US President Donald Trump has issued an executive order suspending all funding disbursements under the Inflation Reduction Act (IRA), marking a significant shift in the US energy agenda.

The action, termed “Terminating the Green New Deal,” also halts funding for the Infrastructure Investment and Jobs Act, affecting clean energy and manufacturing projects.

Federal agencies have 90 days to submit their reviews and spending recommendations to the Office of Management and Budget and the National Economic Council.

The pause in funding underscores Trump's commitment to reversing the climate policies of the previous administration.

The new president has also signed an order withdrawing the US from the Paris Agreement.

The funding pauses are part of a broader “Unleashing American Energy” executive order, which targets programmes such as the National Electric Vehicle Infrastructure Formula Programme and the Charging and Fueling Infrastructure Discretionary Grant Programme.

The order aims to reassess the processes for issuing grants, loans and contracts, focusing on promoting “America’s affordable and reliable energy and natural resources.”

Trump’s agenda also includes ending the electric vehicle mandate and revoking Biden’s 2021 order for half of new US vehicles to be electric by 2030.

Trump has been critical of the mandate and the EV tax credits under the IRA, which constitute a significant portion of the act’s spending.

A Biden administration official highlighted that roughly 84%, equating to $96.7bn, of IRA clean energy grants had already been allocated before Trump's return to office.

The Energy Department announced 53 deals in project investments under Biden, totalling $107.57bn.

These included major deals such as a $1.4bn for Qcells’ Georgia solar cell factory and $9.6bn for Ford’s battery factories with SK On.

The White House later clarified that Trump’s IRA pause order mainly affects programmes that discourage fossil fuel development or promote electric vehicles.

Funds for other infrastructure projects, such as bridges and highways, remain unaffected.