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Inflation Reduction Act Money Finds way to States that Refused Funding

Largest cities in states that tuned down money can still receive funds through IRA.   July 24, 2023


By Dave Lubach, Executive Editor


While the Inflation Reduction Act (IRA) has inspired most states in the country to address climate pollution, not everyone climbed aboard the train to apply for the federal money. 

Florida, South Dakota, Iowa and Kentucky all refused to apply for the climate money, causing them to miss out on millions of dollars targeted to address climate change. 

But those states aren’t all completely cut off. Thanks to a feature of the IRA, the program grants were designed so that if a state turned down the money, the Environmental Protection Agency could instead provide the funding to the biggest cities inside those states, according to E&E News

“Everyone was concerned after having seen the way that Republican governors had rejected the health care expansion funding from Obamacare. What would happen if they rejected the climate planning funding too?” says Trevor Higgins, the Center for American Progress’ senior vice president for energy and environment. 

The IRA offered each state $3 million for climate planning and $1 million each to the 67 biggest metro regions in the country. If the governors refused the money, the state’s three biggest cities were eligible to accept. 

For example, Kentucky’s governor rejected the funding, but the cities of Louisville, Lexington and Bowling Green applied and are planning to work together to use the money. 

The stakes are high with the federal funding, as the states that submit a climate plan allow cities and states to compete for $4.6 million in grants for their plans, the article said.  

Dave Lubach is executive editor for the facilities market. 

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