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States Are Falling Behind in Using IRA Funding to Advance Climate Action

Summary

Two years after the Inflation Reduction Act (IRA) was signed into law, a report by the Rocky Mountain Institute reveals that states are underutilizing the available federal funding for clean energy investments. Despite the potential for $1 trillion in tax incentives by 2031, only $66 billion has been distributed as of June 2024. States like California and Texas lead in receiving funds but are still far from their full potential. Many states lag significantly, with West Virginia and Louisiana capturing less than 1% of their potential. The report highlights the need for states to better organize and capitalize on these opportunities to meet climate goals.

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