ALBANY, N.Y. (NEXSTAR) — New York depends on nearly $2 billion from the Inflation Reduction Act to improve clean energy, reduce pollution, and lower energy bills. But in a new report, State Comptroller Thomas DiNapoli warned that cuts might raise energy costs and force delays in vital projects coming up.
“The possible policy changes in Washington could lead to delays or cuts to the remaining IRA funds and tax credits,” DiNapoli said. “Given the strong interest in improving affordability for consumers, small businesses, farmers, and nonprofits, preserving the IRA’s grant and tax credit programs should be a priority."
According to Dinapoli's report, of the $1.979 million federal funds at issue—meant for environmental, energy, and transportation projects throughout the Empire State—over $1.3 billion comes in the form of grants to state agencies. That funding supports home energy improvements and greener transit, with perhaps the largest portion—$250 million—for NYSERDA’s Solar for All program.
As accounted for by the Comptroller’s Office, municipalities were awarded over $365 million for projects that, for example, redo poorly designed roads that separate communities or pollute neighborhoods. From parks projects in New York City to traffic infrastructure repairs in Buffalo, local leaders are already counting on this money.
Farms, businesses, and nonprofits split about $280 million on energy upgrades, community programs, and air quality and efficiency projects. Local nonprofit groups were awarded more than $125 million to track air pollution and plant trees in communities. Farms and small businesses shared about $155 million in IRA money to update equipment and energy systems. It's supposed to keep energy affordable for farmers and rural businesses.
And tax credits for clean energy devices, home improvements, and cleaner cars have in prior years eased the financial burden on many in New York. Carrying over and continuing those previous credits would save New Yorkers anywhere from $3 to $10 billion over the next decade, according to the Comptroller. In 2023, just 2.2% of eligible New Yorkers used them.
But they're not likely to have the chance, DiNapoli said. President Donald Trump's "Unleashing American Energy" executive order called for the immediate review of all federal grants, tax credits, and permitting processes. It paused spending on IRA grants, targeted funds for electric vehicle charging stations, ended contracts with third parties, and forced federal agencies to cut back on any environmental actions.
