An Indiana solar farm

Freeze on federal grants hits close to home

Contributed By: The 411 News

When the City of Indianapolis announced in early February that it would halt the installation of electric vehicle charging stations, it joined a growing number of public and private entities reeling from the Trump administration’s first days in office which ordered freezes on federal grants and loans.

Campaigning in 2024, candidate Donald Trump took aim at President Joe Biden’s Inflation Reduction Act, calling it an example of government overspending, waste, fraud and abuse.

The 2022 IRA legislation established a path for the nation on climate change that included investments in domestic energy production and promoting clean energy. It also implemented policies to reduce the federal government deficit, change IRS tax laws, and lower prescription drug costs.

Indianapolis was following an order from the Federal Highway Administration pausing the Inflation Reduction Act’s National Electric Vehicle Infrastructure (NEVI) program. The $5 billion program offered funding for the installation of electric vehicle charging stations on state highways and corridors.

Indianapolis planned to use its $15 million grant to install charging stations near libraries, parks and culturally relevant sites for Black and brown communities.

Soon after, the Indiana Dept. of Transportation announced a pause on its NEVI-funded $100 million Charging the Crossroads plan to install EV charging stations along Indiana’s interstates and highways.

The pause on federal grants and loans is being felt closer to home.

The IRA authorized the Environmental Protection Agency’s $27 billion Greenhouse Gas Reduction Fund to combat the climate crisis. One of its programs, the Solar for All fund reserved $7 billion to expand the deployment of solar energy in low-income communities.

News came from FAITH CDC that its plan to install a solar farm in Gary was being delayed. And next, a report that the City of Gary’s project to install solar panels on 240 homes along with 2-3 community solar installations with battery storage was also on hold.

On January 11, before the inauguration of President Trump, Pastor Curtis Whittaker of FAITH CDC and Brenda Scott-Henry, Director of the City of Gary’s Office of Sustainability and Environmental Affairs hosted “Family Solar Discovery Day” at the Gary Public Library as a preview of their solar projects.

The two projects had received a combined total of $34 million from the Solar for All fund. The City of Gary and FAITH CDC were sub-recipients of a $117.4 million competitive grant awarded to Indiana communities submitted by the Indiana Community Action Association (IN-CAA). The fund asked states and native tribes to compete to receive the funds, awarding grants to 60 recipients.

Included in IN-CAA’s award were Fort Wayne, Indianapolis, Columbus and 6 statewide organizations.

Alison Becker, the IN-CAA Program Director said EPA was unable to communicate with the grantees after the inauguration. “Since then, funding has seesawed between suspended and available.”

Although communications have resumed, Becker said, “No sub-awards have been made yet until we have additional clarity on the long-term availability of funds.”

Solar for All project funds are scheduled to be disbursed over a 5-year period.

Becker added, “We continue to monitor developments in various court cases as well as with the budget process ongoing in Congress.”

Story Posted:03/03/2025