The Charge Up New Jersey program has already given out an estimated $35 million.
The Associated Press reports that the state of New Jersey's EV rebate program will temporarily be unable to subsidize EV purchases and leases “because the state program is so popular that it's already running out of money,” according to officials.
For the fiscal year ending July 2023, the state's Board of Public Utilities reveals that the Charge Up New Jersey program has disbursed an estimated $35 million. The board has been forced to put the program on pause for the time being because all the money earmarked for the program will soon be used up if the current rate of application approvals and eligible vehicle orders maintains its momentum.
The program is in its third year and offers state residents as much as $4,000 when buying or leasing a new electric vehicle. NJ's utility board predicts more than 10,000 vehicles this fiscal year will be acquired with the support of the program and that the program will be able to restart in the new financial year, starting July 1. However, a spokesperson for the Board of Public Utilities, Peter Peretzman, said he was unsure if more funding will be earmarked for the program.
While incentives like this help to spur the adoption of electric vehicles, drastic price increases undo a lot of that good. For example, the Ford F-150 Lightning now costs no less than $61,869, an increase of roughly 20 grand since it was launched in April last year.
New Jersey is not the only state to experience a funding problem with its EV rebate program. Last month, Oregon announced that it will have to pause its program in May for the same reasons. While these programs are clearly effective, the biggest issue with EVs remains their asking price, and after the US Treasury updated its guidelines on battery sourcing requirements, the list of qualifying vehicles remains densely populated with cars that are simply unaffordable for many Americans. Manufacturers must find a way to bring costs down and pass these on to consumers, or the government's proposed emissions standards will never be met.
Keyword: New Jersey Has Run Out Of Money For EV Rebates