CHARLESTON — West Virginia officials say they are in contact with administration officials after an executive order from President Donald Trump earlier this week put payments from the bipartisan infrastructure bill and the Inflation Reduction Act on pause.
On Monday following his inauguration for a second non-consecutive term, Trump ordered all federal agencies to pause disbursement of funds appropriated through the 2022 Inflation Reduction Act or the 2021 Infrastructure Investment and Jobs Act.Section 7 of the executive order, titled “Terminating the Green New Deal,” requires all agency heads to submit a report to the White House’s Office of Management and Budget and the National Economic Council within 90 days reviewing all processes, policies, and programs for issuing grants, loans, contracts, and other items connected to the two laws to ensure the funding doesn’t violate other sections of the executive order.Section 2 of the executive order sets out the policy goals of the U.S., including encouraging energy exploration on-shore or off-shore, establishing the U.S. as a leading producer of rare earth minerals used in batteries and electronics, ensuring a ready supply of energy, making sure regulatory requirements are within the purview of federal law, eliminating electric vehicle mandates, and safeguarding American access to goods.The $737 billion Inflation Reduction Act, negotiated by former U.S. senator Joe Manchin, included $437 billion in spending on new investments in clean energy, climate change mitigation, an extension of Affordable Care Act subsidies, and funding for western drought resiliency. It also included $300 billion for reduction of the national deficit.
The $1.2 trillion Infrastructure Investment and Jobs Act was negotiated by Manchin and U.S. Sen. Shelley Moore Capito, R-W.Va. West Virginia is expected to receive between $6 billion and $8 billion from the bill for hard infrastructure projects, including billions of dollars in investments for broadband expansion, roads and bridges, public transportation, clean water and wastewater, and clean energy research and environmental mitigation.Capito, speaking to reporters Thursday afternoon on her weekly virtual briefing from her offices on Capitol Hill, said she does not believe that the executive order pauses any funds that have already been obligated to projects.“I think that we’re going to be in good shape here as we move forward,” Capito said. “But we need to make sure – and I think the administration is going to make sure and DOGE (Department of Government Efficiency) as they get involved – they’re going to make sure that we’re spending money on the right things at the right time.”Gov. Patrick Morrisey, answering questions Thursday morning during a press conference at the State Capitol Building, said he was in conversations with Trump administration officials. He encouraged anyone adversely effected by the executive order to reach out to the Governor’s Office.
While Capito expects that most funding in the bipartisan infrastructure bill will be fine, she predicts that funding in the Inflation Reduction Act may run into a roadblock with the Trump administration. While various tax credits in the IRA may be unaffected — such as tax credits benefits projects like Form Energy in Weirton or the BHE Renewables/TIMET project in Jackson County – other funding could be hampered.“The IRA, that’s probably a different story,” Capito said. “A lot of their grant dollars have not gone out and have not been obligated…They will be putting a pause on any money further going out, and I would imagine in the IRA that money will go away. I don’t think it will go forward. In terms of tax credits that Form Energy has taken advantage of, I don’t see those being disturbed at all.
