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The precarious future of the Inflation Reduction Act


Introduction

The Inflation Reduction Act (IRA) was signed into law by President Joe Biden on 16 August, 2022. The act is a landmark legislative action that presented the largest clean energy investment program in the U.S. history. Over two years into its initiation, several provisions of the program are under the risk of a roll back. President Donald Trump has signed an executive order named “Unleashing American Energy” on his first day in the Oval Office, ordering to freeze the disbursement of all IRA related funds. In March, EPA’s Greenhouse Gas Reduction Fund took the first hit with over a $20 billion spending cut. The future for the rest of the program is uncertain. The administration is expected to target several provisions concerning tax credits and federal loan programs. However, a full repeal at the legislative level is unlikely, as the Republicans are far from reaching a consensus with biggest beneficiaries of the program