The Biden administration made an historic investment in American infrastructure with the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA). Together, these bills put two trillion dollars into projects such as long-overdue bridge maintenance and cutting-edge clean energy plants. Pennsylvania alone will see more than $20 billion in new federal dollars going to state agencies; local and county governments; and other groups, including nonprofits, school districts, and businesses.
Republicans in congress plan to revoke more than $10 billion in unspent IRA and IIJA funds in Pennsylvania alone, cutting hundreds of good paying government jobs in construction, manufacturing, and transportation across the state.
While funds are still available, Pennsylvania is acting quickly to assure that investments from the IRA and IIJA do not leave low-income and historically disadvantaged communities behind. The Biden administration rolled out funding according to the Justice40 Initiative, which dictates that 40% of certain federal investments are to be spent in underinvested communities. Pennsylvania has appointed an infrastructure investment coordinator, Jessica Shirley, to ensure that the state takes advantage of all the funding that’s available to it. Specific projects include plugging 27,000 abandoned oil and gas wells, improving the reliability and resiliency of rural electric grids, and providing 469 low- and no-emission buses to school districts. These programs merely scratch the surface of the work now underway thanks to IIJA and IRA funding.
Climate-related investments are a major focus of both the IIJA and IRA, with nearly two-thirds of IRA funds going toward clean energy. Funding in the amount of $250.6 billion is available via grants, loans, and tax incentives for clean energy generation and storage. Public agencies, nonprofits, and individuals are all eligible to receive funding.
The IRA also allocates a $186 million increase to Pennsylvania’s Weatherization Assistance program. This funding is available to low-income homeowners to install improvements such as high efficiency appliances, insulation, and roof improvements, which lower monthly energy bills and ensure homes are better prepared for extreme weather. As of January 2025, tax credits for lowering energy costs are currently available with rebates for home electrification and energy efficiency upgrades available early this year.
Consumers of any income level can claim old clean energy and efficiency tax credits for any qualifying purchase. Households can deduct up to 30% of the cost of installing solar panels and insulation, as well as purchasing other items to reduce energy emissions. Developers are eligible for certain credits of up to $5,000 to meet energy efficiency standards, and commercial buildings can receive credits for reductions in energy use.
The climate investments in the IRA and IIJA are not limited to individual households—in fact, the US Department of Agriculture’s Urban and Community Forestry Program awarded $28 million to 11 local and county Pennsylvania governments to expand tree canopies in urban, suburban, and rural communities. Additionally, in 2024 the Department of Transportation awarded four of Pennsylvania’s local governments $163.5 million to reconnect communities without direct access to economic opportunities, schools, and essential services.
Another investment relevant to Pennsylvania is the Abandoned Mine Land program. Abandoned mines pose a particular threat to rural communities, where residents are forced to rely on easily contaminated well water. Pennsylvania alone will receive $3.7 billion over 15 years to remediate problems such as acid mine drainage, potentially explosive natural gas remnants, and drinking water contamination across hundreds of sites.
Each award represents transformative work. For example, one of the awardees from the Environmental Protection Agency’s Community Change Grant Program, Pittsburgh Conservation Corps, “will work in disadvantaged neighborhoods in Pittsburgh and Philadelphia to expand and create critical infrastructure for upcycling and commercializing materials from urban tree waste. The project will offer workforce development and training for area residents to provide career pathways in land stewardship services and wood products.”
Along with transformative work in communities, school districts can expect to benefit from the IIJA’s Clean School Bus Rebate Program. These benefits will synergize with tax credits from the IRA. Schools can claim up to $40,000 for each commercial clean vehicle weighing more than 14,000 pounds and up to $100,000 for each unit of charging infrastructure built in low-income and non-urban areas.
At present, 469 electric school buses have been committed to Pennsylvania schools. The clean commercial tax credit could add $18.76 million to Pennsylvania school district budgets, depending on how the districts claimed the IIJA rebates and purchased the buses.