President-elect Donald Trump plans to reallocate billions in unspent Inflation Reduction Act (IRA) funds toward infrastructure projects, aiming to undo Biden administration climate policies. Transition team spokeswoman Karoline Leavitt confirmed that Trump will rescind unspent IRA funds, calling the legislation a “Green New Scam.”
The Biden administration has rushed to allocate IRA funds, but at least $3.5 billion, including $1.5 billion earmarked for “environmental justice” grants, is projected to remain unspent. Trump’s proposal to redirect these funds could face legal challenges, including restrictions under the 2022 Consolidated Appropriations Act and the Impoundment Control Act (ICA), which require appropriated funds to be spent as directed by Congress.
Trump has pledged to challenge the ICA in court if necessary, arguing that restoring presidential impoundment authority will reduce excessive spending and combat inflation. Critics, including Democratic lawmakers, claim the move undermines congressional power and jeopardizes essential programs. Legal resistance is anticipated as Trump prepares to prioritize infrastructure spending.
