The White House announced what it describes as the largest investment in rural electrification since the 1930s. President Joe Biden unveiled plans to provide more than $7.3 billion in financing to rural electric cooperatives across 23 states. These funds will support the generation of clean energy for approximately 5 million people, benefiting 20% of the nation’s rural households, farms, businesses, and schools.
“This is the most significant transformative investment in electricity and electrification and clean energy for rural America since FDR’s New Deal nearly 90 years ago,” Biden said. “So, rural America is empowered to lead our clean energy future.”
The administration said this investment is projected to prevent over 43 million tons of greenhouse gas emissions annually, which it equated to removing more than 10 million cars from the road each year. Officials also asserted that this funding will help reduce electricity bills for rural communities, which often face higher energy costs due to the logistical challenges of delivering power to remote areas.
“It means covering the upfront cost of clean energy so rural families can save on their energy bills and get just a little more breathing room at the end of the month,” Biden said. “You deserve the same resources as folks in our cities and our suburbs. That’s what today’s announcement was all about, generating rural power for rural America.”
However, the plan drew criticism from both energy and environmental groups. The Alliance for Wise Energy Decisions labeled the initiative as politically motivated and questioned the scientific validity of the clean energy technologies being promoted for these rural areas. Meanwhile, environmental policy researchers at the Competitive Enterprise Institute said there is just not a desire for these types of renewable power projects in most rural American communities.
The funding for this initiative is part of the broader Inflation Reduction Act, a cornerstone of Biden’s climate policy. This legislation, which aims to address climate change through significant investments in clean energy, is estimated to have a total cost of $780 billion by 2031.
