New York could lose out on nearly $2 billion in promised federal grants for environmental and clean-energy projects if President Donald Trump continues to withhold payments from the 2022 Inflation Reduction Act, according to a report by state Comptroller Tom DiNapoli. Landlords, state agencies and ordinary taxpayers would all be affected.
The report, released Friday, also found that New York taxpayers could miss out on $3.4 billion in tax credits they are currently set to receive through 2032, which apply to climate-friendly purchases like electric vehicles and lower the utility bills for people who use technologies like solar or wind energy.
Although $1.98 billion in grants have been awarded to New York under the landmark Biden-era climate law, only a small fraction of that money has been paid out, the report states. The funding is now in limbo following Trump’s January executive order that froze all grant payments, and although multiple judges have ordered the administration to resume payments, it is unclear whether the Trump administration is complying.
The funding at risk in New York includes:
$452 million to the Port Authority of New York and New Jersey for new low-emission equipment that would reduce air pollution in New York City, Newark and other areas$250 million for the state’s Solar for All program, which helps low-income utility customers subscribe to solar projects and get credits on their energy bills$159 million to rebate homeowners on energy retrofits$125 million to local nonprofits, including the State University of New York Research Foundation, for projects that include research on air pollution$39 million to New York City School Bus Umbrella Services, the operator of the city’s school bus system, to replace existing buses with zero-emission vehicles$10 million to the city Parks Department for “forested natural areas care and job training”
And as Crain’s reported last month, developers and landlords are particularly threatened by the freeze on funding from the Green and Resilient Retrofit Program, which assists climate-friendly building renovations. Awards at risk in New York City include a $20 million grant for renovations at Marcus Garvey Village in Brooklyn, an apartment complex owned by L+M Development Partners.
The Inflation Reduction Act’s tax credits, meanwhile, have already begun to benefit New York residents. Some 190,000 state taxpayers claimed a total of $374 million in 2023 from two tax credits that incentivize clean energy equipment and efficiency upgrades.
Republican lawmakers are discussing a repeal of the tax credits in order to help pay for the tax-cut law now working its way through Congress. But a complete rollback of the Inflation Reduction Act is no sure thing, given that much of the spending and tax credits benefit Republican-held Congressional districts — this week, Politico reported, 21 House Republicans urged their own party’s leaders to preserve the law’s clean energy credits.
“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,” DiNapoli said in a statement. “If the programs are allowed to continue, New York could receive significant additional funding for critical environmental and clean energy projects.”
