westend61 | westend61 | Getty Images
Some states have suspended payments to consumers through Biden-era rebate programs related to household energy efficiency as federal funds enacted in January were frozen by the Trump administration.
The Inflation Reduction Act, passed in 2022, allocated $8.8 billion in federal funds for consumers through two home energy rebate programs, and was administered by the state, region and the District of Columbia.
Arizona, Colorado, Georgia and Rhode Island, which are in various stages, have suspended or delayed fledgling programs, citing Trump administration policies.
On January 27, the White House frozen federal fund payments that contradict President Trump’s agenda, including initiatives related to green energy and climate change, as a reason to halt rebate funds to consumers.
The destiny of that freeze is still in the air. For example, a federal judge issued an order Tuesday that continued to block policies. However, Propublica reports that in some cases the institutions were withheld tax, contrary to previous court rulings.
Either way, the freeze or its threat appears to be affecting the state’s rebate program.
“Coloradan, which has been receiving savings from home energy rebates, is still being locked out by the Trump administration in the winter,” said Ali Rosenblum, a spokesman for the Colorado Energy Office, in an email statement.
The U.S. Department of Energy and the White House did not reply to CNBC’s requests for comment on the funding freeze.
In some states, rebates are “now unavailable”
Consumers are eligible for housing efficiency rebates of up to $8,000 and for home electrification and appliance rebates of up to $14,000 in accordance with federal law.
Rebates make the cost of remodeling your home and upgrading your appliance energy-efficient. These tweaks aim to reduce the carbon emissions that warm the planet, while reducing consumer utility bills.
California, the Main District, Maine, Maine, Maine, Maine, Michigan, New York, New York, New York, New York, New York, New York, North Carolina and Wisconsin have also begun phases of their rebate programs, according to data from the federal government website.
All states and territories (except South Dakota) applied for federal rebate funds, and the U.S. Department of Energy approved their funds.
More details from personal finance:
Gold is hot, but the classic Warren Buffett rules suggest caution
What will future budget negotiations mean for social security?
Trump, how cuts on dud jobs will affect the economy
The Arizona Governor’s Office said the Home Energy Rebate Program will be suspended until federal funds are released.
“Due to the current federal executive order, memorandum of understanding from the White House Office of Management and Budget, and communications from the U.S. Department of Energy, all Efficiency Arizona Program funds are currently unavailable,” it said in a release Friday.
Rhode Island has suspended new applications as of January 27th due to “current uncertainty” with funding for the Inflation Reduction Act and executive orders, according to the Energy Resources Agency.
The Georgia Environmental Finance Agency launched its pilot program for rebates in the fall of 2024. The program is ongoing, a spokesperson confirmed Monday.
However, the timeline for launching the full program, originally planned for 2025, is delayed until we receive more information from the U.S. Department of Energy,” a Georgia spokesman explained in an email.
However, not all states pressed the pause button. Maine, for example, appears to be still moving forward.
“The program remains open to qualified people,” said Afton Gigue, a spokesman for the energy office of the main governor, in an email.
The status of rebates for the other eight states and districts that launched the program is unknown. The respective energy department or the governor’s office did not reply to requests for comment.
“Signs of interest”
The Trump administration on January 29th withdrew a memo ordering a freeze on federal grants and loans two days after its initial release, but the White House said the freeze was totally powerful.
The 22 state Democratic attorney general and the District of Columbia filed lawsuits against the Trump administration, alleging that the freeze was illegal. The White House argues that it needs to ensure that spending is consistent with Trump’s presidential agenda.
David Terry, president of the National Energy Association’s Association, said he was optimistic.
“I’m not thinking about these two specific programs. [the freeze] Terry will hinder the program.
