Section 50161 of the IRA appropriates $5.8 billion to DOE to provide financial assistance to eligible entities to carry out projects for the purchase, installation, or retrofit of certain “advanced industrial technology” at U.S. industrial and manufacturing facilities engaged in energy-intensive industrial processes, such as steel, aluminum, chemical, paper, cement, and concrete production. For the purposes of section 50161 of the IRA, “advanced industrial technology” is defined as a technology that is used in an industrial process and “designed to accelerate greenhouse gas emission reduction progress to net zero” at an industrial or manufacturing facility.
In providing grants under section 50161 of the IRA, DOE must prioritize projects based on, among other things, “the expected greenhouse gas emissions reductions to be achieved by carrying out the project” and “the extent to which the project would provide the greatest benefit for the greatest number of people within the area in which the” industrial or manufacturing facility is located.
The funds appropriated by section 50161 will remain available until September 30, 2026.
Eligible Entities:
Current Status:
Section 50402 of the One Big Beautiful Bill Act of 2025 (Public Law 119-21) rescinded unobligated funds under this IRA provision.
Trump Administration Actions:
- DOE Restructures, Revises, and Eliminates Loans and Conditional Commitments through Office of Energy Dominance Financing [01/22/2026]
- DOE Announces Termination of 223 Projects [10/02/2025]
- Congress Passes Budget Bill, Rescinding Funds and Repealing IRA Programs and Tax Credits [07/03/2025]
- DOE Secretary Orders Review of 179 Financial Assistance Awards [05/15/2025]
- House Committee on Energy and Commerce Proposes IRA Rollbacks to DOE Programs [05/13/2025]
- Litigation Compliance Report Indicates DOE Released Previously Frozen Awards [04/23/2025]
- DOE Creating List of Clean Energy Grants to Cancel [03/21/2025]
- OMB Orders Temporary Pause on Financial Assistance Programs, Later Rescinded [01/27/2025]
- DOE Memo Suspends Funding for Projects Involving Community Benefit Plans [01/27/2025]
- OMB Clarifies Scope of the Order to Halt IRA Spending [01/21/2025]
- Trump Issues Executive Order to Halt All IRA Funding Disbursements [01/20/2025]
Implementation Status at End of Biden Administration:
IRA appropriated $5.8 billion to DOE for awards and loans to be used by September 30, 2026. DOE combined these funds with $6 billion in private funds and $430 million from the BIL. DOE awarded a total of $6 billion to 33 projects. It is unclear what percentage of the awards is from this IRA provision, and how much of the IRA funding was not awarded to the 33 projects. According to DOE, the funded projects will reduce 14 million metric tons of emissions annually and create tens of thousands of jobs.
Biden Administration Actions:
- DOE Announces Commitment of 94% of IRA Grant Funds to States and Projects [01/17/2025]
- DOE Announces $18.6 Million to Three National Lab-led Projects to Accelerate Industrial Decarbonization [01/10/2025]
- White House Releases IRA Guidebook for Tribes [04/04/2023]
- DOE Announces $6 Billion in Funding for the Industrial Demonstrations Program [03/08/2023]
- DOE’s Office of Clean Energy Demonstrations Releases Notice of Intent on Industrial Demonstrations Program Funding [12/12/2022]
Litigation:
In City of Saint Paul v. Wright (filed November 10, 2025), the City of Saint Paul and other organizations sued to challenge DOE’s termination of 321 financial awards. Some terminated awards were made with funding from IRA section 50161 through the Office of Clean Energy Demonstrations. On November 14, the plaintiffs filed a motion for a preliminary injunction. Oral argument was held on December 11. On December 23, the parties stipulated to consolidate the oral argument that was held on the preliminary injunction with trial on the merits. On January 12, 2026, the court entered a judgment for the plaintiffs on the merits, finding the termination decisions violated the Fifth Amendment and vacating the terminations made by DOE for seven grants totaling $27.6M.