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With President-elect Donald Trump vowing to rescind unspent climate funds, the Biden administration is pushing to allocate as much of the $145.4 billion Inflation Reduction Act (IRA) appropriations as possible before Inauguration Day.
Jessie Blaeser and Kelsey Tamborrino report for POLITICO.
In short:
- Close to two-thirds of the IRA’s $145.4 billion climate funds have been announced, but many agencies have not disclosed how much funding is formally committed, potentially making it vulnerable to future cuts.
- Trump has promised to target "unspent" IRA funds if legally permissible, impacting grants and tax incentives supporting green energy jobs.
- Some funds, like the EPA’s Greenhouse Gas Reduction Fund, must be obligated by law, while other major funds risk being pulled back.
Key quote:
“All we can say at the moment is that EPA intends to obligate nearly all IRA investments by the end of the calendar year.”
— Nate Hitchings, EPA strategic communications adviser
Why this matters:
The Inflation Reduction Act has driven substantial investments in U.S. clean energy, particularly in battery and electric vehicle production. Uncertainty around its future could disrupt these projects, affecting both climate goals and job creation, especially in Republican-led districts where much of the new manufacturing has been planned.
