
✒️ Through an executive order, the Trump administration has announced a freeze on $300 billion allocated under two key legislative achievements of the Biden era—the Inflation Reduction Act (hashtag#IRA) and the Bipartisan Infrastructure Law (hashtag#BIL).
⚖️ This includes funds already appropriated by Congress, an unusual measure which is likely to see significant legal challenges, as it seems to go directly against a 1974 law, the Congressional Budget and Impoundment Control Act, which was designed to protect Congressional spending power.
💸 So what does this mean for carbon dioxide removal (hashtag#CDR)? Tax credits, such as the 45Q $180/t support for DACCS, remain unaffected. This could, however, directly impact appropriated funds for the DAC Hubs programme ($3.5b) and the Public Procurement Prize ($35m).
🇺🇲 Looking to my American colleagues here: what is your take on this?
🏛️ My take: this drastic measure and headline is not the end of the story. We are already seeing concerned voices in Congress, even within the Republican party - whose states have benefitted tremendously from the funds in question. And there will definitely be appeals in American courts. Now we shall see how strong these institutions really are and whether they can contain the executive branch.
Comments