By Hank Russell
The state could lose out on money they previously received from then-President Joe Biden’s Inflation Reduction Act (IRA) for environmental initiatives as the Trump administration continues to look for ways to eliminate government waste, according to a new report from Comptroller Thomas DiNapoli.
According to the report, the state has been awarded approximately $2 billion in IRA grants thus far. Of that amount, state agencies and authorities received more than $1.33 billion to support climate and pollution mitigation programs and additional support for agriculture programs. One local area, the Shinnecock Nation, received $181,000 in IRA grants.
Some of the grants from the over $1.3 billion bloc include:
- $249.8 million to support New York’s Solar for All program to enable low-income utility customers to subscribe to solar projects and receive a credit on their energy bills. Federal spending information indicates there have been no outlays from this grant.
- $159.0 million for the Home Efficiency rebate program (HOMES) to support rebates for home energy retrofits. There have been outlays of $574,490 from this grant.
- $158.4 million for the High Efficiency Electric Home rebate program to support the State’s provision of point-of-sale rebates for high-efficiency appliances and other equipment. Outlays have totaled $5.3 million.
Local municipalities got $365.8 million for planning and implementation, pollution mitigation, zero-emission vehicles and urban forestry. Some of the Long Island-based localities that received municipal grants were the towns of North Hempstead and Smithtown, at $1,000 each. One grant went towards North Hempstead Branches Out Initiative and Smithtown’s Urban Tree Canopy Improvement Project.
Farms and businesses received $155 million for energy-efficient equipment, renewable and low-emission energy and high-energy batteries for aviation. For nonprofits, they received $125.1 million in grants for climate and pollution mitigation, resilience and urban forestry in disadvantaged communities.
The IRA also offered more than 20 tax credits to go towards buying an energy-efficient vehicles, the manufacture of biofuels and retrofitting homes and commercial buildings. However, only 2.2% of New York State residents filed to claim these credits.
The report states the uncertainty of whether the funding will continue. Upon taking office, President Donald Trump issued an executive order titled “Unleashing American Energy,” which under a section designated “Terminating the Green New Deal,” directs all agencies to pause payments for IRA grant funds. In addition, the repeal of IRA tax credits has been identified as a possible way to pay for reauthorization or expansion of provisions of the 2017 Tax Cuts and Jobs Act, bringing significant uncertainty regarding future funding.
“The possible policy changes in Washington could lead to delays or cuts to the remaining IRA funds and tax credits,” DiNapoli said. “Given the strong interest in improving affordability for consumers, small businesses, farmers, and nonprofits, preserving the IRA’s grant and tax credit programs should be a priority. If the programs are allowed to continue, New York could receive significant additional funding for critical environmental and clean energy projects.”