It looks like the EV transition is a high priority for President Joe Biden. After the revamped tax credit rolled out in August, he made a stop at the Detroit Auto Show to announce a $900 million investment from the government toward electric vehicle
charging infrastructure. Within weeks, related projects have been approved in Washington DC, Puerto Rico, and all 50 states. Together, they will provide public charging across 75,000 miles of U.S. highways.
How do these charging stations tie into the government’s EV strategy and environmental goals overall? Jerry
, your car insurance super app, dug around to find out. Federal funding for EV charging is intentionally flexible
Biden is in a rush to get the EV charging network
up and running. By the end of the decade, he wants at least half of the new cars sold in the U.S. to be all-electric. But that shift won’t work if EV charging stations can’t be found across the country. To help speed things along, the government made approval for funding easy. InsideEVs
says the reimbursements can be used to build new stations, upgrade old ones, pay for electrical service, facilitate community engagement, develop workforces, erect signage, and much more. The $900 million Biden made available in mid-September represents a fraction of the funds set aside for EV charging in the infrastructure law
signed last year. In total, the government will spend $7.5 billion on charging stations, 10% of which will be used each year by the Secretary of Transport to make sure the network is accessible nationally.
EV charging one piece of a bigger federal picture
Biden has high expectations for the shift toward a greener economy. By 2030, the President wants U.S. emissions to drop by 50% from where they were in 2005. By 2050, he expects the country to reach net zero.
We’re a long way from any of those emissions targets
, so a lot is riding on the shift off gasoline and into electric vehicles. That might explain the rush to approve this charging station funding across the nation, not to mention the other $6.6 billion in the budget. But mitigating climate change isn’t the only reason the Biden Administration wants to spur on the shift to EVs. The transition is also integral to the U.S. holding its position as the world’s top economy.
With China and Europe well ahead of America in terms of electric vehicle adoption, Biden needs to put the pedal to the metal so-to-speak if he wants us to catch up. It’s why the new EV tax credit favors U.S.-made vehicles over imports.
MORE: There Is a Hidden Barrier to Electric Vehicle Charging Stations
Tackling the cost to own an EV in the U.S.
A few obstacles remain intact despite the U.S. government’s attempts to drive electric vehicle adoption—cost being the key factor. Despite the tax credits and lowering MSRPs of economy EVs like the Chevy Bolt, most EVs are still priced well into the luxury car bracket.
Charging is still much cheaper than filling up gas tank (especially when done at home), and maintenance needs are less frequent, but EV repairs cost a lot when they are needed, making car insurance more expensive on average than traditional vehicles.
These and other issues have many U.S. drivers holding off before switching to electric, but if you’re ready to make the change now, you can save on coverage by shopping with Jerry.
A licensed broker that offers end-to-end support, the Jerry app gathers affordable quotes, helps you switch plans, and can even help you cancel your old policy. The average Jerry user saves over $800 a year on car insurance.
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