"The pause throws tens of billions of dollars of lawfully designated clean energy funding into uncertainty. It’s likely to face challenges in court."
"The Trump administration has ordered federal agencies to “immediately pause the disbursement of funds” under the landmark federal climate and energy laws passed during the Biden administration, a move that will throw tens of billions of dollars of lawfully designated federal funding into limbo — and one that is likely to be challenged in court.
The pause on disbursing funds appropriated through the Inflation Reduction Act and the Bipartisan Infrastructure Law is laid out in a section of a broader executive order on “Unleashing American Energy,” entitled “Terminating the Green New Deal.”
Donald Trump has adopted the “Green New Deal” moniker for a slew of energy and climate policies he opposes, including the hundreds of billions of dollars in tax credits, grants, and incentives for clean energy, electric vehicles, and programs to reduce climate and environmental pollution.
The order calls on federal agencies to halt all disbursements under the two laws while they “review their processes, policies, and programs for issuing grants, loans, contracts, or any other financial disbursements of such appropriated funds for consistency with the law.” It gives federal agencies 90 days to report to the director of the Office of Management and Budget and the head of the National Economic Council on how the frozen spending aligns with the administration’s overall energy goals."
Jeff St. John reports for Canary Media January 21, 2025.
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