With the new Trump Administration, there have been a lot of changes and efforts made to “roll back” the IRA. During his campaign, President Trump expressed his desire to terminate the Inflation Reduction Act. This information was compiled from research done by the Sabin Center for Climate Change Law. Here is a timeline of some of the key changes made by the new administration, and how they affect your ability to save money and reduce emissions:
Timeline of Key Events in 2025 (so far)
Jan 20: Trump Issues Executive Order to Halt All IRA Funding Disbursements
Under Executive Order (EO) 14154, titled “Unleashing American Energy, President Trump halted the funding of all IRA funding disbursements. Specifically, all government agencies were directed to stop disbursing Inflation Reduction Act funds immediately.
Jan 21: Federal Office of Management & Budget Clarifies Scope of the Order to Halt IRA Spending
The United States’ Office of Management & Budget released a memorandum to agency and department heads that Trump’s order was limited to “funds supporting programs, projects, or activities that may be implicated by the policy established in Section 2 of the order.” One of the main stances expressed in Section 2 is the administration’s elimination of the “electric vehicle (EV) mandate. This could impact the $4500 EV Federal Credit & EV Charger Rebates.
Feb 3: DOI Secretary Issues Order to Review IRA Regulations and Spending
Mar 3: Arizona Pauses Energy Rebate Program After DOE Funding Pause
Due to the Trump administration’s freeze on funding and delay of IRA disbursements, Arizona paused its home energy rebate program (valued at $153 million).
Mar 4: California Halts Energy Rebate Program Amid Trump Freeze
This pause was not limited to red states. California cited uncertainty regarding the Trump administration’s federal funding freeze. The California Energy Commission has paused applications for their $290 million IRA-funded energy rebate program
Mar 25: USDA Releases Frozen IRA Funding With Requirements to Revise Project Plans
After nearly 2 months since IRA funding was frozen, the US Department of Agriculture announced that it will release funding that was already obligated through the Rural Energy For America Program (REAP), Empowering Rural America (New ERA) and Powering Affordable Clean Energy (PACE) programs.
- IRA section 22002 funds REAP, which supports projects to expand renewable energy and improve energy efficiency in rural communities.
- IRA section 22004 funds the New ERA to reduce emissions from rural electric cooperatives
- IRA section 22001 funds the Powering Affordable Clean Energy (PACE) programs authorizes USDA to make low-interest loans to expand renewable electricity generation.
These are only a few key changes that directly affect your financial incentives, and there are many more projected for the future. One common pattern is that this administration is stopping a large amount of project and nonprofit funding due to various reasons. Keep a look out for a more thorough analysis and other updates on the IRA Status in the future! For any questions, reach out to anna@savemoneyreduceemissions.com!