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Energy Funding Forecast: What to Know Post-OBBBA

Navigate the federal funding changes to energy and sustainability policies from the 2025 Tax Act.

Federal financial assistance (such as grants, co-operative agreements, loans, and other assistance provided by the federal government) and priorities for energy initiatives have shifted as the current administration implements its legislative priorities.

The previous administration placed a large focus on renewable energy and sustainability efforts through the passage of the Inflation Reduction Act (IRA), which consisted of several federal financial assistance programs for renewable energy and sustainability efforts. The new administration, however, is focusing its efforts on building traditional energy infrastructure and increasing domestic energy production, as evidenced in the Unleashing American Energy Executive Order released on January 20, 2025. In addition to this, the change in priority is reflected in the 2025 Tax Act (referred to as the One Big Beautiful Bill Act (OBBBA)), which rescinds unobligated funds for federal financial assistance programs previously enacted as part of the IRA.

Below is an overview of affected programs and what to know as of this publication date. According to data from the OBBBA, rescinded IRA programs include1

Budget SectionTitleAgencyDescription and Source of Rescinded Funds2
60001Clean Heavy-Duty VehiclesEnvironmental Protection AgencyIRA Section 60101 – Funded grants and rebates to replace heavy-duty vehicles with zero-emission alternatives.
60002Greenhouse Gas Reduction FundEnvironmental Protection AgencyIRA Section 60103 – Provided competitive grants to reduce greenhouse gas (GHG) emissions, especially in low-income and disadvantaged communities.
60003Diesel Emissions ReductionsEnvironmental Protection AgencyIRA Section 60104 – Supported projects to reduce diesel emissions from existing engines, vehicles, and equipment.
60004Address Air PollutionEnvironmental Protection AgencyIRA Section 60105 – Funded air quality monitoring and pollution reduction initiatives.
60005Air Pollution at SchoolsEnvironmental Protection AgencyIRA Section 60106 – Provided grants to monitor and reduce air pollution in and around schools.
60006Low Emissions Electricity ProgramEnvironmental Protection AgencyIRA Section 60107 – Supported clean electricity projects and emissions tracking.
60007Section 211(o) of the Clean Air ActEnvironmental Protection AgencyIRA Section 60108 – Related to the Renewable Fuel Standard program, promoting biofuels.
60008American Innovation and Manufacturing ActEnvironmental Protection AgencyIRA Section 60109 – Funded implementation of HFC phase-down and climate-friendly technologies.
60012Methane Emissions and Waste ReductionEnvironmental Protection AgencyIRA Section 60113 – Incentivized methane capture and emissions reduction in oil and gas systems.
60013Greenhouse Gas Air Pollution PlansEnvironmental Protection AgencyIRA Section 60114 – Funded state planning and implementation of GHG reduction strategies.
60016Environmental and Climate Justice Block GrantsEnvironmental Protection AgencyIRA Section 60201 – Provided block grants to address environmental justice and climate resilience.
50402State-Based Home Energy Efficiency Contractor Training GrantsDepartment of EnergyIRA Section 50123 – Provided funding for state-based home energy efficiency contractor training grants.
50402Funding for Department of Energy Loan Programs OfficeDepartment of EnergyIRA Section 50141 – Provided for loan guarantees under Section 1703 of the Energy Policy Act of 2005.
50402Advanced Technology Vehicle ManufacturingDepartment of EnergyIRA Section 50142 – Provided direct loans to support the expansion of U.S. manufacturing capacity for low- or zero-emission vehicles.
50402Energy Infrastructure Reinvestment FinancingDepartment of EnergyIRA Section 50144 – Provided for projects that reduce air pollution and GHG emissions from existing energy infrastructure.
50402Tribal Energy Loan Guarantee ProgramDepartment of EnergyIRA Section 50145 – Established the Tribal Energy Loan Guarantee Program with funding to support energy projects in tribal communities.
50402Transmission Facility FinancingDepartment of EnergyIRA Section 50151 – Provided funding for a direct loan program for the construction or modification of electric transmission facilities.
50402Grants to Facilitate the Siting of Interstate Electricity Transmission LinesDepartment of EnergyIRA Section 50152 – Funded grants to facilitate the siting of interstate electricity transmission lines.
50402Interregional and Offshore Wind Electricity Transmission Planning, Modeling, and AnalysisDepartment of EnergyIRA Section 50153 – Funded interregional and offshore wind electricity transmission planning, modeling, and analysis.
50402Advanced Industrial Facilities Deployment ProgramDepartment of EnergyIRA Section 50161 – Provided financial assistance to industrial facilities to implement advanced technologies that reduce GHG emissions.

Many of the funding rescissions in the table above apply to unobligated balances. As such, grantees should work with their federal program officers to determine if they will continue to be able to draw funds down during the current budget period. Grantees should also begin strategic planning to move forward without the funds from the rescinded programs.

Current Federal Opportunities

There are currently several Federal Financial Assistance opportunities posted on grants.gov. The table below identifies recently opened opportunities related to energy research and production:

OPPORTUNITY TITLEAGENCY NAMEPOSTED DATECLOSE DATEFUNDING DESCRIPTION
New FY 2025 Energizing Insular Communities Program3Department of the Interior7/2/20258/15/2025The Office of Insular Affairs (OIA) requests proposals for its Energizing Insular Communities (EIC) Program promoting domestically produced energy and protecting U.S. economic and national security interests and military preparedness by ensuring that an abundant supply of reliable energy is readily accessible in every State and territory of the Nation. The EIC program provides grant funding for energy strategies that reduce reliance on imported foreign fuels, reduce the cost of electricity to consumers, and improve the performance of energy infrastructure and overall energy efficiency in the territories.
Energy and Mineral Development Program 20254Bureau of Indian Affairs7/1/20258/13/2025The Secretary of the Interior (“Secretary”), through the Division of Energy and Mineral Development (DEMD), Office of Trust Services, Bureau of Indian Affairs (BIA), is soliciting grant proposals from Federally recognized tribal entities for technical assistance funding to identify, evaluate or assess energy or mineral resources and related projects. The Energy and Mineral Development Program (EMDP) supports Tribal efforts to advance Tribal self-governance through developing energy and mineral resources.
FY25 Bureau of Land Management Forest and Woodlands Resource Management – Bureau Wide5Bureau of Land Management6/23/20257/23/2025Funded projects under this program will focus on high priority work such as activities that promote forest and woodland health, sustainable forest management, fire resiliency, biomass utilization for bioenergy, habitat conservation needs, and insect, disease, and fire recovery on public lands. These activities could include, but are not limited to planting trees, pre-commercial and commercial thinning, salvage/sanitation forest treatments, control of competing vegetation, fuels reduction, riparian or upland restoration, project development and layout, planning analysis and document preparation needed in concert with or to carry out NEPA, Endangered Species Act, or cultural clearances, data collection, and monitoring. Priority activities under this announcement include projects that support Executive Order 14225 Immediate Expansion of American Timber Production.

Next Steps

Further funding opportunities may also exist at the state level, as each state has its own priorities as it relates to clean energy and sustainability funds. Keep an eye on your state agency website to identify those opportunities. In addition, Forvis Mazars will provide a federal energy and sustainability funding update on a quarterly basis to keep you informed.

Whether you are seeking new federal opportunities or navigating changes to clean energy and sustainability funding, our Grants Management Services practice can help organizations set strategic goals for grant writing and grants management.

For more information, please reach out to a professional at Forvis Mazars.

  • 1“H.R.1 One Big Beautiful Bill Act, Section 50402 – Page 206, Sections 60001-60016 – Pages 211-215,” rules.house.gov, July 4, 2025.
  • 2“H.R. 5376 Public Law 117-169, The Inflation Reduction Act of 2022, Sections 60101-60201 – Pages 247-262, Sections 50123-50161 – Pages 225-233,” congress.gov, August 16, 2022.
  • 3“OIA-EIC-2025-1, New FY Energizing Insular Communities Program,” grants.gov, July 7, 2025.
  • 4“BIA-EMDP-2025, Energy and Mineral Development Program 2025,” grants.gov, July 7, 2025.
  • 5“Fy25 Bureau of Land Management Forest and Woodlands Resource Management – Bureau Wide,” grants.gov, July 23, 2025.

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