Arizona pauses energy rebate program after DOE funding pause

By Benjamin Storrow | 02/28/2025 01:51 PM EST

“The Trump administration’s refusal to release these funds puts this program in limbo, leaving homeowners and contractors in a prolonged state of uncertainty,” said Arizona Gov. Katie Hobbs (D).

Arizona Gov. Katie Hobbs applauds.

Arizona Democratic Gov. Katie Hobbs has paused a home energy rebate program, blaming a Trump-initiated funding gap. Ross D. Franklin/AP

Arizona is pausing a $153 million home energy rebate program after being unable to access federal money appropriated as part of the Inflation Reduction Act.

The pause was announced in a statement by Gov. Katie Hobbs (D) on Friday. The governor blamed President Donald Trump for the decision, saying Arizona officials had been unable to access money provided in a federal grant administered by the Energy Department.

Trump froze IRA-related funding in a Day One executive order but was ordered to restore previously approved funds by a federal judge in Rhode Island.

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“Arizona has already been awarded this money, and the people of Arizona are relying on it. The Trump administration’s refusal to release these funds puts this program in limbo, leaving homeowners and contractors in a prolonged state of uncertainty,” Hobbs said in a statement. “This program is crucial to lowering energy costs for over 20,000 Arizonans and supporting Arizona’s energy infrastructure and future. I am committed to protecting Arizonans and ensuring the federal government is not holding their federal tax dollars hostage.”

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