The freezing of federal energy and manufacturing funding programs created real economic damage to America’s economy and global competitiveness. Every dollar that was kept on the sidelines was a dollar that was not being used to buy materials and equipment, pay workers, and support local economies more broadly.
The delay in releasing these funds meant that the United States missed opportunities to advance domestic manufacturing, create jobs, and develop the clean energy technologies that would shape the global economy for decades to come. The cost of delay was substantial and increased by the second. In fact, every day of delay translated into $10 million of lost economic output – money that was never recovered.
The logic was simple. Over time, goods and services got more expensive. A dollar spent the following year would not buy as much as a dollar at that time. That meant less economic value overall: less equipment and materials purchased, fewer people employed, and less real economic activity created in the communities where the projects were located. Because the total amounts of the grants were already fixed, the lost economic output from that lower purchasing power was gone forever.
These federal incentives had already catalyzed massive announced investments nationwide, demonstrating their potential to stimulate private sector investment, create high-quality jobs, and revitalize legacy manufacturing communities. The federal funding freeze, however, cast widespread uncertainty over those projects – and threatened to drive disinvestment from promising American energy and manufacturing projects.
C2ES partnered with research firm Greenline Insights to quantify the cumulative and accelerating impact of federal clean energy and manufacturing funding freezes.