Inequality persists as clean energy funds disproportionately benefit poorer areas
A new analysis by the Treasury Department reveals that President Joe Biden's Inflation Reduction Act is directing a significant portion of clean energy funding to low-income, less-educated, and fossil fuel-dependent communities. Approximately 81% of investments in clean projects since the law's passage have been in counties with below-average wages, and 86% are flowing into counties with below-average college graduation rates. Moreover, around 70% of clean energy investments have been made in counties with weaker labor markets. The study also found that energy communities with historical ties to fossil fuel industries have experienced rapid growth in clean energy investments. Treasury Secretary Janet Yellen stated that the funding is going where it is most needed across the country, not just to wealthy communities or coastal areas.