On January 22, 2025, President Donald Trump signed an executive order pausing the disbursement of funds from the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act, also known as the Bipartisan Infrastructure Law. This action is part of a broader initiative titled “Terminating the Green New Deal,” aiming to reassess and potentially reverse climate policies established during the previous administration.
The executive order specifically targets programs such as the National Electric Vehicle Infrastructure Formula Program and the Charging and Fueling Infrastructure Discretionary Grant Program, calling for a review of their grant, loan, and contract issuance processes. Additionally, President Trump has revoked the prior administration’s goal of having 50% of new vehicles sold in the U.S. be electric by 2030, effectively ending the “electric vehicle mandate.”
In response to the executive order, the White House issued a memorandum clarifying that the funding pause applies only to programs, projects, or activities implicated by Section 2 of the order. However, Section 2 contains broad directives, including encouraging energy exploration and protecting economic and national security, without specifying particular programs. The memorandum allows agency heads to disburse funds as necessary after consulting with the Office of Management and Budget.
These actions underscore the administration’s focus on promoting fossil fuel industries and reevaluating federal support for clean energy initiatives. The suspension of IRA funding, which had previously facilitated significant investments in clean energy projects and job creation, introduces uncertainty into the future of U.S. climate policy and the nation’s commitment to reducing greenhouse gas emissions.
