KEY POINTS
- Recent grants help drive renewable energy projects across the U.S.
- Biden administration surpasses $100 billion in clean energy grants.
- Republican-led states see major benefits from IRA funding.
The Biden administration has surpassed $100 billion in clean energy grants, marking a significant achievement in its push for climate action under the Inflation Reduction Act (IRA).
Senior advisor John Podesta, who oversees international climate policy, emphasized the importance of the milestone, stating that the rapid distribution of funds is helping communities across the U.S. transition to renewable energy.
“We’re moving quickly to get these funds into the hands of the people who need them,” Podesta told Reuters. “This shows that we’re committed to delivering real change for the American people.”
The grants, which cover a wide range of clean energy projects, are part of the Biden administration’s broader climate strategy, which aims to reduce emissions and transition to a greener economy.
The administration hopes the funding will continue to drive the clean energy revolution even if President-elect Donald Trump, a climate change skeptic, rescinds unspent IRA funds when he takes office.
Republicans, including Trump allies, benefit from clean energy funds
While climate change has long been a contentious issue in U.S. politics, the clean energy incentives from the IRA have drawn bipartisan support in some regions.
Republican-led states, particularly those with strong energy industries, have benefited significantly from the law’s grants and subsidies.
According to Reuters, in August, 18 Republican House members wrote a letter to House Speaker Mike Johnson, urging him not to cut the IRA’s incentives. These members argued that such actions could jeopardize major investments in renewable energy.
Interestingly, some of Trump’s close allies have also benefitted from provisions within the IRA, particularly those related to carbon capture, sequestration, and clean hydrogen technology.
This highlights the widespread economic support for the IRA, even among Republicans who have often been at odds with President Biden’s environmental agenda.
Recent grants push total funding past the $100 billion mark
Several recent awards have helped push the total grant funding over the $100 billion milestone. Among the largest is a $119 million contract issued by the General Services Administration to electrify five federal buildings in Washington, D.C.
The funding also includes $147 million allocated to the National Oceanic and Atmospheric Administration (NOAA) for climate science and data collection aimed at understanding the effects of climate change on fisheries.
In addition, the U.S. Department of Agriculture has granted $256 million through the Rural Energy for America Program, which helps rural communities transition to renewable energy.
These investments represent just a fraction of the broader effort to modernize U.S. energy infrastructure, reduce carbon emissions, and create sustainable jobs.
The Biden administration is on track to exceed its goal of obligating 80 percent of available IRA grant funding by the end of his term next month. Once these funds are obligated, they are protected by contract law, ensuring that they cannot be easily reversed, even if a new administration seeks to alter the program.
