Note: this text was updated on July 3, 2025 to reflect important developments in the passage of the legislation.
Introduction
The “One Big Beautiful Bill” (OBBB) has now progressed through the House. The bill’s detrimental impact on federal climate and clean energy programs is becoming increasingly clear. The impact in climate will be seen in increased oil and gas production, and the rapid phase out of many important tax credits that were driving decarbonization as well as job creation. To understand the impact on tax credits, see this digest released by my colleague about electric vehicles or this digest released by my colleague about buildings.
The bill will cut any non-obligated funding for multiple climate programs, including many programs we track on the Climate Program Portal. This Spotlight provides an overview of IRA programs that would be rescinded under the OBBB and highlights what’s at stake.
What’s at risk?
On Thursday, the House was poised to pass the One Big Beautiful Bill. See the text of the bill passed here. Given existing analysis on the impact of tax credits, we wanted to look at the impact on grant and loan programs from the bill. Below are the programs we track that will be rescinded if the bill passes as written:
Table 1: Rescinded Programs in the One Big Beautiful Bill
| Law Section | Program Name |
|---|---|
| 21001(a) | Agricultural Conservation Easement Program (ACEP)
Conservation Stewardship Program (CSP) Environmental Quality Incentives Program (EQIP) Regional Conservation Partnership Program (RCPP) |
| 23001(a)(3) | Collaborative Wildfire Risk Reduction Program |
| 23001(a)(4) | Develop and Implement Activities and Tactics for Old Growth |
| 23002 | Competitive Grants for Non-Federal Forest Landowners |
| 23003(a)(2) | Urban and Community Forestry Assistance Program |
| 23005 | Administrative Costs for U.S. Department of Agriculture |
| 30002 | Green and Resilient Retrofit Program |
| 40001 | Investing in Coastal Communities and Climate Resilience |
| 40003 | NOAA Efficient and Effective Reviews |
| 40004 | Research and Forecasting for Weather and Climate |
| 40007 | Alternative Fuel and Low-Emission Aviation Technology |
| 50123 | State-Based Home Energy Efficiency Contractor Training Grants |
| 50141 | Funding for Department of Energy Loan Programs Office |
| 50142 | Advanced Technology Vehicle Manufacturing |
| 50144 | Energy Infrastructure Reinvestment Financing |
| 50145 | Tribal Energy Loan Guarantee Program |
| 50151 | Transmission Facility Financing |
| 50152 | Grants to Facilitate the Siting of Interstate Electricity Transmission Lines |
| 50153 | Interregional and Offshore Wind Electricity Transmission Planning, Modeling, and Analysis |
| 50161 | Advanced Industrial Facilities Deployment Program |
| 50221 | National Parks and Public Lands Conservation and Resilience |
| 50222 | National Parks and Public Lands Conservation and Restoration |
| 50223 | National Parks Service Employees |
| 60101 | Clean Heavy-Duty Vehicles |
| 60103 | Greenhouse Reduction Fund (repealed) |
| 60104 | Diesel Emissions Reductions |
| 60105 | Funding to Address Air Pollution |
| 60106 | Funding to Address Air Pollution at Schools |
| 60107 | Low Emissions Electricity Program |
| 60108 | Funding for Section 211(o) of the Clean Air Act |
| 60109 | Implementation of the American Innovation and Manufacturing Act |
| 60110 | Enforcement Technology and Public Information |
| 60111 | Greenhouse Gas Corporate Reporting |
| 60112 | Environmental Product Declaration Assistance |
| 60113 | Methane Emissions Reduction Program |
| 60114 | Climate Pollution Reduction Grants |
| 60115 | Environmental Protection Agency Efficient, Accurate, and Timely Reviews |
| 60116 | Low Embodied Carbon Labeling for Construction Materials |
| 60201 | Environmental and Climate Justice Block Grants |
| 60401 | Environmental and Climate Data Improvement |
| 60402 | Neighborhood Access and Equity Grant Program |
| 60502 | Assistance for Federal Buildings |
| 60503 | Low-Carbon Materials for Federal Buildings |
| 60504 | GSA Emerging and Sustainable Technologies |
| 60505 | Environmental Review Implementation Funds |
| 60506 | Low-Carbon Transportation Materials Grants |
Note: This does not consider tax credits. “Law Section” refers to section of the Inflation Reduction Act (IRA).
The bill would rescind “unobligated balances of amounts made available” for certain programs. To understand what that could mean, we reviewed a number of programs and, where available, included their obligated and outlayed funding. These totals should be considered estimates given delays in reporting and for some programs there are multiple funding sources.
Obligated funding refers to a binding agreement to spend funds, while outlayed funding refers to the actual disbursement of funds, according to USASpending. We will continue tracking the status of these programs on the Outcomes Dashboard.
Table 2: Funding Status of a Selection of Rescinded Programs
| Law Section | Program Name | Appropriated Funding | Obligated Funding |
Outlayed Funding |
|---|---|---|---|---|
| 60101 | Clean Heavy-Duty Vehicles | $1 billion | $631 million | $5 million |
| 60103 | Greenhouse Gas Reduction Fund | $27 billion | $26.97 billion | $20 billion |
| 60104 | Diesel Emissions Reduction Act | $60 million | $198 million | $27 million |
| 60201 | Environmental and Climate Justice Block Grants | $3 billion | $2.3 billion | $77 million |
| 60114 | Climate Pollution Reduction Grants | $5 billion | $5 billion | $95 million |
| 30002 | Green and Resilient Retrofit Program | $940 million | $565 million | $646 million |
For Fiscal Year 2022 onwards. Note there may be some reporting delay between funding being obligated and outlayed and it appearing in the USASpending database. Data updated July 1, 2025. Only includes a selection of the programs. In the case of the Diesel Emissions Reduction Act and likely other programs, funding includes non-IRA appropriated funding.
Source: USASpending and Climate Program Portal Opportunities Dashboard
What’s Next?
We are closely tracking and analyzing the bill. In the meantime, here are a few resources to help you understand what’s in the bill and where things currently stand.
- Helpful analysis in Heatmap news here.
- What does the “Big, Beautiful Bill” mean for domestic clean energy manufacturing? Using data from the Clean Economy Tracker, the State Fact Sheets provide a glimpse at how some American communities are being transformed by clean investments – and what’s at risk from changes to federal programs and tax policy.
We will continue to track what this means for climate programs.
