Louisiana stands at a crossroads. The historic Inflation Reduction Act (IRA) provides a once-in-a-generation influx of federal funding—$4.3 billion across 34 programs—to support climate resilience, economic growth, and environmental justice.2 However, these investments face growing uncertainty as shifting political priorities threaten funding continuity and equitable distribution. The impact of these funds depends on both scale and implementation, particularly for low-income communities and communities of color who have long borne the brunt of industrial pollution without sharing in the economic benefits. Without these proactive measures, underserved communities risk being left behind as funding decisions are made.

The IRA is not anti-fossil fuel. It is about leveraging federal investments to build a cleaner, more resilient economy. Many Louisiana communities, particularly those in the state’s petrochemical corridors, have faced disproportionate environmental harm while seeing limited benefits. [18] The goal now is to ensure these historic investments do not repeat past mistakes, but instead drive inclusive economic benefits.

While previous federal initiatives often overlooked these communities, the IRA has embedded equity measures to ensure underserved areas receive targeted support. The state must take deliberate action to make sure this funding reaches the people who need it most.


Where’s the Money Going?

So far, the IRA has delivered at least $4.3 billion in new funding to Louisiana. This money has supported infrastructure projects—with more on the way—led by various state government agencies, utilities, rural electric cooperatives, nonprofits, ports, universities, parishes, cities, schools, and businesses. These investments will help  reshape Louisiana’s infrastructure for generations to come:

Table 1: Where is the Money Going in Louisiana?

Commercial & Industrial Sector (36%): Investments in emissions reductions and clean technology are crucial for modernizing Louisiana’s economy. One example is the $1.1 billion solar manufacturing facility in New Iberia, which will help expand domestic solar energy production and support the growing demand for renewable power. [1]
State & Local Governments (46%): Federal programs like Solar for All have the potential to benefit disadvantaged communities, but implementation must be intentional. The state’s Solar for Y’all initiative aims to bring affordable solar energy to low-income households while creating local job opportunities. [11] Ensuring widespread participation and equitable implementation must remain a priority.
Federal & Public Transit Agencies (10%): Investments in sustainable transportation are crucial for reducing emissions and improving mobility. One example is the New Orleans-to-Mobile passenger rail and electric bus programs, which aim to expand clean transit options in the region.

Smaller Entities (8%): Tribal governments, utilities, schools, and Non-governmental organizations (NGOs) —many of which serve frontline communities—are receiving a smaller share of funding.

Source: Atlas Public Policy’s Climate Program Portal Outcomes Dashboard


Table 2:  Detailed Look at Recipient Categories

Recipient CategoryProject CountSum of Funding Amount
Commercial/Industry114$1,539,962,158
State Governments52$1,284,549,962
Local Governments87$728,033,364
Federal Agencies19$294,825,400
Public Transit Agencies6$115,716,962
Tribal Governments13$98,008,196
NGOs14$67,803,608
Utilities2$56,628,178
Institutions of Higher Education9$35,881,489
Schools4$25,470,000
Multiple1$1,998,800
Other1$1,480,000

Source: Atlas Public Policy’s Climate Program Portal Outcomes Dashboard

While these investments hold immense potential for reshaping Louisiana’s energy and infrastructure landscape, their impact will ultimately depend on the political will to sustain and fairly distribute them. The question now is whether these funds will continue to flow under their original intent—or if shifting priorities could undermine progress.


The Political Landscape: The Pendulum Swings

The administrations of former President Joe Biden and former Gov. John Bel Edwards prioritized equity in the implementation of federal climate investments. Under Edwards, Louisiana was the only state in the Deep South that published Greenhouse Gas Emissions Targets, [13] a Climate Action Plan, [14] and a state Greenhouse Gas Emissions Inventory. [5] Meanwhile, the federal passage of the Inflation Reduction Act is the largest investment to fight climate change in U.S. history. 

But the political landscape has shifted significantly. New leadership may not prioritize environmental justice, risking funding aimed at the most vulnerable communities. A recent example is the Environmental Protection Agency’s decision to retract $20 billion in climate-related grants that were originally allocated to support clean energy and transportation projects in disadvantaged communities through the Greenhouse Gas Reduction Fund. [6] This rollback threatens initiatives designed to reduce climate pollution and support historically underserved areas, raising concerns about whether federal resources meant for environmental justice will reach the communities that need them most.

Moreover, Louisiana’s unique vulnerability to climate change—marked by rising sea levels, extreme weather events, and coastal erosion—makes it imperative that these funds are used strategically. [8] Investing in climate resilience projects, such as flood protection infrastructure and renewable energy expansion, not only benefit historically underserved communities but also strengthens the state’s economy and long-term sustainability. 

Without a commitment to equitable implementation, these federal dollars risk being concentrated in wealthier regions due to shifts in funding priorities and the rollback of policies that previously directed resources to marginalized communities. If funding allocation no longer prioritizes disadvantaged areas, smaller and poorer communities may be left without the necessary resources to adapt and thrive. [17] To safeguard these investments, policymakers must prioritize benefits—such as job creation, public health improvements, and infrastructure resilience—rather than allowing funding to be dictated by partisan politics. It is critical that these investments remain focused on creating jobs, cleaner air, and economic resilience for all Louisianans.

On January 20, 2025, President Donald Trump issued an executive order titled “Unleashing American Energy,” which mandates an immediate pause on the disbursement of funds appropriated through the Inflation Reduction Act. [7] This pause affects various programs, including those supporting environmental justice and other clean energy initiatives. The order directs all federal agencies to review their processes, policies, and programs related to these funds to ensure alignment with the administration’s current priorities. 

This pause has significant implications for Louisiana’s ongoing and planned infrastructure projects slated to receive federal funding under the IRA. Some projects led by state agencies, utilities, nonprofits, and other entities are currently experiencing delays or lack of communication from the federal government regarding the future of funding. For example, NOLA.com, has reported that the City of New Orleans has faced difficulties in implementing ongoing projects. 

According to the White House’s order, the outcome of these reviews will determine whether federal funds continue flowing to key climate and environmental justice initiatives. Legal experts note that once funds are obligated by federal agencies, canceling them may require congressional approval or may face legal challenges. In the meantime, organizations like Micah 6:8 Mission remain in limbo, with their funding halted and their work stalled.

Given the potential impact on Louisiana’s infrastructure development and clean energy transition, it is imperative for state policymakers, businesses, and community organizations to advocate for the continuation of these investments. Proactive engagement with federal agencies and the pursuit of alternative funding sources will be essential to ensuring that Louisiana does not lose momentum in advancing its clean energy goals.

Beyond the immediate disruptions, these executive actions create both short- and long-term challenges for climate grants and loans at different stages of implementation. Even temporary funding delays can jeopardize the sustainability of projects by increasing uncertainty and driving up costs. [4] If the funding pause is eventually lifted, previously allocated funds may still be at risk if agencies decide to cancel contracts with grant recipients. Any slowdown in the grant distribution process, whether through pauses, funding cuts, or lack of clarity, could make it even harder for small and underresourced communities in Louisiana to access these essential resources. These communities often struggle with the financial burden of extended project timelines and increased uncertainty, making the continuation of these investments even more urgent. 

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Ensuring Louisiana Secures and Protects Climate Investments

It is critical that the federal government lifts the pause on the historic Inflation Reduction Act (IRA) and makes sure these investments reach the communities that need them most. To safeguard progress, Louisiana should:

  • Ensure equitable distribution of funds. Louisiana should ensure that climate investments prioritize low-income neighborhoods by fully covering project costs for qualifying households and streamlining access to clean energy incentives​. Louisiana should apply these priorities to the current rollout of the HOMES program. [9]. According to the Office of Energy’s website, “Louisiana anticipates some rebates will be available in late 2025 with all rebate programs available by early 2026.” [11] Despite recent funding hiccups, this program needs to be a priority.  Additionally, the state should implement Climate XChange’s  Environmental Justice Community Investment Requirements, [15] ensuring that a designated percentage of funds and benefits from state climate and clean energy initiatives are directed toward environmental justice communities. This approach, successfully adopted by states like Colorado and Washington, helps guarantee the equitable distribution of resources to those most affected by environmental and economic disparities.
  • Secure alternative funding sources. With some federal programs facing uncertainty, Louisiana can mitigate risk by leveraging state-level resources, such as, green banks, carbon pricing, [16] and public-private partnerships​. The establishment of Louisiana’s Clean Energy Fund [10] is a good start, and the state should seek more opportunities. 

By taking these steps, Louisiana can lock in federal climate investments, protect against uncertainty, and ensure an equitable energy transition that benefits all residents



References
  1. First Solar. (n.d.). First Solar breaks ground on $1.1B manufacturing facility in Iberia Parish, Louisiana. Retrieved from https://rebusinessonline.com/first-solar-breaks-ground-on-1-1b-manufacturing-facility-in-iberia-parish-louisiana/
  2. Atlas Public Policy. (n.d.). Climate program portal. Retrieved from https://climateprogramportal.org/
  3. NOLA.com. (n.d.). Trump’s environmental funding freeze impacts New Orleans climate initiatives. Retrieved from https://www.nola.com/news/environment/trump-new-orleans-environment-climate-freeze/article_e8d744b0-e8b6-11ef-ab28-c3a8a79d6838.html
  4. Center on Budget and Policy Priorities. (n.d.). With federal climate funding at risk, policymakers should protect benefits. Retrieved from https://www.cbpp.org/research/climate-change/with-federal-climate-funding-at-risk-policymakers-should-protect-benefits
  5. Louisiana State University. (2021). Greenhouse Gas Emissions Inventory Report. Retrieved from https://www.lsu.edu/ces/research/greenhousegasreport2021.php
  6. Reuters. (2025, February 13). EPA chief seeks to claw back $20 billion in climate funding. Retrieved from https://www.reuters.com/business/environment/epa-chief-seeks-claw-back-20-billion-climate-funding-2025-02-13/
  7. The White House. (2025, January 20). Unleashing American energy: Presidential executive order. Retrieved from https://www.whitehouse.gov/presidential-actions/2025/01/unleashing-american-energy/
  8. NOLA.com. (n.d.). Here’s why Louisiana is so vulnerable to climate change. Retrieved from https://www.nola.com/news/environment/heres-why-louisiana-is-so-vulnerable-to-climate-change/article_a078c9d2-0bc2-11ee-91a5-676ad0ad1c52.html
  9. Louisiana Department of Natural Resources. (n.d.). Home energy rebates programs. Retrieved from https://www.dnr.louisiana.gov/page/home-energy-rebates-programs
  10. Louisiana Clean Energy Fund. (n.d.). About us. Retrieved from https://lacleanenergy.org/
  11. Louisiana Department of Natural Resources. (n.d.). Louisiana DNR granted $156 million in federal solar funding. Retrieved from https://www.dnr.louisiana.gov/news/louisiana-denr-granted-156-million-in-federal-solar-funding
  12. NOLA.com. (2025). Amtrak passenger service set to return to Gulf Coast. Retrieved from https://www.nola.com/news/business/amtrak-passenger-service-return/article_699baa6c-efb2-11ef-b044-2b63322d00d0.html
  13. Governor of Louisiana. (2020). Executive Order JBE 2020-18: Climate Initiatives Task Force. Retrieved from https://gov.louisiana.gov/assets/ExecutiveOrders/2020/JBE-2020-18-Climate-Initiatives-Task-Force.pdf
  14. Governor of Louisiana. (2020). Climate Action Plan Final Report. Retrieved from https://gov.louisiana.gov/assets/docs/CCI-Task-force/CAP/ClimateActionPlanFinal.pdf
  15. Climate Policy Dashboard. (n.d.). Environmental Justice Community Investment Requirements. Retrieved from https://www.climatepolicydashboard.org/policies/climate-governance-equity/ej-community-investment-requirements
  16. Climate Policy Dashboard. (n.d.). Carbon Pollution Pricing. Retrieved from https://www.climatepolicydashboard.org/policies/cross-sector/carbon-pollution-pricing
  17. Scot Scoop. (n.d.). End of Justice40 sparks concerns of environmental justice. Retrieved from https://scotscoop.com/end-of-justice40-sparks-concerns-of-environmental-justice/
  18. Louisiana Illuminator. (2024, June 10). Minorities in petrochemical corridors face disproportionate pollution burdens.Retrieved from https://lailluminator.com/2024/06/10/minorities-petrochemical/