Trump’s $7 Billion Gamble: Selling Off Government EVs Could Cost Taxpayers Big

Written by Camilla Jessen

Mar.06 - 2025 8:58 AM CET

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Photo: YES Market Media / Shutterstock.com
Photo: YES Market Media / Shutterstock.com
Trump’s move to ditch 25,000 government EVs could cost taxpayers a staggering $7 billion.

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Former President Joe Biden made electric vehicles (EVs) a core part of his administration’s climate strategy, investing heavily in electrifying the federal fleet.

Now, Donald Trump is reversing course, ordering the sale of 25,000 government-owned electric cars and dismantling thousands of charging stations.

As reported by Boosted, this move could cost U.S. taxpayers up to $7 billion.

A Fire Sale at a Loss

The U.S. government’s EV fleet, worth $300 million, is about to flood the market.

But selling that many cars at once will drive prices down, forcing the government to take a 25% loss just to get rid of them. That alone would mean a $225 million hit, according to anonymous government sources cited by Politico.

Then there’s the charging infrastructure.

Trump has ordered thousands of charging stations—installed at government offices and public buildings—to be removed.

This alone is estimated to cost $100 million.

A Bigger Price Tag Than Expected

The real kicker? The U.S. will need to replace those 25,000 vehicles.

Since Trump is phasing out EVs from the government fleet, those replacements will likely be gasoline-powered cars, with an estimated price tag of $700 million.

And that’s not even the biggest financial blow.

According to InsideEVs, a report from consulting firm ICF estimates that keeping the EV fleet would have saved the government $6 billion in fuel and maintenance costs over time. That’s money now wiped off the table.

Who’s Really Paying the Bill?

The total cost of Trump’s EV rollback—over $7 billion—will ultimately fall on taxpayers. But Trump’s administration may try to shift some of the burden elsewhere.

He has already slapped a 25% tariff on vehicles from Canada and Mexico, and hinted at similar tariffs for European automakers unless they move production to the U.S..

Whether that strategy offsets the loss—or just triggers a trade war—remains to be seen.