President Donald Trump has halted federal funding for clean energy upgrades. It is part of a slew of executive orders he issued after taking power, negatively impacting American homeowners and Earth.
What's happening?
As Canary Media reported, Trump froze funding under the Inflation Reduction Act and Bipartisan Infrastructure Law. He opposes many clean energy and climate policies, including ones to reduce pollution, make electric vehicles affordable, and offer tax credits to homeowners.
While energy-related government spending is on hold, federal agencies must review their processes and programs for issuing grants and other financial disbursements.
Why are halted energy incentives significant?
Tax credits and rebates that have been helping American families afford sustainability upgrades are now uncertain. Various grant-funded electrification, transportation, and infrastructure projects are now at risk.
It is at least uncommon for new administrations to halt spending on programs and laws passed by Congress. This has sewn confusion among government agencies and could stunt economic and environmental progress.
"This would obviously stop any unappropriated funding, but the halt on any disbursement suggests a broader move, such as stopping payment of funds that had already been approved and previously contracted," said Alex Kania, director of equity research at Marathon Capital. "Bottom line, these executive orders inject a lot of uncertainty into federal clean energy policy, and a turn to the courts seems likely."
What's being done about frozen energy spending?
With tens of billions of dollars in legally committed federal funding in limbo, this matter of frozen funds is headed for the legal system. It is unlikely that Trump will be able to reverse or cancel obligated grant awards already committed by the Biden administration, yet this possibility is concerning.
According to the Biden administration, $96.7 billion in clean energy grants, approximately 84% of IRA grant funding, has already been committed.
However, frozen funds don't mean the money is gone for good, at least yet.
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Should the government continue to give tax incentives for energy-efficient home upgrades? Click your choice to see results and speak your mind. |
Absolutely 💯 We've known for a while that Trump planned to eliminate government subsidies to benefit American homeowners. In addition to the matter likely going to court, any changes to the IRA will require an act of Congress.
Therefore, investing in energy-saving home renovations right away is crucial before it is too late to take advantage of any remaining incentives. To help you navigate the process quickly and efficiently, Rewiring America offers calculation tools and other resources for cashing in on available incentives, finding contractors, and making upgrades as affordably as possible.
By doing so and despite political shifts, you can make your family resilient to extreme weather events, save money on monthly utility bills, and decrease your pollution output for cleaner air and a healthier planet.
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