Trump EO Freezes Billions Of Dollars Of IIJA & IRA Projects

On inauguration day, President Trump issued an executive order to halt disbursements of funding from the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA), causing uncertainty for numerous climate and infrastructure projects. This “Unleashing American Energy” order directs federal agencies to pause and review funding processes for these acts.

Scope and Impact:

• The order affects billions of dollars in already obligated funding for ongoing infrastructure projects.
• It has significant implications for IIJA and IRA implementation, potentially leading to project delays, terminations, and economic uncertainty.
• The full impact may not be clear for months, but the uncertainty alone is likely to disrupt projects and lead to claims.

Clarifications and Uncertainties:

• The OMB issued a clarifying memo on January 21, limiting the directive to programs Trump termed part of a “Green New Deal.”
• However, the scope remains unclear, potentially affecting a wide range of infrastructure projects beyond just “green” initiatives.
• There’s uncertainty about whether the freeze applies only to unallocated funds or also to spending already committed under contracts.

Specific Targets:

• The order explicitly mentions pausing funds for electric vehicle charging stations, including multi-billion dollar programs.
• It also addresses energy exploration, non-fuel minerals, and aims to eliminate “the electric vehicle mandate.”

Legal and Policy Implications:

• Trump and his administration argue for expansive presidential power to cancel congressionally authorized spending (impoundment), which contradicts prevailing interpretations of federal law.
• The order includes provisions targeting the National Environmental Policy Act (NEPA) regulatory process, indicating a deregulatory agenda.

Potential Consequences for Contractors:

• Disruptions in cash flow may lead to project delays, cancellations, and various legal and contractual issues.
• Contractors are advised to closely monitor these developments and consider how their awards may be affected.
• Some contracts or grants may be terminated if not aligned with the new administration’s priorities.

The lighting industry benefits significantly from infrastructure projects, including EV charging infrastructure. The significant uncertainty and potential disruption caused by this executive order affect a wide range of infrastructure and climate-related projects. More information is available here.

David Shiller

David Shiller is the Publisher of LightNOW, and President of Lighting Solution Development, a North American consulting firm providing business development services to advanced lighting manufacturers. The ALA awarded David the Pillar of the Industry Award. David has co-chaired ALA’s Engineering Committee since 2010. David established MaxLite’s OEM component sales into a multi-million dollar division. He invented GU24 lamps while leading ENERGY STAR lighting programs for the US EPA. David has been published in leading lighting publications, including LD+A, enLIGHTenment Magazine, LEDs Magazine, and more.

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