The Biden administration championed some of the largest spending bills in U.S. history, directing over a $1 trillion towards clean energy and infrastructure initiatives. However, fully using the allocated funds before the end of President Joe Biden’s term is likely going to become a nearly impossible task.
The substantial financial backing comes from four key legislative acts: the American Rescue Plan, the Bipartisan Infrastructure Law, the CHIPS and Science Act and the Inflation Reduction Act. Together, these laws have earmarked $1.1 trillion for climate, energy and infrastructure projects.
Despite this massive investment, only around 17% of the funds have been spent, according to a review by Politico. With just six months remaining in Biden’s presidency, questions are being raised about the future of the unspent billions. Those questions were amplified after Biden announced that he will not seek reelection.
Should former President Donald Trump take back the White House in November’s presidential election, there is a possibility that many of Biden’s clean energy initiatives could be undone. A new administration might halt project approvals. It could also seek to repeal the laws with a Republican-led Congress, potentially blocking the remaining funds permanently.
This scenario led to speculation about a possible rush to expedite spending on renewable energy projects. Already, there has been a notable uptick in expenditures. In the past month alone, approximately $6 billion has been allocated for such projects.
The Environmental Protection Agency (EPA) recently announced a $4.3 billion investment in community-driven climate action initiatives. Meanwhile, the Department of Energy revealed plans earlier in July to invest $1.7 billion in retooling auto factories for electric vehicle production.