The Inflation Reduction Act (IRA) has been a game-changer for the US economy, attracting $600 billion in new private investment and creating over 406,000 new jobs since its passage in 2022. However, if Congress repeals the IRA’s federal clean energy tax credits and government funding programs, it would have devastating consequences.
A recent analysis by New Energy Innovation modeling shows that the repeal of the IRA could lead to nearly 790,000 job losses and $160 billion in GDP decline by 2030. American households would also be forced to pay an additional $32 billion in cumulative household energy bills between 2025 and 2035, peaking at $190 billion in national GDP loss.
The economic damages would not only affect companies but also thousands of jobs and construction activity across the board. Private investment and state funds could be wasted on cancelled projects, resulting in hundreds of billions of dollars lost since January 2025 alone.
Moreover, financial services company Moody’s analysis of President Trump’s campaign policy platform suggests that repealing the IRA would increase inflation and weaken economic growth, potentially leading to a recession as early as mid-2025.
If Congress repeals the IRA, every state in the country would suffer economically, with five states facing staggering losses. Texas, California, Florida, Georgia, and Pennsylvania would be among the hardest hit, with Texan homeowners paying $8.1 billion in higher energy bills from 2025-2035.
Repealing the IRA would not only harm businesses but also deny Americans the right to choose affordable clean energy technologies like solar panels and EVs. The policy choices Congress makes today will reverberate across the economy for decades, and repealing policies that create jobs, fight inflation, and increase GDP is not an option.
Source: https://www.forbes.com/sites/energyinnovation/2025/03/23/790000-jobs-160-billion-gdp-the-steep-cost-of-inflation-reduction-act-repeal