An executive order issued by the White House states: “All agencies should immediately suspend the disbursement of funds appropriated by the Inflation Reduction Act of 2022.”
The White House issued an executive order titled “Unleashing American Energy,” which includes a directive to suspend funding for the Inflation Reduction Act (IRA). Section 7 of the order, titled “Ending the Green New Deal,” mandates an immediate pause in the disbursement of funds appropriated by both the Inflation Reduction Act (IRA) and the Inflation Reduction Act (IRA). investments in infrastructure and employment.
Article 7 states:
All agencies must immediately suspend the disbursement of funds appropriated by the Inflation Reduction Act of 2022 (Public Law 117-169) or the Infrastructure Investment and Jobs Act (Public Law 117-58) .
The executive order clarifies that funding for electric vehicle (EV) charging stations, including programs under the National Electric Vehicle Infrastructure Formula Program and the Discretionary Grant Program for Charging and Refueling Infrastructure, is included in the break. Additionally, the order requires a 90-day review of all processes, policies, and programs related to grants, loans, contracts, and other financial disbursements. Agencies should evaluate whether these align with the Administration’s newly established energy goals described in Section 2 of the document.
Section 2 highlights broad goals for reshaping U.S. energy policy. It sets out nine objectives, including:
- Expand energy exploration on federal lands and waters
- Prioritize production of rare earth metals
- Allow the federal government to ignore state energy goals
- Remove what the order describes as the “electric vehicle mandate”
- Promote “consumer choice” in household appliances and vehicles
The document’s reference to an “electric vehicle mandate” reflects the language of policy debates in previous years. However, there is no national legal obligation to purchase electric vehicles. Although several states have implemented electric vehicle sales mandates beginning in the 2030s, most electric vehicle adoptions remain consumer-driven, supported by policies that encourage rather than mandate adoption. The order also purports to promote “consumer choice” by suggesting a rollback of efficiency standards for household appliances.
Despite public political controversy from the Trump camp, the Inflation Reduction Act has been found to benefit many Republican allies with significant financial stakes in clean energy projects. As noted in our analysis of bipartisan agrivoltaic initiatives, Republican-led states were expected to receive the lion’s share of IRA grants. $337 billion in IRA funding for factories and renewable energy projects in “red states,” far exceeding the $183 billion expected for “blue states.”
Anticipating policy challenges, the Department of Energy’s Office of Loan Programs distributed billions in clean energy loans before the end of President Biden’s term. According to John Podesta, who served as a senior adviser for international climate policy in the Biden administration, the effort was intended to ensure progress in renewable energy deployment.
Nonetheless, the new administration’s actions mark a significant shift in U.S. energy policy, prioritizing deregulation and fossil fuel development over climate initiatives.
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