U.S. Government Awards Over $100 Billion in Climate Grants

By Valerie Volcovici

WASHINGTON (Reuters) – U.S. President Joe Biden's administration has awarded over $100 billion in grants created by its signature climate law, the Inflation Reduction Act (IRA), according to a senior administration official.

The administration aims to sustain clean energy deployment even after President-elect Donald Trump, a climate change skeptic, takes office. Trump has pledged to rescind all unspent IRA funds.

> "When funds are obligated, they are protected," the official told Reuters.
> "They are subject to the terms of the contract, so when those contracts are signed and executed, this becomes a matter of contract law more than a matter of politics."

The official noted that the administration is on track to exceed its goal of obligating over 80% of IRA grant funding by the end of Biden's term next month.

The IRA provides a decade's worth of tax incentives for clean energy projects, including wind and solar installations, and ending these subsidies would likely require an act of Congress.

The IRA's grants and subsidies have funneled billions of dollars into renewable-energy projects across the country, disproportionately benefiting Republican-led states.

In August, 18 Republican House members wrote to House Speaker Mike Johnson, urging him not to eliminate the law's incentives, arguing it would jeopardize significant investments. Some of Trump's close allies have also benefited from the IRA, particularly its provisions boosting carbon capture, sequestration, and clean hydrogen.

Recent awards that pushed grant funding over the $100 billion milestone include:
– A $119 million contract by the General Services Administration to electrify five federal buildings in the D.C. region.
– $147 million to the National Oceanic and Atmospheric Administration for science and data collection regarding climate change effects on fisheries.
– An additional $256 million in Rural Energy for America Program grants and loans from the U.S. Department of Agriculture.