When President Biden signed the Inflation Reduction Act in August 2022, he called it a law for the future – focused on delivering long-term progress and prosperity for American families. The law represents a historic investment in building a clean energy economy powered by U.S. workers, innovators, and manufacturers.
The Act offers a mix of grants, loans, tax credits, and rebates to accelerate clean energy, reduce pollution, and support economic growth. Many tax incentives reward projects in low-income and energy communities or those that meet job quality and domestic content standards – advancing the President’s vision of inclusive, middle-out economic development.
Alongside these tax measures, billions in grants and loans will fund clean energy and climate projects, especially in underserved areas, aligning with the Justice40 Initiative to deliver 40% of benefits to disadvantaged communities.
Federal, state, local, and Tribal governments will collaborate to implement the Act, with the federal government providing coordination, transparency, and technical support. This guidebook outlines available programs and eligibility. Visit CleanEnergy.gov for the latest updates.
President Biden sees climate action as a chance to cut costs, boost jobs, and ensure America leads in clean energy. We’re committed to making this vision a reality.
Equity, Jobs, and Justice: How the Inflation Reduction Act Supports All Communities
The Inflation Reduction Act is central to President Biden’s plan for long-term economic growth, which is rooted in investing in American workers and communities. It ensures clean energy investments create good-paying union jobs, uplift working families, and support historically overlooked areas, including those burdened by pollution.
Working Families
This legislation promotes high-quality jobs, especially for underrepresented workers in manufacturing and construction. Clean energy tax credits reward projects that pay prevailing wages hire apprentices, and use American-made materials. It also opens opportunities for small businesses, especially those owned by women and minorities.
Environmental Justice
The law expands President Biden’s Justice40 Initiative, directing 40% of climate and clean energy benefits to disadvantaged communities. It includes a $3 billion environmental justice grant program and invests in cutting pollution from ports, trucks, and transit systems in vulnerable areas.
Tribal Nations
Tribes receive targeted funding, including $225 million for climate resilience and $150 million for clean energy in Tribal homes. Tribes are also eligible for clean energy tax incentives and grants across the Act.
Energy Communities
Communities struck by coal plant closures and job loss receive support through bonus tax credits and a new DOE loan program to repurpose outdated energy infrastructure for clean uses.
Rural America
The law boosts rural energy access, climate-smart agriculture, and biofuel projects. Financial support and conservation incentives benefit farmers and ranchers, especially those impacted by disasters or the pandemic.
Driving Clean Energy Innovation and Deployment with the Inflation Reduction Act
The Inflation Reduction Act marks the most significant U.S. investment in clean energy, introducing over 20 tax incentives and billions in grants and loans. These initiatives aim to accelerate clean energy adoption, lower energy costs, and create well-paying jobs – especially in low-income, underserved, and pollution-burdened areas.
To meet President Biden’s climate goals – including 100% carbon-free electricity by 2035 – the law prioritizes rapid deployment of proven clean technologies and supports the development of innovative solutions. Funding targets disadvantaged and energy communities to ensure inclusive benefits.
Key Investments Include:
Clean Energy Tax Credits: Extended and modified Production and Investment Tax Credits will transition to technology-neutral credits, with bonus incentives for projects in energy or low-income communities that meet wage, apprenticeship, and domestic content standards.
$27 Billion Greenhouse Gas Reduction Fund: Competitive EPA grants will support clean energy and climate projects, with at least 40% of benefits going to disadvantaged communities under the Justice40 Initiative.
$40 Billion in DOE Loan Authority: Backed by $3.6 billion in credit support, the Department of Energy will guarantee loans for innovative clean energy projects, including renewables, carbon capture, and clean manufacturing.
Together, these programs aim to build a cleaner, more resilient energy economy powered by American innovation.
Building Climate-Ready Communities: Strengthening U.S. Resilience
From wildfires and droughts to hurricanes and rising temperatures, climate change is reshaping life across the country. As the U.S. works urgently to reduce emissions, the nation must also prepare for the impacts already unfolding. The Inflation Reduction Act (IRA), alongside the Bipartisan Infrastructure Law, brings a new wave of investment focused on climate resilience, especially for communities that are underserved, overburdened, or directly in harm’s way.
Protecting Vulnerable Communities from Climate Hazards
Many U.S. communities – particularly in the West, along coastlines, and across Tribal and Insular lands – face increasing threats from floods, droughts, and extreme weather. Low-income and historically marginalized groups are often at the most significant risk, living in areas more prone to natural disasters with limited resources to prepare or recover. The IRA enhances climate adaptation efforts by funding projects that safeguard domestic water access, bolster drought resilience, and deliver targeted support to Tribal and vulnerable communities.
New Investments in Climate Resilience
The IRA builds on the nearly $38 billion allocated through the Bipartisan Infrastructure Law for climate preparedness. It introduces additional financial and technical resources for communities facing worsening droughts, water scarcity, and infrastructure challenges. These programs aim to protect lives, public health, and ecosystems – especially in the Western U.S. and on Tribal lands.
Climate Resilience Funding Overview
Agency
IRA Section
Program Name
Amount
Department of the Interior
50231
Domestic Water Supply Projects
$550,000,000
Department of the Interior
50232
Canal Improvement Projects
$25,000,000
Department of the Interior
50233
Drought Mitigation (Colorado River Basin and similar regions)
$4,000,000,000
Department of the Interior
80004
Emergency Drought Relief for Tribes
$12,500,000
Department of the Interior
50241
Climate Change Technical Assistance for Territories
$15,900,000
Department of the Interior
80001 (a, c)
Tribal Climate Resilience Programs
$225,000,000
Department of the Interior
80001 (b)
Tribal Climate Resilience: Fish Hatchery Operations & Maintenance
$10,000,000
Department of the Interior
80002
Native Hawaiian Climate Resilience
$25,000,000
These investments reflect a whole-of-government approach to building a safer, more climate-resilient America that empowers communities to lead their own local solutions while receiving strong federal support.
Mary Watson
