Since the inauguration of the Trump Administration, the status of several kinds of funding has been thrown into question. Amid conflicting reports of a federal funding freeze of a wide variety of programs and their recission, over the weeks multiple states and entities have reported difficulty in accessing their obligated, awarded federal funding. These include millions from programs impacting residential, commercial, and public buildings, such as Solar for All and the two federal Home Energy Rebate programs.
To attempt to clear up some of this confusion and to provide an update as to the status of building electrification and decarbonization dollars, this Data Story asks: What federal funding from IIJA and IRA is still available to be awarded, by building type and activity?
IIJA and IRA Injected Billions into Building Decarbonization
Buildings Hub’s Federal Policy and Funding Dashboard tracks federal funding available for building electrification and efficiency upgrades under the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA). Of the initial $95.8 billion for buildings and buildings-related work in the two laws, residential buildings were eligible applicants for the largest sums: $84 billion for multifamily buildings and $83 billion for single-family buildings (Figure 1). Almost all of this funding was intended to be expended before fiscal year 2025. At this juncture, about $7 billion from these bills is left to be spent. IIJA and IRA funding relating to manufacturing were not included in this sum.
Figure 1: Initial IIJA and IRA Buildings Funding by Source and Eligible Building Type
Source: Atlas Buildings Hub Federal Policy and Funding Dashboard | Some programs cover multiple building types, so eligible funding by building type in the bar chart does not add up to total funding in the donut chart.
Public and commercial buildings were eligible for $36 billion and $35 billion, respectively. Funding eligibility can vary by building type, thus the total eligible funding across building types may exceed that from individual sources. The majority of this funding continues to flow from the IRA, with almost 40 percent of total funding coming in the form of tax credits issued by the Department of Treasury (Figure 2). An additional $37 billion was initially available competitively, with a substantial $13 billion being allocated and then sub-granted by states via formula funding programs.
Figure 2: Eligible Buildings Funding by Agency, Type, and Program
A large fraction of eligible funding is pointed at increasing clean electrification and increasing energy efficiency in the existing building stock. Only $2.4 billion is pointed toward new construction, while a majority is focused specifically on electrification and energy efficiency.
At the close of the Biden Administration, the Climate Program Portal tallied allocated, awarded, and remaining funding from IIJA and IRA. These encapsulate 52 total programs, 25 from IIJA and 27 from IRA. From the about $99 billion available for buildings, about $55 billion has been awarded; this total excludes tax credits such as the $22 billion Residential Clean Energy Credit (25D) and the $12.5 billion Extension, Increase, and Modification of Nonbusiness Energy Property Credit (25C). This leaves about billion on the table for continued building decarbonization and electrification through fiscal year 2026.
The Status of Major Federal Programs is Uncertain
While it may appear that $7 billion is left to be awarded, in truth this sum is likely different due to a couple of factors. The first is the sub-granting of formula dollars at the state level — or the second round of granting, from the federal recipient to the actual benefiter of the federal funding — and the second involves the repercussions of the federal funding freeze.
Two programs exemplifying both of these strains are the federal Home Energy Rebates, the Home Energy Performance-Based, Whole-House Rebates (HOMES, which is implemented as the Home Efficiency Rebates) and the High-Efficiency Electric Home Rebate Program (HEEHRA, which is implemented as the Home Electrification and Appliance Rebates). Altogether, these programs represent an investment of over $8.8 billion in state governments and Tribal Nations to administer consumer rebates for a slew of building energy efficiency upgrades, which can include decarbonization and electrification measures.
Every U.S. state and territory participates in the program, except for South Dakota. These programs differ at their jurisdictional level as governments can design their programs how they wish, within legislative bounds. The Home Efficiency Rebates program is a whole-home efficiency rebate program with incentives distributed based on measured or modeled energy savings generated from household upgrades. Contrastingly, the Home Electrification and Appliance Rebates provide immediate point-of-sale rebates for the purchase and installation of appliances and associated infrastructure itemized by the state, territory, or Tribal government.
Almost all this funding was awarded by the U.S. Department of Energy before the Biden administration exited the White House. The Climate Program Portal’s Outcomes Dashboard tracks about $8.5 billion in awards from the federal Home Energy Rebate programs, including $349 million awarded to territory governments and $218.3 million to Tribal Nations through the appliance rebates program (Figure 3). However, fewer than half of states and territories have officially launched their federal Home Energy Rebate programs.
Figure 3: Awarded and Remaining HOMES and HEEHRA Funding by Recipient Type
In the wake of the federal government’s review of a slew of environmental programs and pauses on federal outlaying of funding, several states have paused their programs or delayed their launches; these states include Arizona, California, Colorado, and Rhode Island, although California has since unpaused the program as federal funds become available. These states all paused the Home Electrification and Appliance Rebates arms of their federal Home Energy Rebates, while Colorado is also pausing its Home Efficiency Rebates. Some states, like Maine and North Carolina, are continuing to run their programs, although they are monitoring the federal landscape.
Regardless of these pauses, it is opaque at the state level the amount of funding from these programs that have already been sub-awarded. Consumers rely on consistent communication from the state agencies managing them. As a result, it is critical that these bodies prioritize alerting in-state consumers — particularly those low-income consumers that are eligible for a greater fraction of these benefits — as their respective funding pots dwindle.
Similar critiques on the need for transparency can be applied to the $7 billion subsection of the Greenhouse Gas Reduction Fund’s (GGRF) Solar for All program. The program is meant to boost access to residential rooftop solar in low-income communities. While the entirety of its funding has been awarded to states, it is unclear the amount that has already been outlaid, meaning they could be subject to recission. These funds were awarded in April 2024 to 60 entities, including 25 states and territories, a handful of Tribal and local governments, and a substantial number of NGOs (Figure 4).
Figure 4: Awarded Solar for All Funding by Recipient Type
Solar for All’s funding was frozen on January 29th by the Environmental Protection Agency (EPA) , but then unpaused by the agency on February 26th. Entities from states including Georgia, Maine, Nevada, New Hampshire, and New Mexico began to announce that they were once again able to access the payment system where they can request reimbursements from their awarded sums. This funding is available at a time when rooftop solar is on under eight percent of households in all states as of the 2020 Residential Energy Consumption Survey (Figure 5). Other states like Louisiana and Pennsylvania have yet to launch their programs, but officials in these states have voiced uncertainty about the federal situation.
Figure 5: Residential Rooftop Solar Deployment, 2020
Source: Energy Information Administration.
Tracking the funding with specificity is difficult, as about $1.4 billion was made to groups with projects in multiple states. Additionally, it would require constant reporting from state, territory, and Tribal Nation governments as well as non-profits to measure the dollars that are actually still available.
Further, there is still a chance that the federal government attempts to claw back this funding, especially as the other two arms of GGRF funding are in court over their $20 billion in awards being rescinded by EPA. A federal judge ordered that the EPA was temporarily unable to take back the funds on March 18, 2025, while another noted on April 2 that EPA has not provided enough evidence to back up its claims. Proceedings over the case are ongoing. This uncertainty over Solar for All funding is reflected in statements from a technical advisor for the New Mexico Public Regulation Commission, who highlighted that the state had to act with urgency to distribute the funds as quickly as possible. The official’s worries crystallized with the March 19, 2025 announcement that the EPA would be conducting an audit of the Solar for All program.
According to the EPA, other federal funding for buildings has been cancelled, including $100 million in funding for low-carbon construction materials. This funding has already been obligated and so it remains to be seen if the funding can indeed be cancelled by the agency. Further, an executive order signed March 14, 2025 revoked the Biden Administration’s use of $500 million from IRA and the Defense Production Act of 1950 to build out domestic manufacturing of heat pumps. Of the $500 million appropriated for the program, as of the end of the Biden administration, about $254 million had been awarded according to the Climate Program Portal’s Outcomes Dashboard. This funding may or may not be clawed back.
The Future of These Programs Requires Federal and State Cooperation
The Inflation Reduction Act made $95.8 billion available for buildings and buildings-related work, of which $55 billion has been allocated and about $33.5 billion estimated for tax credits. Amid uncertainty around the availability of allocated and unallocated funding, however, the amount of money states can access for residential, commercial, and public buildings, as well as for buildings-related manufacturing, is currently unclear. States do not uniformly publish how they spend the money they make available through their federally sponsored programs. Additionally, as evidenced by programs such as the Home Energy Rebates, the Greenhouse Gas Reduction Fund, and Solar for All, it is unclear that grantees will always be able to access the funds they have been awarded. As a result, states will likely prioritize the subgranting and spending of any and all federal funds that have been provided, and Atlas Buildings Hub will continue to track the developments over the next several months.
