790,000 Jobs, $160 Billion GDP: Shocking Costs Of Inflation Reduction Act Repeal

Forbes

23-03-2025

Gas Power Plant Behind Fence and Locked Gate, Shutterstock ID#1694681248
In 2022, Hyundai announced it was investing $5.5 billion to build a 'Metaplant' manufacturing electric vehicles and batteries in Bryan County, Georgia. It promised more than 3,500 good-paying jobs first building the massive manufacturing facility, then making electric vehicles that cut consumer bills by providing cheaper transportation choices.
'This is the largest investment in the state of Georgia's history, one that will diversify and expand our economy while providing strong job opportunities for Georgians today and for generations to come,' said Congressman Buddy Carter (GA-1).
When the Metaplant opened in October 2024, months ahead of schedule, it started shipping Hyundai Ioniq 5 EVs, the fourth-best selling EV in America. It also started generating millions in salaries, tax revenue, and economic activity across Southeast Georgia.
This is just one example of how the Inflation Reduction Act's federal clean energy tax credits and government funding programs have supercharged America's economy. Through January 2025 these policies have attracted $600 billion in new private investment across roughly 750 projects and created more than 406,000 new jobs.
But Trump administration proposals to repeal IRA federal policies to pay for tax cuts to benefit the wealthiest Americans – now being considered by Congress, which passed the IRA in 2022 – could halt this economic engine. That's ironic considering 77% of the IRA's clean energy and deployment investment have gone to Congressional districts represented by Republicans, and likely the reason 21 GOP Members of the House of Representatives oppose repealing them.
New Energy Innovation modeling shows that if the IRA is repealed, America's economy and its households, will pay a staggering price. The United States is already facing a potential recession – we simply can't afford to grind the clean energy economic engine to a halt.
If the IRA is repealed by Congress, in 2030 our economy would lose nearly 790,000 jobs and $160 billion in GDP. Between 2025 and 2035, American households would be forced to pay $32 billion in higher cumulative household energy bills. In 2035, we'd lose $190 billion from national GDP.
These economic damages would be a result of companies cancelling announced factories and expected private investment drying up as the federal government signals to corporations that America's clean energy economy is no longer open for business. As fewer clean energy manufacturing facilities are built, construction activity dries up, costing jobs and cutting income across the board.
PASADENA, CA - MAY 14: Job seekers look over job opening fliers at the WorkSource exhibit, a ... More collaborative effort by governmental agencies to offer jobs and job training resources at the Greater Los Angeles Career Expo at the Pasadena Convention Center on May 14, 2009 in Pasadena, California. Nineteen exhibitors offer job and educational opportunities as well as advice from the Board of Equalization at the event that is open to the general public. (Photo by)
This economic slowdown isn't theoretical. Hundreds of billions in private investment and state funds could be wasted on projects that may now be cancelled – more than 42,000 jobs and $57 billion in investment have already been stopped or stalled by Trump administration proposals since January 2025 alone.
And the economic slowdown isn't surprising. Financial services company Moody's analyzed President Trump's campaign policy platform in June 2024 and found that it would increase inflation and weaken economic growth, threatening a recession as soon as mid-2025.
As fewer clean energy technologies like solar panels, EVs, and batteries are deployed, energy costs would rise as consumers are forced to pay volatile power prices from utilities and oil companies whose commodities are traded on a global market.
Average U.S. household electricity prices rose nearly 22% from 2018-2023, and could rise another 7% in 2025, especially if gas prices rise 91% by 2026 as predicted by the U.S. Energy Information Administration.
IRA repeal would throw fuel on that fire. A recent analysis for the right-leaning group ConservAmerica estimates repealing just two of the IRA's tax credits would spike consumer electricity costs $51 billion annually by 2035. John Ketchum, CEO of NextEra, one of the country's largest utilities warned, 'if you take renewables and storage off the table, we're going to force electricity prices to the moon.'
Every state in the country would suffer economically if federal clean energy policies are repealed – they'd face higher consumer costs and job losses, along with lower GDP and less private investment. But five states would be America's biggest losers, and they're not liberal bastions.
Of all 48 states modeled, Texas is America's biggest loser if federal clean energy policies are repealed, followed by California (the world's fifth-biggest economy), Florida, Georgia, and Pennsylvania.
Americans have the right to choose the cheapest energy technologies like solar energy and EVs instead of being forced to stay hooked on expensive and outdated forms of energy.
POMONA, CALIFORNIA - OCTOBER 19: GRID Alternatives employees Sal Miranda (R) and Tony Chang install ... More no-cost solar panels on the rooftop of a low-income household on October 19, 2023 in Pomona, California. GRID Alternatives has installed no-cost solar for over 29,000 low-income households located in underserved communities which are most impacted by pollution, underemployment and climate change. They are the country's biggest nonprofit clean energy technologies installer and operate in California, mid-Atlantic states and Colorado. (Photo by)
Clean energy was a $2 trillion global market in 2024, and abandoning that market means we cede economic opportunity to countries like China while factories once again close their doors and workers lose their jobs.
The policy choices Congress makes today will reverberate across our economy for decades. Repealing policies that create jobs, fight inflation, and increase GDP isn't how we do business in this country. Or, at least, it's not how we should do things.