The Trump administration suspended funding both for the Inflation Reduction Act (IRA) and the Bipartisan Infrastructure Law (BIL) January 20th as part of the “Unleashing American Energy” Executive Order. Funding distributions are paused for 90 days during which federal agencies are to submit reviews and spending recommendations to the Office of Management and Budget and National Economic Council.
The executive order includes new policy actions combined with revocations of existing executive orders to support domestic fossil fuel and mineral exploration and production for the stated purpose of American prosperity and energy security.
Among the executive orders (EO) revoked, is the “electric vehicle mandate” (14037, August 2021 – Strengthening American Leadership in Clean Cars and Trucks). Subsidies and incentives for purchasing electric vehicles are eliminated so that there’s “a level regulatory playing field” for gas-powered vehicles. Revocation of executive orders requires that all offices, programs and activities established within the EOs be abolished. Yet, because these tax credits are within legislation passed by Congress, protocol is that they cannot be stopped by executive order. A request for changes by Congress should need to occur.
Another action halts all onshore and offshore wind projects directing federal agencies not to issue or renew project approvals, permits, leases or loans pending review of Federal wind leasing and permitting practices. It is unclear what the outcomes will be from this and what the potential effects will be on the project finace market.
Additionally, the Whitehouse Office of Management and Budget has issued a halt on all grants and loans as of the end of day Tuesday January 28th with a review due February 10th to learn which conflict with the Adminstration’s priorities.This will not impact assistance to individuals like social security but does apply to all federal spending on energy projects amounting to over $300 billion in green infrastructure spending. Read more