Biden pulled off a $370 billion miracle for the climate. Where did the money go? The IRA stands as the largest piece of climate legislation in US history. It triggered a boom in new factory construction and hundreds of thousands of new jobs. But two years later, much of that money remains unspent.

https://www.vox.com/climate/391681/inflation-reduction-act-biden-ev-credit-trump-musk

by mafco

5 comments

  1. I would say the single biggest limiting factor to the IRA funding getting spent is the way US utility companies are structured. Most own their own monopoly with no incentive to upgrade supply infrastructure or provide grid connections.

  2. Well ya. Investing takes time. You don’t just dump helecopter money. That doesn’t do shit. You need people to submit applications and make sure it meets the reqs before the money is issued.

  4. I actually think it’s a feature. The vast majority of the front-loaded spending has been from the private sector. Other than DOE loans, which will be repaid with interest, the overwhelming majority of the subsidies don’t flow until the new factories are built, equipment is purchased and employees are hired. So they go to companies that have already put significant skin in the game and are fully committed. That Trump would now pull the rug out from under them is unconscionable.

    The IRA was also supposed to be a ten year plan. No one anticipated that America’s dumbest would elect a rapist and convicted criminal who wants to pull the plug on one of the most significant jobs and economy bills ever, after only two years. So thankfully Biden is working to get as much of the funding out the door as possible before the rapist takes over.

    And for all the MAGA trolls about to show up to leave their droppings, NO IT’S NOT YOUR TAX DOLLARS PAYING FOR THIS. For the millionth time, the IRA is fully funded by a minimum corporate tax, reduced Medicare prescription drug costs, increased IRS enforcement to go after wealthy tax cheats, a methane tax and other means.

  5. One reason is probably some projects are just in the planning stage and don’t need money yet.

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