Inflation Reduction Act Tracker

Sabin Center for Climate Change Law
Environmental Defense Fund

IRA Section 60114 – Greenhouse Gas Pollution Grant Program

Section 60114 of the IRA amends the Clean Air Act to add a new Section 137 on “greenhouse gas air pollution plans and implementation grants.” Section 137 appropriates $250 million to the EPA Administrator to “make a grant to at least one eligible entity in each state” to cover the costs of developing “a plan for the reduction of greenhouse gas air pollution.” Each state plan must include “programs, policies, measures, and projects that will achieve or facilitate a reduction of greenhouse gas air pollution.” The following entities are eligible to receive grants for developing such programs: states, air pollution control agencies, municipalities, Indian tribes, and groups of one or more of those entities. The funds appropriated for such grants will remain available until September 30, 2031.

Section 137 also appropriates a further $4.75 billion to the EPA Administrator to award grants to implement greenhouse gas air pollution reduction plans. States, municipalities, air pollution control agencies, Indian tribes, and groups of one or more of these entities are eligible to apply for grants under Section 137. The appropriated funds will remain available until September 30, 2026.

Eligible Entities:

State/Territorial Government, Local Government, Native American/Indigenous Community

Environmental Justice Considerations:

Grant applications must include information on the impact of the program on disadvantaged communities.

Current Status:

Funds Rescinded by Congress

Section 60013 of the One Big Beautiful Bill Act of 2025 (Public Law 119-21) rescinded unobligated funds under this IRA provision.

Implementation Status at End of Biden Administration:

Complete

Section 60114 of the IRA appropriates $5 billion to EPA – $250 million to “make a grant to at least one eligible entity in each state” to cover the costs of developing “a plan for the reduction of greenhouse gas air pollution,” to be used by September 30, 2031; and $4.75 billion to award grants to implement greenhouse gas air pollution reduction plans that must be used by September 30, 2026.

EPA has awarded the $250 million and $4.6 billion in grants. In March 2024, EPA announced it had awarded $250 million to 45 states plus the District of Columbia, Puerto Rico, and dozens of Metropolitan Statistical Areas that developed climate action plans. In September 2023, EPA announced the availability of $4.6 billion across two implementation grant competitions. In July 2024, EPA announced $4.3 billion in funding for 25 projects in 30 states targeting greenhouse gas emissions across the economy. The proposed projects would reduce greenhouse gas pollution by as much as 971 million metric tons of carbon dioxide equivalent by 2050, roughly the emissions from 5 million average homes’ energy use each year for over 25 years. In September 2024, EPA awarded $300 million to 33 Tribal nations and 1 U.S. territory, which are estimated to cumulatively reduce greenhouse gas pollution by over 7 million metric tons of carbon dioxide by 2050.

Biden Administration Actions: