The 2022 Inflation Reduction Act (IRA) is the largest investment in climate change and renewable energy policy in U.S. history. The initiative included tax credits to spur the growth of clean-energy technologies and address historic underinvestments in low-income communities and communities of color who are often on the front lines of climate change and the devastating impacts of pollution. But these investments face growing uncertainty as shifting political priorities threaten funding continuity and equitable distribution. A new issue brief from Invest in Louisiana’s climate policy fellow, Emanuel Lain, III, examines the focus and future of the IRA in Louisiana.
Louisiana has received $4.3 billion from the IRA, which has flowed to the commercial and industrial sector, state and local governments, public transit agencies and schools. However, a recent executive order from President Donald Trump mandates an immediate pause on the disbursement of any future funds from the Biden-era initiative. This pause has significant implications for Louisiana’s ongoing and planned infrastructure projects slated to receive federal funding under the IRA.