Trump Administration Freezes Clean Energy Funding, Sparking Controversy

Riley King

Riley King

January 28, 2025 · 3 min read
Trump Administration Freezes Clean Energy Funding, Sparking Controversy

The Trump administration has announced a freeze on federal grants for clean energy programs, sparking controversy and opposition from Democrats and environmental groups. The move is seen as a major blow to the clean energy sector, which has been a key area of focus for the Biden administration.

According to a memo sent to federal agencies, the freeze is intended to stop funds for policies that President Trump has crusaded against, including the "green new deal." While there is no single policy in place across the federal government named "the green new deal," the term is often used to refer to a range of initiatives aimed at reducing carbon emissions and promoting clean energy.

The freeze is likely to affect programs established under the Inflation Reduction Act (IRA), which was signed into law by President Biden in 2022 and provided $369 billion in federal funding for climate action and clean energy. The 2021 Bipartisan Infrastructure Law also includes $50 billion to address the impacts of climate change and cyberattacks on national infrastructure, and $73 billion for upgrading the power grid.

Democratic lawmakers have already begun to push back against the freeze, with Senate Democratic Leader Chuck Schumer (D-NY) stating that "Congress approved these investments and they are not optional; they are the law." Schumer called on the Trump administration to reverse the freeze and distribute the funds to the people.

The Department of Energy and the Environmental Protection Agency (EPA) have both confirmed that they are temporarily pausing activities related to the obligation or disbursement of federal financial assistance. The EPA stated that it is "temporarily pausing all activities related to the obligation or disbursement of EPA Federal financial assistance at this time."

The Biden administration had anticipated Trump's efforts to dismantle its programs and scrambled to release much of the funding from the Inflation Reduction Act before leaving office. According to Biden's national climate adviser Ali Zaidi, "on the unspent funds, we are at a place where we're north of $9 out of every $10 of grant funding and other similar dollars that have already hit the economic bloodstream across the country."

The implications of the freeze are still unclear, but it is likely to have significant consequences for the clean energy sector and the environment. The move is seen as a major setback for efforts to address climate change and promote clean energy, and is likely to spark further controversy and opposition in the coming days.

As the situation continues to unfold, it remains to be seen how the freeze will affect specific programs and initiatives. However, one thing is clear: the Trump administration's move is a major blow to the clean energy sector and the environment, and is likely to have far-reaching consequences.

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