GOP districts to lose big if Trump halts clean energy factories

Since former President Joe Biden signed the Inflation Reduction Act in August 2022, cleantech companies have announced $129 billion in clean energy factory plans, with over 80% of this investment going to Republican congressional districts. But these plans are threatened by actions from the Trump administration, which has halted funding from the Inflation Reduction Act and 2021 infrastructure law, delaying key projects like electric vehicle and other clean energy facilities. If clean energy and transportation tax credits are repealed, the news would be even worse for states previously reaping the benefits brought by the federal incentives for clean energy manufacturing. 

Recently, several manufacturers, including Heliene, Kore Power, and Freyr Battery, have canceled or paused U.S. factory plans due to uncertainty around federal incentives. The slowdown in investment, dropping to just $176 million in January 2025, signals that the clean energy manufacturing boom may be stalling, and American communities suffering, under the Trump administration’s aggressive stance on Biden-era policies.

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