10,000 Jobs, $14 Billion in Clean Energy Investments Nixed as Biden’s “Investing in America” Agenda Reversed

The Inflation Reduction Act of 2022 was a great stimulus for new clean energy projects, EV factories, battery factories, etc. It led to massive new investments, reshoring of countless blue collar jobs, and a more vibrant economy for the fast-growing industries of the future.

More broadly, as we reported last November, Biden’s “Investing in America” agenda was linked to $988 billion in private sector investments.

However, Donald Trump does not want the country or the world transitioning from polluting fossil fuels to clean energy and electric vehicles, and policy changes Republicans are moving through Congress put that preference onto paper, with disastrous results.

According to a new analysis from the nonpartisan organization E2, so far this year, businesses have “cancelled or delayed more than $14 billion in investments and 10,000 new jobs in clean energy and clean vehicle factories” due to concerns about policy changes and especially removal of key tax credits. So much for being businesses friendly and supporting manufacturing in the United States.

Just in April, as talk of repealing clean energy policies heated up (not to mention the tariffs), $4.5 billion in investments in EV, wind power, and battery projects were cancelled. E2 notes that this is “in advance of the U.S. House’s passage of a massive tax and spending package that would essentially kill federal clean energy tax credits.”

In other words, the “One Big Beautiful Bill Act” is going to cost us thousands of jobs and billions of dollars of private sector investment in the US.

Ironically, it’s Republican-controlled districts that are being the most hurt by this. “Republican congressional districts, which have benefitted the most from the clean energy tax credits passed in 2022, also are seeing the most cancellations. More than $12 billion and over 13,000 jobs have been cancelled in Republican districts so far.” Yet again, we have a case of Republican politicians doing things that hurt Republican voters — but all the politicians have to do is keep them scared and enraged about things that don’t really harm them and the rest is ignored or forgiven.

“Through April, over 61 percent of all clean energy projects announced—along with 72 percent of all jobs and 82 percent of all investments—are in congressional districts represented by Republicans,” E2 adds.

“Now is not the time to raise taxes on clean energy and compound the business uncertainty that is clearly taking a greater and greater toll on U.S. manufacturing and jobs,” E2 Communications Director Michael Timberlake commented.

“If the tax plan passed by the House last week becomes law, expect to see construction and investments stopping in states across the country as more projects and jobs are cancelled. Businesses are now counting on Congress to come to its senses and stop this costly attack on an industry that is essential to meeting America’s growing energy demand and that’s driving unprecedented economic growth in every part of the country.”

One can dream, but “counting on Congress to come to its senses” doesn’t seem advisable.

The good news is that so many projects were stimulated by the Inflation Reduction Act and other Investing in America policies that some of them will continue on anyway. Also, frankly, these are growing industries and that’s going to continue to be the case for years to come. “While cancellations continue to rise, companies continue to invest in the potential of America’s clean economy,” E2 writes. “Businesses in April announced nearly $500 million in investments for new solar, EV and grid and transmission equipment factories across six states – including a $400 million investment by Corning to expand a solar wafer factory in Michigan that is expected to create at least 400 new jobs and a $9.3 million investment by a Canadian solar equipment manufacturer for a new plant in North Carolina. Combined, the seven projects announced in April are expected to create nearly 3,000 new permanent jobs if completed.”

For tables and tables of data on cleantech projects and cancellations, go here.