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Schumer-Manchin Deal Includes $62 Billion In New Grants

Shortly after GrantExec launched its federal grants dashboard, Senators Chuck Schumer and Joe Manchin reached an agreement on a $433 billion climate, tax, and health care bill dubbed the Inflation Reduction Act of 2022.


Notably, the legislation includes significant investments in energy security and climate change— much of it in the form of federal grants. While the bill's future is uncertain, Senator Schumer and his colleagues plan to remain in Washington through the weekend if necessary to pass the legislation.


What could this mean for grantseekers? We analyzed the 725-page text to find out.

We identified approximately $62 billion in grant opportunities from the proposed $369 billion in new energy and climate investments over the next five years. Grantseekers can expect Funding Opportunity Announcements to be posted within six to nine months after the bill becomes law. Six federal agencies will disseminate the grants:

  • Department of Agriculture

  • Department of Energy

  • Department of Housing and Urban Development

  • Department of the Interior

  • Department of Transportation

  • Environmental Protection Agency

  • National Oceanic and Atmospheric Administration (Department of Commerce)

Nearly 40% of total grant funding ($23 billion) will fund projects that promote environmental justice, including efforts to implement zero-emissions technology in underserved communities. The bill also includes significant funding opportunities for projects relating to industrial technology, sustainable transportation and residential infrastructure, environmental justice, sustainable farming practices, production of electric vehicles, biofuel and low-embodied carbon technology, aviation, forest protection, and more. These grants will be available to for-profit businesses, nonprofits, and government agencies.


The bottom line: If passed, the Inflation Reduction Act of 2022 would direct cabinet secretaries to create hundreds of new grants worth up to $62 billion over the next five years. That said, the bill is yet to be approved by the Senate Parliamentarian. Republican leaders have announced their intent to insert amendments to the legislation, which may alter the bill's final spending numbers. GrantExec will continue to monitor the bill's progress and report on any relevant changes.

 

Here's our full breakdown of the grants of the Inflation Reduction Act:


ENVIRONMENTAL JUSTICE & CLIMATE RESILIENCE: $22,974,000,000


TRANSPORTATION & INFRASTRUCTURE: $3,760,000,000


FORESTRY: $2,755,000,000


AVIATION: $291,000,000


AIR POLLUTION: $16,093,000,000


MORE FROM THE EPA: $268,000,000


The bill also proposes new grant opportunities in:

  • RENEWABLES: $313,817,500 available through 2031 to develop underutilized renewable energy technologies in rural areas.

  • CARBON: $2 billion in reimbursements or incentives for using low-embodied carbon construction materials in projects for the Federal Highway Administration.

  • FARMING: $1,721,632,500 available through 2031 to fund projects under the Farm Security and Rural Investment act. Each grant comes with a 50% cost share requirement.

  • ELECTRIC VEHICLES: $2 billion in grants for the domestic production of efficient hybrid and electric vehicles.

  • INDUSTRIAL TECH: $5.8 billion to implement advanced industrial technology in facilities that produce iron, steel, concrete, glass, pulp, paper, chemicals, and other energy-intensive industrial processes.

  • HOUSING: $4 billion in grants and loans to fund energy and water efficiency, indoor air quality, and the implementation of low-emission technology at eligible properties. Notably, HUD may convert loans provided in this program into grants if the recipient agrees to maintain affordable rates for tenants for an extended period.

  • WATER ACCESS: $550 million in grants, contracts, and financial assistance for water projects in disadvantaged communities to improve access to domestic water supplies.


 

ABOUT GRANTEXEC: Founded in Reston, Virginia, GrantExec helps organizations locate and win grants from all levels of government and the private sector through a combination of advanced crowdsourcing technology and access to expert grant writers. If your organization is interested in capturing a federal grant, please visit grantexec.com or email ryan@grantexec.com.



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