In a significant shift in policy, President Donald Trump has announced the suspension of all funding from the Inflation Reduction Act. This executive order, issued on Monday, is part of a wider initiative to establish the new administration’s energy policies. The suspension also includes halting funding from the Infrastructure Investment and Jobs Act, a key element of former President Joe Biden’s domestic agenda aimed at supporting clean energy projects.
Federal agencies are now tasked with reviewing various programs and will have 90 days to submit their findings and recommendations regarding spending to the Office of Management and Budget and the National Economic Council. Such pauses in funding are not unusual when a new president takes office, but this action illustrates Trump’s intention to dismantle Biden’s climate initiatives.
In addition to suspending funding, Trump signed another order withdrawing the United States from the Paris Agreement. This is part of a series of executive actions reflecting his focus on promoting what he refers to as “affordable and reliable energy and natural resources” in America.
Trump’s order also targets specific programs for electric vehicles, ordering a review of the National Electric Vehicle Infrastructure Formula Program and the Charging and Fueling Infrastructure Discretionary Grant Program. He aims to end the previous administration’s push for electric vehicles, including the goal of having 50% of new vehicles sold in the U.S. being electric by 2030.
Previously under Biden’s administration, a large portion of the funding for clean energy projects had already been allocated, with reports indicating that around 84% of the Inflation Reduction Act’s grants, totaling approximately $96.7 billion, were assigned before Trump’s executive order. Significant investments included major projects like Qcells’ solar cell factory in Georgia and Ford’s electric vehicle battery factories in partnership with SK On.
The upcoming months will be critical as the administration assesses funding and lays out a new path for America’s energy strategy.