Author: PPD Team Date: 24/01/2025
US President Donald Trump has issued an executive order suspending all funding disbursements under the Inflation Reduction Act (IRA), marking a significant shift in the US energy agenda.
The move, termed “Terminating the Green New Deal,” also halts funding for the Infrastructure Investment and Jobs Act, impacting clean energy and manufacturing projects.
Federal agencies now have 90 days to submit reviews and spending recommendations to the Office of Management and Budget and the National Economic Council. This pause in funding reflects Trump’s push to reverse the climate policies of the previous administration.
The new president also signed an order withdrawing the US from the Paris Agreement. The funding pause is part of a broader “Unleashing American Energy” executive order, which reassesses programmes such as the National Electric Vehicle Infrastructure Formula Programme and the Charging and Fueling Infrastructure Discretionary Grant Programme. This order focuses on promoting “America’s affordable and reliable energy and natural resources.”
Trump’s agenda includes ending the electric vehicle mandate and revoking Biden’s 2021 order for half of new US vehicles to be electric by 2030. He has been critical of the IRA’s EV tax credits, which represent a significant portion of the act’s spending.
A Biden administration official noted that 84% ($96.7 billion) of IRA clean energy grants had already been allocated before Trump’s return to office. Under Biden, the Energy Department announced 53 project investments totalling $107.57 billion, including a $1.4 billion deal for Qcells’ Georgia solar cell factory and $9.6 billion for Ford’s battery factories with SK On.
The White House clarified that Trump’s order mainly affects programmes promoting electric vehicles and discouraging fossil fuel development, while funds for other infrastructure projects like bridges and highways remain unaffected.
Source: Power Technology