By Kristen Cheriegate | ICAST Policy Manager
With Donald Trump as the President-elect of 2025, many fear his campaign claims of repealing green energy and environmental subsidies, clawing back related funds in favor of deregulation, and increasing the domestic production of oil. The Inflation Reduction Act (IRA) is the single largest climate and energy investment in American history and was signed into law by President Biden in 2022. The IRA is instrumental in expanding clean energy technologies throughout the residential sector in America. With its funding supporting state-based Weatherization Assistance Programs (WAPs), Investment Tax Credits (ITCs), and residential and commercial solar for low-income communities, IRA is foundational for the energy efficiency and renewable energy work multifamily properties and residents receive. However, although a full repeal is unlikely, the energy subsidies from IRA are a prime candidate for the incoming administration’s anticipated “pruning” efforts.
IRA provides a multitude of benefits for ICAST customers, multifamily residents, and property owners. ITCs make renewable energy projects like solar, battery energy storage systems, and electric vehicle charger installations more accessible and affordable for low- and moderate-income communities. Additional funding for WAP allows multifamily affordable housing owners to upgrade their property and reduce energy costs for their residents. IRA has also established two rebate programs for energy-efficient efforts, appliances, and electrification, with some programmatic funds already available in certain states. These opportunities provide underserved communities with accessible financing and support a wide range of green projects that benefit residents and property owners alike. Protecting the IRA’s programs and subsidies is critical; without them, communities risk losing unprecedented levels of support for a sustainable and affordable energy future.
Although President-elect Donald Trump fought back against IRA along the campaign trail, a full repeal is highly unlikely —even with a governmental trifecta. Instead, experts expect that we will sooner see specific subsidies targeted and unused (or “wasteful”) spending affected. Not all Republicans want a full repeal, especially in cases where the IRA has benefitted their states and constituents. In August, 18 House Republicans sent a letter to Speaker Mike Johnson asking him to preserve the IRA after hearing concerns about a repeal; although they still believe IRA is “deeply flawed” and in need of changes, they believe that preservation is necessary for business and market certainty. Repealing many parts of IRA will require Congressional support from the upcoming Republican majority in Congress; so it is critical to remember that much of the IRA spending is going to Republican districts, and is already having real benefits in those districts. A report published by E2 in August 2024 found the following:
Despite the fact that no Republican voted for the [IRA] legislation, nearly 60% of the announced projects are based in Republican congressional districts. Of all new projects, those in Republican districts represent 85% of the investments and 68% of jobs. Of the top 20 congressional districts for clean energy investments, 19 are held by Republicans.
That being said, without Congress, Trump’s administration could affect the delivery of the tax credits to States and low-income communities by directing the Treasury Department to modify, postpone, or halt the execution of the rules of how to distribute the tax credits.
Even a partial repeal of IRA may result in a loss of jobs, commercial revenue, and access to cost-saving technologies for low-income communities. The IRA provided about 2.3 million households with funds for upgrades, including heat pumps, energy-efficient air conditioners, insulation, windows, and doors — projects that created job growth in construction and energy sectors. Clean energy jobs increased by 142,000 in 2023, and most of the job growth created by the IRA has been in Republican-led states and congressional districts. Repealing portions of the IRA would impede job growth and investment in affordable energy – hurting communities living in poverty and affordable housing the most through economic impacts. But until the change of President in 2025, federal agencies continue to push forward with disbursing grants and loans for clean energy projects.
The viability of existing and future funds for accessible energy projects in low- and moderate-income communities, and the continuous job growth due to IRA funding, will be determined by policymakers—who in turn are urged by their constituents like yourself. Many members of Congress are aware of the IRA’s benefits to their states and counties. Still, dialogue among state representatives, senators, and stakeholders—such as multifamily and affordable housing groups, property owners, and utilities—in each state can help ensure that IRA funding continues to have real impacts on our communities and economy.