In a move that could significantly impact the clean hydrogen sector, President Donald Trump has ordered an immediate suspension of funding under the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA). This decision, part of Trump’s broader effort to dismantle what he terms the “Green New Deal,” was made official shortly after his inauguration.

Both acts had previously set the stage for extensive subsidies within the clean energy sector, including a notable $7 billion earmarked for seven regional clean hydrogen hubs and potential hydrogen production tax credits up to $3/kg under the IRA. The suspension mandates a comprehensive review of all related grants, loans, and financial distributions.

The executive order, which Trump refers to as addressing the “Green New Scam,” pauses all federal agency disbursements associated with his predecessor, Joe Biden’s climate laws. This includes commitments by the Department of Energy, which has already allocated over $170 billion in grants and loans for various energy projects, and the Environmental Protection Agency, which has distributed 93% of its IRA grant funding.

The move reflects Trump’s campaign promises to roll back unspent governmental expenditures to fund planned tax cuts. Despite the freeze on funds, reclaiming already committed resources poses significant challenges for the administration.

This policy shift not only stalls the progression of clean hydrogen initiatives but also signals a broader rollback of climate-related measures, including the potential elimination of the “social cost of carbon” metric used to estimate the economic impacts of global warming.

This policy shift not only stalls the progression of clean hydrogen initiatives but also signals a broader rollback of climate-related measures, including the potential elimination of the “social cost of carbon” metric used to estimate the economic impacts of global warming.

The move also includes terminating Biden’s American Climate Corps program, an initiative inspired by the New Deal but focused on combating climate change. The Environmental Protection Agency has also been instructed to reevaluate the “social cost of carbon,” a key measure in policy-making for climate-related initiatives.

This executive action marks a decisive halt in the momentum towards a greener economy, posing significant challenges for the future of renewable energy projects and the overall environmental strategy in the U.S.

https://fuelcellsworks.com/2025/01/21/clean-energy/uncertainty-hits-u-s-hydrogen-funding-as-trump-halts-clean-energy-subsidies