A new report from New York State Comptroller Thomas P. DiNapoli warns that federal funding for clean energy and environmental programs in New York is now in jeopardy due to policy changes under the Trump administration. The state has been awarded nearly $2 billion in Inflation Reduction Act (IRA) grants, but an executive order from President Trump has put future disbursements at risk.
DiNapoli’s report details the significant financial impact of the IRA, a 2022 law designed to accelerate the transition to clean energy and reduce costs for consumers. He cautioned that potential cuts or delays in funding could disrupt efforts to improve affordability for residents, small businesses, farmers, and nonprofits.
“The possible policy changes in Washington could lead to delays or cuts to the remaining IRA funds and tax credits,” DiNapoli said. “If the programs are allowed to continue, New York could receive significant additional funding for critical environmental and clean energy projects.”
The report highlights how IRA grants have supported New York’s transition to clean energy. Over $1.3 billion has been allocated to state agencies for greenhouse gas reduction and consumer incentive programs, while municipalities have received at least $365.8 million for projects aimed at reducing pollution and addressing climate change. Notably, New Rochelle, Buffalo, and New York City secured $236.4 million for initiatives to repair damage caused by past highway projects that divided communities and increased vehicle emissions.
New York nonprofit organizations have also benefited, receiving at least $125 million for community engagement in environmental policy and local pollution mitigation efforts. Meanwhile, farms and businesses have been awarded $155 million, including funds for rural energy development through the U.S. Department of Agriculture’s Rural Energy for America Program.
Beyond grants, the IRA provides tax credits to encourage clean energy investments. New York residents have already begun benefiting from these incentives, with at least $3.4 billion projected through 2032 if the credits remain in effect. However, the Trump administration’s new directive, titled “Unleashing American Energy,” orders a pause on IRA grant payments. Additionally, the repeal of IRA tax credits is being considered as a way to fund extensions of provisions in the 2017 Tax Cuts and Jobs Act.
With federal funding in limbo, the fate of New York’s clean energy transition remains uncertain.
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