New Executive Order Pauses Certain Funding Under IRA And IIJA

On his first day in office, President trump signed an executive order titled Unleashing American energy that directs federal agencies to pause disbursements of certain funds under the Inflation Reduction Act (IRA) of 2022 and the Infrastructure investment and Jobs Act (IIJA) of 2021. According to Section 7 of the order, agencies must suspend Inflation Reduction Act grants , loans, and other financial mechanisms, including those supporting electric vehicle infrastructure, until they complete a 90-day review to ensure alignment with the administration's energy policy.

While the executive order's full implications are still developing, affected programs include, but are not limited to:

• National Electric Vehicle Infrastructure (NEVI) Formula Program
• Charging and Fueling Infrastructure Discretionary Grant Program

During the 90-day review period, each agency will assess the consistency of its processes with the new policy and submit recommendations to both the Director of the National Economic Council (NEC) and the Director of the Office of Management and Budget (OMB). Disbursements may resume only if deemed consistent with any adopted recommendations.

At this stage, it remains unclear whether the pause covers all prospective funding, such as direct pay provisions under the IRA, or if it applies solely to grants, loans and contracts administered at the federal level. Pausing funding already appropriated by Congress may prompt legal challenges, though the administration can impose interim review processes. Any resulting delays could affect organizations and projects depending on future allocations under these statutes.

Connect with a Baker Tilly specialist to see how this executive order may affect specific projects or timelines.

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