Navigating Federal Funding Challenges: What FMs Need to Know
Potential Trump Administration policies could affect future clean-energy projects in institutional facilities. February 3, 2025
By Dave Lubach, Executive Editor
The blizzard of news surrounding executive orders and the first days of the Trump presidency have raised many questions about the status of many things in the country. In the facilities management world, a lot of the speculation centers around clean-energy projects federally funded through Biden-era policies.
Among the policies in limbo include Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA), both of which include federal funding for school districts and municipalities, among other institutional and commercial facilities.
Matters only got more confusing recently when the Office of Management and Budget rescinded its original call to pause payments for grants and other federal programs. And as with any change in administrations, uncertainty often lingers over past policies.
An article from The Associated Press says that while the call to pause payments was rescinded, efforts “to end the egregious waste of federal funding” will continue, as said by White House press secretary Karoline Leavitt.
In January, FacilitiesNet reported that K-12 school districts started receiving payouts from IRA that helped fund projects like installing new HVAC systems and solar panels to help lower energy costs.
With so much uncertainty, what can facility managers do in the meantime as billions of dollars that are dedicated to clean energy projects hang in the balance?
The law firm Crowell and Moring highlighted four “need to know” takeaways in a message to its clients about how to prepare for any potential changes that might affect projects that are in progress or scheduled to be.
The firm advises clients to:
- Prepare for funding pauses that could lead to delays and termination of projects.
- Review contract terms for payment obligations and potential claims if funding is paused.
- Brace for legal disputes over impact of planned projects and constitutional issues.
- Notify the government of project delay and disruption issues while also continuing to monitor policy developments.
Dave Lubach is executive editor for the facilities market.
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