On Friday, marking the second anniversary of the Inflation Reduction Act, the Environmental Protection Agency (EPA) took a decisive step by securing the use of $27 billion in climate funds, which have faced intense scrutiny from GOP members.
The EPA announced it was officially allocating these funds to various recipients, allowing them immediate access, according to their press release. This strategic move makes it more challenging for Republicans to repeal the allocation should they gain control of both Congress and the White House next year.
EPA Allocates $27 Billion in Climate Funds Two Years After Inflation Reduction Act
In a statement, EPA Administrator Michael Regan emphasized the urgency of addressing climate change. “Given the increasing impacts of climate change on all Americans, particularly those in historically underserved communities, the EPA acted quickly to distribute this serious funding,” Regan stated.
He further noted, “Two years after signing the law, President Biden is delivering on the $27 billion promised, which will benefit American families through reduced energy costs and revitalized communities, while positioning the United States as a leader in the clean energy economy.”
Although the EPA had previously outlined how the funds would be used, Friday’s announcement formalized the allocation. The funds will be distributed across three main programs designed to address climate change and pollution.
Specifically, $7 billion will be allocated to 60 recipients, including states, tribes, local governments, and nonprofits, to support solar power projects in disadvantaged communities. Additionally, $14 billion will be channeled through three nonprofits collaborating with states and the private sector to finance climate-friendly projects nationwide. The remaining $6 billion will be provided to five institutions to establish funding and technical assistance hubs for climate initiatives in low-income areas.
An EPA spokesperson indicated that with the latest announcement, the eight entities under the latter two programs can immediately begin implementing their projects. Meanwhile, the 60 recipients of the solar program will initially access a portion of their funds while finalizing their work plans and budgets, with full access expected once these plans are approved next year.
