In his first significant move on energy policy, President Donald Trump ordered federal agencies to immediately pause disbursement of funds allocated through the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA), halting several clean energy projects and initiatives that had garnered bipartisan support under his predecessor, Joe Biden.

The IRA, passed in 2022, is one of the most extensive pieces of legislation in recent U.S. history, designed to promote a cleaner energy economy through various subsidies and tax incentives. A key focus of the law was funding to promote green and blue hydrogen. This included $7 billion for the creation of seven clean hydrogen hubs, with each project exploring different types of hydrogen production, including green hydrogen (from renewable electricity), blue hydrogen (from natural gas with carbon capture), and pink hydrogen (produced using nuclear energy). Some of the hydrogen produced was expected to feed into the shipping industry, where hydrogen is a critical feedstock for producing clean ammonia and methanol.

However, Trump’s new executive orders significantly delay the continuation of these initiatives. Under the order titled Unleashing American Energy, Trump instructed agencies to pause the disbursement of IRA and IIJA funds. This raises questions about the future of hydrogen-related projects and whether Trump’s administration will prioritize fossil fuels over the push for low-carbon energy alternatives.

The halt on funding impacts a series of major clean hydrogen hubs that were already in development. The Mid-Atlantic Clean Hydrogen Hub, one of the first to receive its tranche of funding, had been awarded $18.8 million of the $750 million total allocated to the project. However, much more remains in the pipeline, with several hydrogen hubs still awaiting approval for further funding disbursements.

Trump’s executive order gives federal agencies 90 days to review the funding allocations and assess whether they align with the new administration’s energy policies. This review could have far-reaching consequences for the future of hydrogen energy and other clean fuel technologies, especially given Trump’s stated aim of unleashing American energy potential through increased reliance on domestic fossil fuel resources.

Though the green hydrogen tax credits remain secure for now, the uncertainty surrounding Trump’s executive orders has sent ripples through the industry. With the long-term future of the IRA and other clean energy incentives hanging in the balance, stakeholders are left wondering whether the momentum toward clean fuels will be stifled or if the projects can move forward under the new administration’s framework.