OMB Clarifies Scope of the Order to Halt IRA Spending

On January 21, 2025, OMB released a memorandum to department and agency heads to clarify the scope of President Trump’s Executive Order, “Unleashing American Energy,” issued the previous day. In the order, President Trump directed all agencies to immediately stop disbursing Inflation Reduction Act funds. In OMB’s memorandum, the Office explained that Trump’s directive was limited to “funds supporting programs, projects, or activities that may be implicated by the policy established in Section 2 of the order.” Section 2 of the Executive Order signals the administration’s policy to encourage the development of reliable energy resources while grounding regulatory requirements in law; promote the production and processing of non-fuel rare earth minerals; and eliminate the “electric vehicle (EV) mandate.”