California halts energy rebate program amid Trump freeze

By Benjamin Storrow | 03/04/2025 06:23 AM EST

The move marks growing concern among states over being frozen out of federal funding for energy efficiency programs.

President Donald Trump talks with California Gov. Gavin Newsom last month.

President Donald Trump talks with California Gov. Gavin Newsom at Los Angeles International Airport last month. Mark Schiefelbein/AP

California paused a $290 million home energy rebate program on Monday, citing the uncertainty created by President Donald Trump’s decision to freeze funding for climate-related programs.

The California Energy Commission said it will stop accepting applications for the program, which uses federal money to help homeowners replace broken or inefficient heating or cooling systems with more efficient heat pumps. The commission said it would continue to honor rebates for homeowners whose applications had already been approved.

The program will be paused “until the Trump Administration provides additional information on the funding for this program,” the commission said in a statement.

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The decision highlights the difficulty states have had accessing previously approved federal money, despite a series of federal court rulings directing the Trump administration to restore the funding. California’s move comes on the heels of Arizona’s decision to pause a similar program last week. Rhode Island paused new applications in January. All three are funded by a $4.3 billion program created by the Inflation Reduction Act aimed at helping homeowners purchase energy efficient electrical appliances such as heat pumps, water heaters and electric cook tops.

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