, with specific inclusion for applicable EV projects; a new Advanced Manufacturing Production Credit (Section 45X) for the manufacturing of batteries and critical minerals facilities; $3 billion for the Advanced Technology Vehicle Manufacturing program with specific incentive amounts for battery and critical minerals production; and $2 billion for the Domestic Manufacturing Conversion Grant program.
© 2025 ELECTRIFICATION COALITION
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Amy Malaki is the head of policy and sustainability at SkyNRG and SkyNRG Americas, pioneering global leaders in sustainable aviation fuel production and supply. Prior to SkyNRG, Amy was the associate director for the transportation portfolio at the ClimateWorks Foundation where she developed philanthropic investment strategies to advance a sustainable, equitable and low-carbon mobility system. She also pioneered the organization’s international aviation decarbonization strategy. Prior to that she focused on Asia business development at Better Place, a Silicon Valley electric vehicle network startup. She has a B.A. in Chinese and China studies from the University of Washington and an M.A. in international policy studies (energy and environment) from Stanford University.