Government support for clean energy has spurred new projects across the U.S., with more than 80 percent of the spending flowing to Republican districts. But since President Trump took office, new project announcements have seen a precipitous drop.
Since the 2022 passage of the Inflation Reduction Act, which authorized billions of dollars of support for clean tech, firms have announced hundreds of new projects — including solar, wind, and battery plants — that are collectively worth $129 billion, according to an analysis from the clean energy nonprofit E2. Close to $107 billion of that money is going to congressional districts represented by Republicans, supporting projects that are expected to create around 82,000 jobs in total.
But since January, firms have backed off from announcing new undertakings. On his first day back in office, Trump froze spending under the Inflation Reduction Act. Last month firms announced just $176 million in new spending, the lowest level by far since the law was passed.
Amid uncertainty, several firms have even canceled projects, with the impact felt most acutely in GOP strongholds. Recent cancellations have sapped $2.7 billion in spending and cost an estimated 1,300 jobs in Republican districts, E2 estimates.
Said Michael Timberlake, of E2, “We hope leaders in Washington recognize what’s at risk for businesses, workers, and communities across the country if this self-inflicted and unnecessary market uncertainty continues.”
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