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More than $760 million from the Inflation Reduction Act’s Green and Resilient Retrofit Program is still caught in legal limbo — but no one seems to have noticed.

When a federal judge put an injunction on the Trump administration’s efforts to freeze Inflation Reduction Act funding back in April, many grantees were able to pick up their clean energy projects where they left off. But not everyone.
Some 100 low-income housing providers that won more than $760 million in grants and loans from the IRA’s Green and Resilient Retrofit Program to make critical safety and energy upgrades to their buildings are still in limbo. The U.S. Department of Housing and Urban Development will not respond to their questions about if or when projects can move forward, and also fired all of the third-party contractors that had been hired to implement the program.
While these developers are certainly not the only ones locked in a bureaucratic standstill — a lawsuit aiming to unlock money from the Greenhouse Gas Reduction Fund is still wending through the courts, and many states are waiting to hear whether they’ll ever get funding for their home energy retrofit rebate programs — their plight has so far been overlooked, raising the risk that the money could quietly disappear.
The Green and Resilient Retrofit Program addressed a known funding gap for affordable housing preservation. Low-income housing providers operate on tight margins and often struggle to pay for regular maintenance, let alone to make upgrades to their buildings. On top of that, many of the buildings that receive other subsidies from HUD are barred from taking on debt for improvements.
“So what do you do if your building is now 40 years old and it needs upgrades?” Juliana Bilowich, the senior director of housing operations and policy for Leading Age, a nonprofit focused on affordable senior housing, said to me. “There are some housing communities that haven’t had air conditioning for years because the HUD budget won’t support it, or it’s broken and it needs to be upgraded, but there’s no funding they can get to do that.”
That was the case for The Towers, a 20-story senior living center in New Haven, Connecticut, except the building was nearly 60 years old. While its individual apartments have air conditioning, there’s no HVAC system serving the hallways where residents have to wait for the elevator. “The summertime is horrible,” Gus Keach-Longo, the president and CEO of The Towers, told me.
While the building has made cosmetic improvements over the years, it hasn’t done major efficiency or structural work outside of installing LED lightbulbs, Keach-Longo told me. A recent assessment of the building scored it at a 7 out of 100 for energy efficiency. In addition to an HVAC solution, the building needed a new roof and windows.
The Green and Resilient Retrofit Program looked like it could be a lifeline for Towers residents. For one, it was uniquely flexible. The funds could be used for a wide range of projects, as long as they reduced the building’s emissions, improved its energy or water efficiency, or made it more resilient to flooding, extreme heat, or other weather-related hazards.
Billowich called the program a “linchpin” for buildings that didn’t have the ability to go to the bank and get a loan. “This was the way that housing communities were going to be able to continue operating.” Applicants planned to insulate their pipes so they didn’t burst during a cold front, or replace their windows to save money on energy and protect residents from wildfire smoke. The funds could also be leveraged to raise additional money for other kinds of repairs. The resulting energy savings could then be put toward expanding services for residents.
The $1 billion program was divided into three streams of funding. A building owner could get up to $750,000 per property under the “Elements” stream to supplement existing retrofit plans with green upgrades like solar panels. The “Leading Edge” stream supplied up to $10 million for more involved projects and required the building to ultimately meet a green certification, such as Passive House or LEED. The “Comprehensive” stream was designed to facilitate more complicated, full-building retrofits that required significant technical assistance to plan. Grantees could get up to $80,000 per unit, or $20 million total, but they would have to work with HUD-employed contractors that would scope out and oversee the project.

The Towers applied for a Comprehensive grant and was one of just a few properties to win the full $20 million. But since signing a contract for the award last July, Keach-Longo said his team has “heard almost nothing.” They were supposed to be assigned a Multifamily Assessment Contractor, or MAC, the term for the HUD-employed contractor that would oversee the project, but the Biden administration never got to it. When the Trump administration came in, it halted the program as part of the larger IRA funding freeze. On February 12, HUD terminated its contracts with all five of the companies it had selected to serve as MACs, including big consulting firms like Deloitte and Ernst and Young. HUD did not respond to emailed questions for this story.
Margaret Salazar, the CEO of REACH Community Development in Oregon, has also been “stuck in a holding pattern” regarding her organization’s two Comprehensive awards. “We want to do right by what we’ve communicated with residents that we are making these repairs. We want to involve them in the process. And now we’re hanging out there without any path forward,” she told me.
When the funding freeze first went into effect in March, an affordable housing operator in the Boston area called the Codman Square Neighborhood Development Corporation, which had won an Elements grant, joined a lawsuit filed by five other nonprofits that challenged Trump’s pause. In April, the district court judge overseeing the case issued a preliminary injunction barring HUD and other agencies from maintaining any program-wide freezes.
The agency complied, in part. HUD sent a letter to awardees notifying them of the injunction and resumed processing reimbursements for Elements and Leading Edge grants. Ron Budynas, the chief operating officer for an affordable senior housing provider called Wesley Living, which won 10 separate awards from the program, told me he’s been able to proceed with his three Elements projects. He’s already completed one, upgrading an apartment complex in Lexington, Tennessee, with high efficiency heat pumps, and is now working on the others, installing solar and battery backup systems at two other properties in Tennessee.
His remaining seven are Comprehensive projects, however, and are “a whole different story,” he said. “Every time I’ve written to the [Green and Resilient Retrofit Program] staff, the only answer I get back from them on the Comprehensive grants is ’we’re still waiting for direction from headquarters.’”
Budynas was much further along than Keach-Longo at The Towers by the time Trump came into office. He said he was already working with a MAC and had completed a capital needs assessment on five of the properties; the next step was to scope out the work. He told me he contacted HUD after the court’s injunction and asked whether his team could put together the scope for one project to move it forward, but the agency told him no, since the program rules say that the MAC has to do it — even though it had fired all of the MACs.
Then the reconciliation bill that Congress passed earlier this month rescinded $138 million from the program — money set aside for administrative costs and technical assistance, i.e. to pay for the MACs. “How do we go forward if the MAC has to do the scope and they don’t have any money to pay the MAC?” Budynas said. Six of the seven Wesley Living properties that won Comprehensive awards receive HUD subsidies that preclude them from using other types of financing, “so there’s no way for us to update those properties if the Comprehensive doesn’t go forward,” he said.
It’s unclear whether any of this will be addressed in the lawsuit, since the only plaintiff in the case that challenged HUD — Codman Square — has been able to progress with its Elements award. I reached out to Democracy Forward, the nonprofit legal organization that is representing the plaintiffs, but it declined to comment.
Beth Neitzel, a partner at the law firm Foley Hoag, which is not involved in the case, told me this might be an unfortunate gray area for the Comprehensive award winners. She said the lawyers could argue that HUD is violating the terms of the injunction, but the government could respond that no one in the case is being injured by its actions.
“I don’t know if that will carry the day. It seems pretty clear they are violating the terms of the preliminary injunction by not unfreezing that fund,” Neitzel said. “But there is that potential wrinkle that they will argue that’s not an issue here because nobody here has standing to challenge that.” As a matter of law, she added, it’s irrelevant that HUD fired the contractors overseeing the program since the program itself was congressionally mandated.
Meanwhile the grantees wait, and the consequences of the delay stack up. Salazar, of REACH in Oregon, told me the organization missed out on an opportunity to get additional funding from the Portland Housing Bureau because it hadn’t been able to scope out the project with its MAC.
“This isn’t just money on the line. This is the future of these affordable housing communities,” Bilowich said. “That is a blue issue, that’s a red issue, that’s everybody’s issue. And so we need a solution, and this was the most efficient and cost-effective solution that everybody had come up with.”
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After taking two seats in a special election last year, the party gained a third in the midterms.
Democrats claimed two seats on the Georgia Public Service Commission in a special election last year, ending almost 20 years of unanimous Republican control over the regulator.
One of those winning Democrats, Peter Hubbard, ran again this year for a full six-year term in a rematch against Republican Fitz Johnson. The other open seat this year saw Sheila Edwards running in an open race against Republican Josh Tolbert.
Both Hubbard and Edwads won, securing a 3–2 Democratic majority on the Public Service Commission.
“Over the last 12 months, Georgian consumers have made one thing clear: They are tired of rising utility bills and they are hungry to see change. Georgia’s sea change moment for energy policy has arrived,” Charles Hua, the executive director of the utility-focused advocacy group PowerLines, told me.
The Democrats have not been shy about what their priorities will be on the commission.
“Winning control of the Georgia Public Service Commission means prioritizing lowering power bills instead of constantly increasing corporate profits, ramping up the deployment of clean energy technologies, and focusing the people in our decision-making as state regulators,” Hubbard said in a statement on his website.
Edwards, for her part, made it clear where she stands on data centers specifically in an October debate with Tolbert. “They came into our communities,” Edwards said. “They didn’t pay any taxes. They are using our water, using our electricity, and they’re being a public nuisance to the communities that they’re coming into.”
Hubbard also talked about data centers on Heatmap’s Shift Key podcast back in June. “I advocate for a whole-of-government approach, because while the Public Service Commission really only has oversight over the power side of things — where that power comes from and how much data centers are paying on their tariff — there’s much larger issues in terms of water use, in terms of the tax incentives,” he told my colleague Robinson Meyer. “The estimate is $3.5 billion in tax abatements this year in Georgia, uncollected revenue that data centers otherwise would be willing to pay.”
The race has seen outsize spending and interest from major figures not accustomed to dealing in utility regulator races. (Just 10 states have elected utility commissions, period.) Kamala Harris appeared at a virtual fundraiser for the Democratic candidates in Georgia, as well as Democratic hopefuls to the Arizona Corporation Commission. The solar energy industry spent hundreds of thousands of dollars in support of the Democrats in Georgia. Meanwhile, anonymous donors pumped millions of dollars into Tolbert’s bid.
Democrats swept into the Georgia PSC last year on a wave of dissatisfaction with rising electricity prices, especially rate hikes attached to the construction of two new nuclear reactors at the Vogtle Electric Generating Plant, which ran years behind schedule and billions of dollars over budget. In the runup to the election, the PSC approved a three-year base rate freeze proposed by Georgia Power in an attempt to head off public dissatisfaction.
In the past year, rates in Georgia have gone up by less than 1% across the state on average, according to the Heatmap-MIT Electricity Price Hub, while rates are up over 18% in the last three years and over 6% in the past two years.
Shares in Southern Company, the parent company of Georgia Power, were down slightly more than 0.5% in after-hours trading Tuesday night.
Restoring renewable tax credits and investigating Energy Department funding cuts are on the table.
The United States is set for a divided government for the first time since Donald Trump’s return to the White House last year. Voters across the country overwhelmingly cast ballots for Democrats, handily securing the party’s control of both the House of Representatives and the Senate. The victory came hours before polls closed in the nation’s westernmost reaches as Democrats flipped seats held by the GOP for decades in states such as Georgia, South Carolina, and Texas.
It was a seismic national shift to the left, spurred in no small part by voters’ opposition to infrastructure supporting artificial intelligence and anger over rising gas and electricity prices, particularly since Trump launched a war on Iran.
In an election widely seen as a referendum on Trump, Democrats trained their fire on the administration’s energy policies. Those include its moves to eliminate landmark climate regulations, its oversight of the U.S. buildout of data centers, its legally dubious deals to kill offshore wind farms, and repeals or redirections of funding for decarbonization.
Much of what the next Congress focuses on when it comes to energy policy hinges on what happens with the Bipartisan American Affordability and Jobs Act, the permitting reform bill that has dominated Washington dealmaking discussions since the Senate unveiled the legislation at the end of September.
But key provisions in two of the most significant energy laws enacted in the past six decades — the Infrastructure Investment and Jobs Act of 2021, better known as the Bipartisan Infrastructure Law, and the Energy Act of 2020 — have either expired or are set to lapse next year. Reauthorizing the bipartisan measures in both laws will offer a new, Democrat-led Congress the chance to push legislative priorities such as bringing back key subsidies for renewables in a bid to rebalance the country’s energy future following Trump’s AI-fueled gas bonanza. Candidates who flipped districts that previously voted for Trump also vowed to crack down on data centers, which strongly suggests that the party will back legislation to curb the artificial intelligence buildout.
Among the top policies Democrats plan to champion next year on clean energy is the restoration of the investment and production tax credits for wind and solar, which Republicans axed in their signature budget bill last summer.
“There’s broad recognition and an active effort by Democrats to reinstate many things done away with in the One Big Beautiful Bill Act,” Evan Chapman, a former Democratic staffer on the Hill who now serves as the senior director of policy at the think tank Clean Tomorrow, told me.
Bringing back the electric vehicle tax credit? Not so much. The provision in the 2022 Inflation Reduction Act gave a far larger write-off for cars made with batteries manufactured with domestically-produced minerals, giving a much-needed boost to U.S. miners. Yet the policy proved difficult to defend against populist anger over its benefits tilting largely toward wealthy drivers who bought electric vehicles as a second or third car.
The EV tax credit was another OBBBA casualty. Without that market signal, it seemed unlikely that all the decades-long mining and minerals projects proposed in the U.S. would find investors, illustrating what my colleague Matthew Zeitlin last year called the “paradox of Trump’s critical mineral crusade.”
But a battery boom is underway nevertheless, as large, standalone lithium-ion packs increasingly patch onto the grid to balance out supply over time, particularly in markets that generate a lot more solar and wind during the day than anyone can use.
“Batteries generally are an area of more and more confluence every day between Democrats and Republicans,” a source with direct knowledge of Democrats’ thinking who spoke on condition of anonymity to speak bluntly told me. “It’s unclear what anyone wants to do. Republicans don’t want to do more EV tax credits, but it could be a battery production tax credit that’s technology neutral.”
Asked whether such a policy could win GOP support, James Dozier, the chief executive of the Republican climate group Citizens for Responsible Energy Solutions, told me that anything that would boost domestic mineralsrepresented an area of broad agreement between the two parties. The Trump administration has strongly supported domestic mining and mineral processing as China retaliated against the president’s trade war by cutting off supplies of metals needed for weapons and batteries.
“Battery technology should be invested in,” he said.
Other bipartisan priorities with a high likelihood of legislative success include federal funding for or regulatory changes to make it easier to deploy geothermal energy, fusion, and nuclear fission.
Another top issue is the expansion of the Department of Health and Human Service’s Low Income Home Energy Assistance Program. Known as LIHEAP, the roughly $4 billion program provides funding to poor Americans struggling to pay utility bills in the winter. The program, administered through states, also funds home renovations to better insulate drafty houses and lower bills, offering a key tool to make good on Democrats’ promises to help rein in soaring utility costs. While Trump has proposed eliminating the program’s funding almost entirely, Congress ultimately added $20 million to LIHEAP’s budget in the last cycle.
The Democratic caucus is poised to include far-left hardliners such as New York’s Darializa Avila Chevalier, whose energy proposals range from a nationwide ban on data centers to calling on the federal government to take ownership stakes in more wind and solar projects. But the larger the Democratic majority, the less power the ideologues on the fringes can wield, Josh Freed, who heads the energy and climate program at the centrist Third Way think tank, told me.
“If Democrats get anywhere close to 230 seats, there’s going to be both a much bigger bloc of New Democrats and moderate Blue Dogs than there is in this Congress,” Freed said. “You’re going to see an agenda much more oriented around delivery and affordability than anything that’s more ideologically rooted.”
For example, he said, progressives may push for a national moratorium on data centers or a freeze on utility rates. “Those are things that won’t pass, but that you might see a handful of members who have a lot of leverage in a very narrow House try to move forward, along with Medicare for All and other issues that are dealing with energy,” Freed said. “But the more seats Democrats have, the more seats you’ll have that represent rural, energy-producing, and blue-collar constituencies. It’s going to be a much more all-of-the-above focus.”
The potential to pass bipartisan policies through a divided government over the next two years doesn’t mean it’s all kumbaya on the energy and climate front. Newly-enthroned Democratic committee chairs in the House are expected to hold hearings and open probes into a variety of actions by the Trump administration.
Few cuts at the Department of Energy stung quite as painfully as the Trump administration’s decision to terminate the Industrial Demonstrations Program, a $6.3 billion initiative designed to help commercialize emerging technologies to clean up heavy industry. The program funded 29 projects in its initial round, but former officials told me last year that just three looked likely to survive the Trump administration’s cuts. Meanwhile, the Chinese government expanded its own version of the program to more than 100 projects. Expect Democrats to start asking questions.
The billions of dollars in deals the Trump administration has promised to companies that surrender their federal leases for offshore wind projects are already facing legal challenges as states such as New York and California advance lawsuits. These policies are also poised for congressional oversight.
Likewise, the Energy Department’s effort to redirect federal spending earmarked to support decarbonization is ripe for a probe by Democrats. Specifically, lawmakers are expected to query the agency’s use of a $500 million grant to steelmaker Cleveland-Cliffs to support the relining of a coal-fired blast furnace at its Ohio mill rather than the construction of cleaner iron-making equipment at the plant.
One more area set to draw scrutiny is Trump’s move to bring previously independent agencies — the Nuclear Regulatory Commission and the Federal Energy Regulatory Commission — under direct White House control.
“There’s going to be a lot more demand that these independent agencies regain their independence,” Paul Dickman, a former nuclear regulator who served in the George W. Bush and Obama administrations, told me. “Be that FERC, be that the NRC.”
In a statement late Tuesday night, the Sierra Club said its members had “organized, phonebanked, and knocked doors for these candidates up and down the ballot,” and now expected Democrats to “take ambitious action for the climate and our democracy.” The latter, the group made clear, meant going after the White House.
“They must hold the Trump administration accountable for its corruption and unlawful attempts to sacrifice the health and safety of our communities,” Sierra Club Executive Director Loren Blackford said, “and invest in a clean energy future for all of us.”
Editor’s note: This story has been updated to reflect the change in Senate control.
Current conditions: The polar vortex that keeps air circulating around the North Pole collapsed months ahead of schedule, threatening to send frigid temperatures southward • India’s east coast Andhra Pradesh state is facing down yet another major storm as Severe Cyclone Murasu makes landfall • The catastrophic atmospheric river over the American Southwest has dumped more than 20 trillion gallons of water across Arizona, Colorado, New Mexico, and Utah.
The average price of a gallon of gasoline during President Donald Trump’s second term topped $3.46 as of Monday, a record that exceeds the previous high set under the Biden administration. That’s according to a new analysis by the Financial Times. And that’s just the average across the past 22 months. The average price nationwide on November 2 clocked in at just under $4.17 per gallon. “If modern living boiled down to a price, it’s the price at the pump,” Bob McNally, a former energy advisor to the George W Bush administration and president of consultancy Rapidan Energy, told the newspaper. “Whether a voter is filling up that day or not, it’s likely that they see a pump price.”
Oil prices, meanwhile, plunged Monday on hopeful signals from Iran about potential progress in peace talks to end the war with the United States. West Texas Intermediate, the U.S. benchmark, fell nearly 8% to $96 per barrel. Brent crude, the global measure, dropped over 8% to $104 per barrel. Murban crude, the stuff that flows out of the United Arab Emirates and therefore faces the worst impacts from Tehran’s attacks on tankers exiting the Persian Gulf through the Strait of Hormuz, dove over 11%.
When energy researcher (and now Google wonk) Tyler Norris came out with his landmark paper last year arguing for data centers that can flexibly respond to conditions on the grid, my colleague Matthew Zeitlin quipped that the policy amounted to “one weird trick to get more data centers” online. ChatGPT-maker OpenAI is now making that trick routine. On Monday, the company announced its “grid protectors program,” under which it plans to make all the data centers serving its artificial intelligence software responsive to the grid wherever they’re located. That way, rather than drumming up neighbors’ concerns over power prices and blackouts, data centers are welcomed as assets that keep the lights on. “Power lines, substations and other grid infrastructure builds are a fixed cost whether demand is low or high,” the company said in a post on its website. “By using more electricity when the grid has room and reducing our use when it is under strain, we can help pay for that infrastructure while limiting the need for costly upgrades to meet peak demand. That can help keep costs down for other customers.”
When the Environmental Protection Agency rescinded its plans to restrict how much carbon dioxide U.S. power plants can emit, the Trump administration argued that shutting down the coal- and gas-fired stations that supply most of America’s electricity “would have no more than a trivial effect” on health outcomes due to climate change. But a lengthy new formal comment co-signed by eight of the largest mainstream green groups in the country said the EPA “misinterprets the Clean Air Act, ignores scientific evidence, and entirely misunderstands its own duty as the agency responsible for protecting public health and the environment,” and accused the agency of using its flawed approach as the basis for a “tectonic and unreasoned policy shift.” The remarks, which the Natural Resources Defense Council shared exclusively with me for this newsletter, was endorsed by a range of groups that includes the Clean Air Task Force, the Center for Biological Diversity, Earthjustice, Environmental Defense Fund, Sierra Club, and the Union of Concerned Scientists.
As part of the 271-page comment, the groups submitted a new analysis that projected emissions from U.S. power plants to cause $20.4 trillion in health-related damages by 2100. That’s nearly equal to the entire U.S. gross domestic product in 2024. “We present our own modeled scenarios, which illustrate the gravity of EPA’s technical errors and the sensitivity of the agency’s findings to inputs and assumptions,” the group wrote. “Under our alternate illustrative scenarios, U.S. power-plant emissions’ impacts on global temperature and sea level rise easily exceed EPA’s alleged de minimis thresholds, showing such impacts are in fact meaningful even under EPA’s flawed futility methodology.”
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A mining company with ties with two of Trump’s sons is preparing to go public. On Monday, The Wall Street Journal broke news that Kaz Resources plans to start selling shares next year through a direct U.S. listing after giving Donald Trump Jr. and Eric Trump a stake in a major tungsten project in Kazakhstan. The venture, a partnership with the Kazakh government, is part of a broader effort through Cove Capital, a mining prospector led by Australian-American executive Pini Althaus, to expand U.S. mineral deals in Central Asia. Originally, Althaus planned to bring Kaz Resources public through a special purpose acquisition company, or SPAC. But Althaus abandoned the SPAC deal Monday in favor of a direct listing. The move is likely to draw scrutiny after today’s election. “I would be surprised if we weren’t,” Althaus told the Journal. “There’s no smoking gun here.”
Meanwhile, Graphite One, a startup that has won over $2 billion in funding from the Export-Import Bank of the U.S., took a big step forward. On Monday, the company said the Ohio Environmental Protection Agency had issued the final air permit for its debut anode factory in the state. “Receiving the final Ohio air permit is an important step toward establishing a domestic synthetic anode material supply chain,” Graphite One CEO Anthony Huston said in a press release. “This approval advances Phase 1 plant toward first revenue and supports our goal of becoming the first U.S. company commercially producing synthetic graphite anode material.”

Nearly all major U.S. automakers are urging Congress to enact a permanent ban on Chinese vehicles when lawmakers reconvene next week for a short session following the midterm elections. On Monday, Reuters reported that a bipartisan group of Senators met in September to discuss fast-tracking a bill, but decided to hold off until after the November election. “We need to protect the U.S. market from a flood of Chinese imports that carry surveillance risk and disadvantage current manufacturers that have made generational investments in American communities,” John Bozzella, who heads the trade group Alliance for Automotive Innovation, told the newswire.
Detroit automakers may have been slow to take electric vehicles seriously. But the narrative around one of America’s biggest homegrown success stories, Rivian, may be focused on the wrong vehicle. While the California-based manufacturer’s R2 electric sports utility vehicle attracts attention, its humble commercial van — the one popularized by Amazon — “is turning into a secret weapon,” according to InsideEVs. The company’s latest earnings suggest the van is becoming a significant revenue driver.
The country’s largest utility will spend up to $7 billion on a battery buildout. Exelon, the largest U.S. regulated electric and gas company in the country, with six utilities serving 11 million Americans, plans to spend up to $7 billion to build as much as 3.5 gigawatts of battery storage. In an earnings call last week, the utility giant said that it is spending a minimum of $3 billion for at least 1.5 gigawatts of storage. “With regulated storage, we have certainty that projects get built, and control over when and how they’re deployed,” Robert Kleczynski, Exelon’s CFO, said during the call, according to Utility Dive. “We view utility-owned storage as one option alongside competitive development, not a replacement for it.”