DOE Memo Suspends Funding for Projects Involving Community Benefit Plans

On January 27, 2025, the acting head of contracting activity of DOE’s Office of Energy Efficiency and Renewable Energy issued a memorandum to grant recipients, ordering a freeze on funding projects associated with diversity, equity, and inclusion (DEI) programs or community benefit plans (CBP). It states, “[r]ecipients and subrecipients must cease any activities, including contracted activities, and stop incurring costs associated with DEI and CBP activities effective as of the date of this letter for all DOE grants, cooperative agreements, loans, loan guarantees, cost sharing agreements, or other DOE funding of any kind.” The memorandum applies to all DOE funding agreements, including loans and awards, but is expected to significantly affect IRA-funded grant programs because many of the grant recipients were required by the Biden administration to enter into community benefit plans. The memo indicates that “additional guidance will be forthcoming” and that DOE grant personnel will be in contact with affected grant recipients “to initiate award modifications consistent with this Order.”