Inflation Reduction Act: What's in it for Local Governments?

The Inflation Reduction Act (IRA) means more funding programs that your jurisdiction might benefit from! Two programs build on IIJA programs focused on environmental justice. The first is the Neighborhood Access and Equity Program, which includes about $1.9 billion in competitive grants, with priority given to disadvantaged communities for projects that improve connectivity/mobility, reduce urban heat, and improve safety, among other things. The second is the $2.8 billion Environmental and Climate Justice Block Grants, and are available to local governments that are partnered with a community nonprofit to fund community led efforts in pollution monitoring, prevention, and remediation, among other things.

Other funding is available to localities through new programs under the IRA, including:

  • The Alternative Fuel and Low-Emission Aviation Technology program for projects related to sustainable aviation fuel and aviation technologies.
  • The Zero Code which provides funding to assist with adopting new residential and commercial building codes for zero-carbon buildings.
  • Climate Pollution Reduction grants for at least one eligible entity in each state for the costs of developing a plan for the reduction of greenhouse gas air pollution.
  • Greenhouse Gas Reduction Fund to help communities to deploy or benefit from clean energy projects and pollution-reducing technologies.

Further, there are millions of dollars for domestic water supply projects in disadvantaged communities, solar projects that increase water efficiency, billions of dollars for drought mitigation, and billions of dollars for coastal localities for changing climate conditions, including extreme storms.

GFOA's Federal Liaison Center is conducting an analysis of the programs in the IRA, stay tuned for resources to help GFOA members navigate the funding opportunities.