IRA Section 40001 - Investing in Coastal Communities and Climate Resilience

Section 40001 of the IRA appropriates $2.6 billion to the National Oceanic and Atmospheric Administration (“NOAA”) for fiscal year 2022. NOAA is directed to use the funds to provide grants to, enter into contracts or cooperative agreements with, or provide technical assistance to eligible recipients for:

1) the conservation, restoration, and protection of coastal and marine habitats and resources, including fisheries;

2) to enable coastal communities to prepare for extreme storms and other changing climate conditions;

3) for projects that support natural resources that sustain coastal and marine resource dependent communities; and

4) for related administrative expenses.

Eligible recipients are:

1) coastal states, as defined under the Coastal Zone Management Act of 1972, 16 U.S.C. § 1453(4);

2) the District of Columbia;

3) Tribal governments;

4) Nonprofit organizations;

5) local governments; and

6) institutions of higher education, as defined under section 101 of the Higher Education Act of 1965, 20 U.S.C. § 1001(a).

For the purposes of section 40001 of the IRA, a tribal government is defined as the recognized governing body of any Indian or Alaskan Native tribe, band, nation, pueblo, village, community, component band, or component reservation, individually identified in the list published most recently after enactment of the IRA.

Eligible Entities:

State/Territorial Government, Local Government, Native American/Indigenous Community, Non-profit Organization, Educational Institution

Current Status:

Further implementation actions taken, Funds Rescinded by Congress

Section 40008 of the One Big Beautiful Bill Act of 2025 (Public Law 119-21) rescinded unobligated funds under this IRA provision.

Trump Administration Actions:

Implementation Status at End of Biden Administration:

In Progress

NOAA press releases indicate that the agency has awarded the majority of its $2.6 billion appropriations, but could have at least $350 million left to spend. The program has improved public infrastructure, funded technology development, trained workers in coastal frontline communities, and more.

Biden Administration Actions:

Litigation:

In Washington v. Department of Commerce (filed August 8, 2025), Washington state filed a lawsuit against the Department of Commerce and NOAA to challenge the termination of two federal funding awards, one of which was funded by IRA section 40001 for climate resilience projects in Washington. On October 22, the court granted Washington’s motion for a preliminary injunction. On January 20, 2026, the plaintiffs voluntarily dismissed the case.

Program Stakes:

NOAA’s coastal climate resilience funding is critical to ensuring coastal communities – where the health and safety of over 40% of the U.S. population is at stake – can prepare for and adapt to the climate-driven intensification of hurricanes, excessive heat, droughts, and flooding.