Three questions about the future of US climate tech under Trump

Even if the order is temporary or doesn’t hold up in court, it could be enough to chill investment in a sector that’s already been on shaky ground. As I reported last year, rising costs and slow timelines were already throwing offshore wind projects off track in the US. Investment has slowed since I published that story, and now, with growing political opposition, things could get even rockier.

One major question is how much this will slow down existing projects, like the Lava Ridge Wind Project in Idaho, which got the green light from the Biden administration before he left office. As one source told the Washington Post, the new administration may try to go after leases and permits that have already been issued, but “there may be insufficient authority to do so.”

What about the money?

In an executive order last week, the Trump administration called for a pause on handing out the funds that are legally set aside under the Inflation Reduction Act and the Bipartisan Infrastructure Law. That includes hundreds of billions of dollars for climate research and infrastructure.

This week, a memo from the White House called for a wider pause on federal grants and loans. This goes way beyond climate spending and could affect programs like Medicaid. There’s been chaos since that was first reported; nobody seems to agree on what exactly will be affected or how long the pause was supposed to last, and as of Tuesday evening, a federal judge had blocked that order.

In any case, all these efforts to pause, slow, or stop federal spending will be a major source of fighting going forward. As for effects on climate technology, I think the biggest question is how far the new administration can and will go to block spending that’s already been designated by Congress. There could be political consequences—most funds from the Inflation Reduction Act have gone to conservative-leaning states.  

As I wrote just after the election in November, Donald Trump’s return to office means a sharp turn for the US on climate policy, and we’re seeing that start to play out very quickly. I’ll be following it all, but I’d love to hear from you. What do you most want to know more about? What questions do you have? If you work in the climate sector, how are you seeing your job affected? You can email me at casey.crownhart@technologyreview.com, message me on Bluesky, or reach me on Signal: @casey.131.

Related reading

EVs are mostly set for solid growth this year, but what happens in the US is still yet to be seen, as my colleague James Temple covered in a recent story. 

The Inflation Reduction Act set aside hundreds of billions of dollars for climate spending. Here’s how the law made a difference, two years in.