An executive order released by the White House states, “All agencies shall immediately pause the disbursement of funds appropriated through the Inflation Reduction Act of 2022”.
The White House has issued an executive order titled “Unleashing American Energy,” which includes a directive to halt funding from the Inflation Reduction Act (IRA). Section 7 of the order, titled “Terminating the Green New Deal,” mandates an immediate pause to the disbursement of funds appropriated through both the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act.
Section 7 states:
All agencies shall immediately pause the disbursement of funds appropriated through the Inflation Reduction Act of 2022 (Public Law 117-169) or the Infrastructure Investment and Jobs Act (Public Law 117-58).
The Executive Order specifies that funding for electric vehicle (EV) charging stations, including programs under the National Electric Vehicle Infrastructure Formula Program and the Charging and Fueling Infrastructure Discretionary Grant program, is included in the pause. Additionally, the order requires a 90-day review of all processes, policies, and programs related to grants, loans, contracts, and other financial disbursements. Agencies must assess whether these align with the administration’s newly established energy goals outlined in Section 2 of the document.
Section 2 highlights broad objectives to reshape U.S. energy policy. It states nine goals, including:
- Expanding energy exploration on federal lands and waters
- Prioritizing the production of rare earth metals
- Allowing federal override of state energy goals
- Eliminating what the order describes as the “electric vehicle mandate”
- Promoting “consumer choice” in appliances and vehicles
The document’s reference to an “electric vehicle mandate” reflects language from political debates in prior years. However, there is no national legal requirement to purchase electric vehicles. While several states have implemented EV sales mandates beginning in the 2030s, most EV adoption remains consumer-driven, supported by policies that incentivize rather than mandate adoption. The order also claims to promote “consumer choice” by suggesting a rollback of appliance efficiency standards.
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 agrivoltaics initiatives, Republican-led states were projected to receive the lion’s share of the IRA’s grants and subsidies. $337 billion in IRA funding for factories and renewable energy projects in ‘red states,’ significantly outpacing the $183 billion expected for ‘blue states.’
Anticipating political challenges, the Department of Energy’s Loan Programs Office dispersed billions in clean energy loans before the end of President Biden’s term. According to John Podesta, who served as senior advisor for international climate policy in the Biden administration, this effort was designed to safeguard progress on renewable energy deployment.
Nevertheless, the new administration’s actions mark a significant shift in U.S. energy policy, prioritizing deregulation and fossil fuel development over climate initiatives.
