Biden Administration Rapidly Allocating Climate Funds Amid Trump’s Threat to Cancel Them, Reports Reuters

By Valerie Volcovici

Former President Donald Trump has announced plans to cancel any unspent funds from President Joe Biden’s groundbreaking climate legislation if he wins the presidential election on November 5. However, Biden administration officials suggest that the majority of grants will likely be disbursed by the time a new president takes office in January, making it a significant legal challenge to target any remaining funds.

So far, the Biden administration has allocated $90 billion in grants for climate, clean energy, and related projects under the 2022 Inflation Reduction Act. This amount represents approximately 70% of the approximately $120 billion allocated for climate initiatives in the law, with over 80% of available funding being spent prior to 2025. An additional $15 billion could be awarded in the upcoming months.

The administration aims to distribute the funds "as quickly and as equitably as we can," according to White House Deputy Chief of Staff Natalie Quillian. She indicated that freezing the unspent funds and the numerous tax credits available for electric vehicles, solar plants, and wind farms would be complex if Trump were to regain power. Quillian emphasized that no president has the authority to withhold appropriated funds simply due to disagreement with congressional policies.

Recognized as the largest climate law in U.S. history, the Inflation Reduction Act totals over $400 billion, which includes grants, tax incentives, and credits aimed at advancing clean energy initiatives. Trump, who has previously dismissed climate change as a hoax, reiterated his intention to "rescind all unspent funds under the misnamed Inflation Reduction Act" during a speech focused on the economy.

The former president is campaigning against Vice President Kamala Harris, a Democrat who played a crucial role in passing the legislation by casting a tie-breaking vote in the Senate. Republican House Speaker Mike Johnson stated that if his party gains control of Congress on Election Day, they will address the Inflation Reduction Act within the first 100 days of their tenure. The potential for this ambition to materialize will depend on the makeup of the subsequent Congress.

House Republicans have made numerous attempts—42, to be precise—to repeal some or all of the law, but have consistently fallen short of securing enough votes. Recently, a group of 18 Republican House members sent a letter to Johnson, urging him to protect the law due to the investments driven by IRA subsidies in their districts.

Agencies within the Biden administration overseeing climate-related funding have reported swift progress in grant disbursement. The Department of Energy and the Environmental Protection Agency have claimed to have either obligated all or nearly all of their IRA-related funding. The Interior Department has allocated nearly $4.9 billion of its $6.4 billion total funding under the act, while the Treasury Department has finalized regulations for utilizing major IRA tax credits for 22 of the 24 available programs, with plans to complete the remaining regulations within the year.

According to Gillian Metzger, a law professor at Columbia University, Trump would face challenges in repurposing these funds due to protections established by the 1974 Impoundment Control Act. This law was enacted in response to President Richard Nixon’s decision to withhold funds he opposed on policy grounds, significantly constraining presidential authority over appropriated funds.