President Donald Trump made a bold move by suspending all funding disbursements under the Inflation Reduction Act in an executive order issued on Monday. This action, named “Terminating the Green New Deal,” also put a pause on funding disbursements for the Infrastructure Investment and Jobs Act, commonly known as the Bipartisan Infrastructure Law. These laws were key components of former President Joe Biden’s domestic policy agenda, providing federal funding for clean energy projects.
The White House has given federal agencies 90 days to submit reviews and spending recommendations to the Office of Management and Budget and the National Economic Council. However, a memorandum issued by the Office of Management and Budget clarified that the pause on funding disbursements only applies to funds supporting programs, projects, or activities affected by the policy established in the executive order.
The executive order, titled “Unleashing American Energy,” outlined broader directives for agencies to follow, such as encouraging energy exploration, protecting economic and national security, and eliminating the electric vehicle mandate. While agency heads have the discretion to disburse funds as they see fit after consulting with the Office of Management and Budget, Trump’s commitment to rolling back the Biden administration’s climate policies is evident through these actions.
In addition to suspending funding disbursements, Trump also signed an executive order withdrawing the U.S. from the Paris Agreement and called for the end of the electric vehicle mandate set by President Biden. The president revoked Biden’s executive order that aimed for half of new vehicles sold in the U.S. to be electric by 2030, citing concerns about the mandate and EV tax credits provided under the Inflation Reduction Act.
The Inflation Reduction Act allocated a significant portion of its spending to tax credits, with approximately 84% of clean energy grants obligated before Trump took office. Under the Biden administration, the Energy Department announced several deals totaling billions of dollars in committed project investment, including funding for manufacturing projects like Qcells’ Georgia solar cell factory and Ford Motor Co.’s joint venture battery factories with SK On.
Trump’s executive order reflects his focus on unleashing America’s affordable and reliable energy and natural resources, signaling a shift in energy policy from the previous administration. By pausing funding disbursements and reviewing clean energy programs, the administration is taking steps to align its energy agenda with its priorities for economic growth and national security.
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