The federal electric vehicle mandate was once a driving force behind a major shift in the transportation and energy sectors. Designed to speed up the transition to electric vehicles, the mandate created opportunities for electrical contractors and commercial property managers by fueling demand for EV charging infrastructure across public and private spaces. But in early 2025, the federal government announced a major policy change—a nationwide pause on that mandate.

Now, contractors and property managers are left adjusting plans and rethinking investments. This article breaks down what the electric vehicle mandate originally aimed to accomplish, how the pause is being implemented, and what this shift means for electrical contractors and commercial properties that were betting on the EV transition.

What Is the Electric Vehicle Mandate?

The electric vehicle mandate refers to a set of federal policies, goals, and funding programs that were launched to accelerate electric vehicle adoption in the United States. These efforts included:

• Federal targets to electrify large portions of the U.S. government’s vehicle fleet by 2030.
• Incentives for automakers to increase EV production.
• Massive funding through the National Electric Vehicle Infrastructure (NEVI) program to build a nationwide network of EV charging stations.
• General Services Administration (GSA) directives encouraging and funding the installation of charging infrastructure at federal buildings.

For electrical contractors, these policies created strong, sustained demand for EVSE (Electric Vehicle Supply Equipment) installation services. Property managers, particularly those operating federal or mixed-use commercial sites, saw this as an opportunity to future-proof properties and attract tenants or employees with EVs.

The Electric Vehicle Mandate Pause

On January 30, 2025, the White House issued a directive titled “Unleashing American Energy”, which formally paused enforcement of the electric vehicle mandate and other climate-related regulations tied to transportation. According to the directive published by the White House, the decision was based on concerns about rising consumer costs, unstable mineral supply chains, and limited charging infrastructure—particularly in rural areas.

The policy shift ended the requirement for federal agencies to meet aggressive EV fleet targets and halted mandates that were pushing automakers toward a faster transition. It also rolled back rules that had incentivized EV purchasing and manufacturing on a federal level. Instead, the administration announced a return to what it described as an “all-of-the-above” energy strategy—one that includes fossil fuels, traditional vehicles, and a slower path toward electrification.

This high-level change triggered ripple effects throughout the federal government and among the contractors and property managers who relied on those mandates to drive project demand.

GSA Directive: EVSE Projects Put on Hold

Following the White House’s lead, the General Services Administration (GSA) released Directive PBS 5605.1B in March 2025. This directive formalized the pause of all pending EVSE projects that had not yet been awarded or were not deemed critical. According to the directive, any federal building projects involving EV charging stations must now undergo a new, stricter justification process.

Instead of pushing for widespread deployment, the GSA will now prioritize “need-based” installations. Agencies must demonstrate actual usage demand, cost-effectiveness, and alignment with core mission requirements before EV infrastructure can be approved. Projects already under construction may continue—but only if they are deemed necessary or are protected under existing contracts.

For contractors and commercial property managers who were coordinating on federal charging station buildouts, this directive represented an immediate pause or cancellation of previously planned work.

$3 Billion in EV Charging Funds Frozen Nationwide

Beyond internal federal projects, state and local governments were also hit hard by the pause. According to a February 2025 NPR report, the U.S. Department of Transportation froze the distribution of nearly $3 billion in NEVI program funds that were earmarked for public EV charging stations.

This funding freeze disrupted a wide range of state-level initiatives. Many states had already drafted plans and selected contractors to build highway corridor chargers and public infrastructure. Some had committed local funding based on federal matching grants and were just weeks away from launching new projects.

States now find themselves in limbo, particularly those with lower tax revenues or rural regions that depended heavily on federal support to justify building EV infrastructure. Projects have either been paused indefinitely or canceled altogether.

Impact on Electrical Contractors

Electrical contractors—especially those that specialize in EVSE installation—are among the most directly affected by the electric vehicle mandate pause.

In a March 2025 NPR report, several contractors shared that EV charging projects tied to federal and state funding have either been canceled or placed on indefinite hold. Many of these companies had scaled up staffing, invested in training and certifications, and partnered with EVSE manufacturers in anticipation of years of consistent project volume.

Now, with the federal pipeline cut off, firms are facing:

• Sunk Costs: Investments in workforce training, fleet upgrades, and compliance programs may not see a return.
• Layoffs: Some contractors are beginning to cut back staff or reassign crews to less profitable work.
• Cash Flow Challenges: Projects that were already in planning or permitting phases have been halted, putting financial pressure on smaller firms that rely on steady government work.
• Business Strategy Revisions: Contractors that had structured business development pipelines around federal contracts must now look for private sector or state-led opportunities to stay active in the EVSE market.

What This Means for Commercial Property Managers

Commercial property managers—especially those working on government facilities, multi-tenant office buildings, or retail centers—also face new challenges. Many were planning to install EV chargers based on projected demand and access to federal incentives. Now, those plans may need to be delayed or restructured.

Key considerations include:

• Grant Dependency: If your project depended on NEVI or GSA funding, it may no longer be viable under current budgets.
• Demand Evaluation: Without federal mandates pushing adoption, EV usage growth may slow in some regions, making it harder to justify short-term ROI.
• Permitting and Design Changes: Some projects already in progress may need to be redesigned to meet new compliance or cost guidelines.

While demand for EV charging in commercial spaces isn’t disappearing, the timeline for returns may now stretch further into the future. Property managers who still want to move forward with EVSE installations will likely need to rely more on private partnerships or state-level support.

What’s Next for the EVSE Market?

Although the federal electric vehicle mandate has been paused, interest in electric vehicles hasn’t vanished. Several states—particularly those with aggressive clean energy targets—are continuing their own EV infrastructure rollouts. California, New York, and Colorado have all indicated that they will maintain or even increase EV investments at the state level.

Private companies and fleet owners are also continuing their transitions to EVs. Logistics firms, last-mile delivery services, and commercial real estate developers are still looking for charging infrastructure—but with a more cautious eye on costs and reliability.

For contractors and commercial property managers, the key is flexibility. Opportunities in the EVSE market may still exist, but they will likely come through more competitive bidding and localized funding channels rather than federal mandates.

Conclusion

The pause of the electric vehicle mandate has caused a significant shift in the EV infrastructure landscape. For electrical contractors, it has disrupted a growing source of revenue and forced many to reallocate resources or rethink business strategies. For commercial property managers, it raises new questions about infrastructure planning, budgeting, and demand forecasting.

While the long-term outlook for EV adoption remains positive, the near-term reality is one of uncertainty and reevaluation. Staying informed, pursuing diversified funding sources, and remaining adaptable will be essential for contractors and property managers navigating this evolving landscape.

For more of the latest industry news, trends, and contractor insights, visit Property Manager Insider. Whether you’re looking to stay ahead of market changes or connect with decision-makers, Property Manager Insider is a trusted resource for commercial contractors and property managers. Use BidSource, our free tool, to connect with property and facility managers actively searching for qualified contractors to complete upcoming projects.