Latest news with #IIJA
Technical.ly
02-06-2025
- Business
- Technical.ly
Philly, Pennsylvania risk losing Digital Equity Act programs after Trump administration rules them ‘unconstitutional'
The governments of Pennsylvania and its largest city received federal termination notices related to the Digital Equity Act, cutting money to help Pennsylvanians access devices and digital skills. Memos from the US Department of Commerce said at least one program within the Digital Equity Act violated the constitution because it outlines specific 'racial preferences,' even though advocates say that racial minorities are only one type of underserved population that the law seeks to support. The specific initiative the department highlighted was supposed to bring increased access to devices, digital literacy and other skills needed to effectively use the internet. 'The Digital Equity Capacity Program … is unconstitutional and grants issued pursuant to it were created with, and administered using, impermissible and unconstitutional racial preferences,' read the termination letter received and confirmed by Pennsylvania's Department of Community and Economic Development. The Digital Equity Act is one of two digital access initiatives within the Biden administration's Infrastructure Investment and Jobs Act (IIJA). It incorporates three grant programs, including the aforementioned Digital Equity Capacity Program and Digital Equity Competitive Grant. The latter initiative allowed entities to apply for funding directly from the National Telecommunications Information Administration (NTIA), an agency within the Commerce Department. Recommendations for Competitive Grant recipients were announced in January, and the NTIA selected the City of Philadelphia to receive $11.9 million. These funds were going to support an internet subsidy program, laptop kiosks, esports centers and other efforts to make the internet more accessible to Philadelphians. The city never received a formal contract for this grant, though, according to Kate Rivera, executive director of Philly-based digital equity nonprofit the Technology Learning Collaborative (TLC), which partnered with the city on its grant application. In May, the Department of Commerce sent a notice letting grantees know they would not receive the awards. 'All Digital Equity Competitive and Digital Equity Capacity grant awards have been terminated, except for grants to Native Entities, which are pending further legal review,' read the notice received and confirmed by the city's Office of Innovation and Technology. The other funding streams within the Digital Equity Act are the State Digital Equity Planning Grant Program and the Digital Equity Capacity Program. Each state received funds from the Planning Grant Program to create a digital equity plan, then was recommended for additional money from the Capacity Program to put the in motion. Pennsylvania received $1.6 million to create a Statewide Digital Equity plan, which was completed in January 2024. The commonwealth was supposed to get $25 million to implement that plan, for which the state would then issue a request for proposal to subgrant much of those funds to orgs across the state. Pennsylvania was not as far along in the process of distributing this funding as some other states were, said Drew Garner, director of policy engagement at the advocacy organization the Benton Institute for Broadband and Society. Many states were in the process of administering their subgrant programs, but Pennsylvania hadn't even opened up applications yet. This was partially due to delays in approving the Pennsylvania Broadband Development Authority's Digital Skills and Community Capacity Program guidelines in April. Digital Equity Act removal could affect most Pennsylvanians In early May, shortly before these termination notices were sent out, President Donald Trump called the Digital Equity Act 'unconstitutional' and 'racist' in a post on Truth Social. These concerns seem to come from the fact that the Digital Equity Act defines a list of eight 'covered populations,' or groups of people most impacted by the digital divide, Rivera said. The goal of identifying those groups was to make sure the funded projects address the needs of people who need it most, Rivera said. Applicants had to show that they could reach these populations. One of the designated populations is ethnic and racial minorities, which the president appears especially focused on, she said. The other populations include seniors (people over 60), people with disabilities, veterans and residents of rural communities. 79.4% of Pennsylvania's population falls under covered populations, according to the Census Bureau. 'Just one out of the [eight] covered populations really has a reference to race and ethnicity,' she said. 'But it's not a discriminatory requirement where people would be turned away from receiving services if they're not a racial and ethnic minority.' reached out to the NTIA, asking why the Digital Equity Act was deemed unconstitutional, but did not immediately receive a response. Federal decisions hurt digital equity beyond dollars The end of the Digital Equity Act doesn't just impact the programs that were supposed to receive direct funding: It also affects the wider strategy of what was supposed to be a historic investment in digital inclusion, Rivera from TLC said. The Broadband Equity Access and Deployment (BEAD) program is the other digital access initiative administered through the IIJA. Pennsylvania was supposed to receive $1.16 billion to build out broadband infrastructure that would bring internet service to unserved and underserved parts of the state. This funding is now delayed. However, even if BEAD moves forward as planned, the program won't have as much of an impact without the Digital Equity Act, Garner from the Benton Institute said. That funding supported programs to ensure people can actually use the internet to improve their lives. 'It is only through digital adoption, having devices, having skills, that Pennsylvania will really see the economic benefit of BEAD,' Garner said. The Digital Equity Act is a law, so the expectation is that state attorneys general will sue the Trump administration for breaking the law, he said. Pennsylvania's attorney general did not immediately respond to request for comment. In the meantime, organizations can't do much besides continuing to advocate for the program with legislators and preparing as if the money will return, Rivera said. 'Eventually, when the tide turns again, and there is funding again for digital equity work,' Rivera said, 'we will be ready, like we were ready for this funding.'
Yahoo
29-05-2025
- Business
- Yahoo
US green energy firms brace for federal funding cuts
US green fuel company HIF Global has a big vision for Texas's Matagorda County: a $7bn (£5.2bn) commercial scale e-methanol factory to supply the world market. The plant, which it claims would be the largest to date anywhere, would make e-methanol from captured carbon dioxide and green hydrogen produced on site using renewable energy. Its construction would create thousands of jobs and the product would power ships and planes in a far cleaner way. But the company has yet to make its final investment decision. It is waiting to see what the Republican-led Congress does to clean energy tax credits, in particular the one for clean hydrogen production. The fate of the subsidies is part of a sweeping budget bill currently under consideration by the Senate. A version of the legislation passed by the lower house cuts the hydrogen tax credit, amongst others, and scales back more. The clean hydrogen tax credit would help reduce the cost of the American technology going into the facility, and aide in competing with Chinese e-methanol producers, says Lee Beck, HIF Global's senior vice president for global policy and commercial strategy. "The goal is not to be dependent on tax credits over the long run, but to get the project started." Ms Beck can't say yet what the outcome for the Matagorda facility will be if the tax credit is ultimately killed, except that it will make things hard – and the US isn't the only location the company operates in. The Trump administration has been particularly hostile to green energy. Amongst the President's actions since taking office in January include initiating the US's withdrawal from the Paris climate agreement and temporarily suspending renewable energy projects on federal lands (he has a particular disdain for wind power). Trump has also directed agencies to pause Green New Deal funds, which he regularly calls "Green New Scam" funds: grants and loans being made under the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA), enacted under Biden's presidency in 2021 and 2022 respectively. Those grants and loans, together with the clean energy tax credits that are also part of the IRA, have been funnelling billions of new federal and private dollars into developing clean energy. "It is tumultuous time," says Adie Tomer, of the Brookings Institution, a think tank. "We are doing the exact opposite of our developed world peers." Court battles are ongoing over the President's order to pause green funding, which might ultimately end up in the Supreme Court. In the meantime, agencies are conducting their own reviews and making their own decisions. Jessie Stolark, executive director of the Carbon Capture Coalition, which represents companies involved in carbon capture and storage, laments the lack of clarity from the administration. Members, she explains, have won project funding under the IIJA – including, for example, to build direct air capture facilities. But while projects generally have been able to access funds already awarded to earlier phases, it is unclear if they will be able to progress to additional phases where additional funds are supposed to be made available. "It is causing uncertainty, which is really bad for project deployment," says Ms Stolark. "If you endanger the success of these first-of-a-kind projects it just takes the wind out of the sails of the whole [carbon management] industry long term." Meanwhile, the fate of the IRA, which the Congress has the power to amend or repeal along with the IIJA, is being decided, in part, by the budget bill, which aims to permanently extend President Trump's first term tax cuts by making savings elsewhere. What exactly will remain of the Federal green energy agenda when both the House and Senate agree a compromise version remains to be seen. It seems likely the IRA's tax credits, which are generally scheduled to expire at the end of 2032, though some extend beyond that date, will take a heavy hit, even if the IRA dodges the bullet of outright repeal. Also marked for termination include the tax credits for consumers buying EVs and making their homes more efficient. Many others, such as those for producing clean electricity and manufacturing clean energy components like wind turbine parts, solar panels and batteries, would be phased out earlier or made harder and less worthwhile to secure. That many of the projects set to benefit from the tax credits are in Republican areas seems to have had little sway in the House, notes Ashur Nissan of policy advice firm Kaya Partners. But critics say that the Biden green energy initiatives are too expensive. The IRA's energy tax credits are "multiple times" larger than initial estimates, and expose American taxpayers to "potentially unlimited liability" noted a recent report from the libertarian Cato Institute advocating their full repeal. Meanwhile, actual clean energy investment in the US including from both government and private sources (the far larger share) dropped 3.8% in the first quarter of 2025 to $67.3bn, a second quarterly decline, according to new figures released by the Clean Investment Monitor. "Momentum is sagging a bit which is a little concerning," says Hannah Hess of the Rhodium Group research firm, which partners with the Massachusetts Institute of Technology to produce it. She attributes the trend to a mix of high inflation, high interest rates, global supply chain issues and uncertainty in the policy environment created by the new administration. There was also, she observes, a record number of clean energy manufacturing projects cancelled in the first quarter of 2025 – six projects mostly in batteries and representing $6.9bn in investment– though it is difficult to say to what extent the new administration was a driver. More worrying to Ms Hess is the decline since the last quarter in announcements for some types of new projects, which she believes can be "more strongly" attributed to the policy situation, with companies lacking confidence there will be demand for the clean products their projects would produce. Tariffs, which will increase factory construction costs if components need to be imported, are an extra factor that may negatively influence project decisions going forward, notes Anthony DeOrsey of the Cleantech Group research and consulting firm. Investment aside, companies are also making shifts in how they market their products. The homepage of LanzaJet – which produces Sustainable Aviation Fuel (SAF) from ethanol – used to emphasise how scaling SAF could "meet the urgent moment of climate change". It now focusses on its potential to "harness the energy of locally produced feedstocks". SAF has never been about just one thing, notes CEO Jimmy Samartzis. Tailoring messaging to be "relevant to the stakeholders we are engaging with" makes sense. The company is current waiting on a $3m grant it was awarded by the Federal Aviation Authority last August as part of a nearly $300m program designed to help aviation transition to SAF and which was funded under the IRA. "It is approved funding, but it is stuck at this point," says Mr Samartzis. How to avoid a puncture on the Moon The people refusing to use AI The camera tech propelling shows like Adolescence
Epoch Times
23-05-2025
- Automotive
- Epoch Times
Trump Admin's EV Funding Freeze Violated Federal Law, Says Government Watchdog
A government watchdog says President Donald Trump's administration may have violated a little-known federal law through a move to rescind funding for a Biden-era electric vehicle (EV) program. The law in question, known as the Impoundment Control Act of 1974, places limits on the president's power to 'impound,' or unilaterally refuse to disburse, funding appropriated by Congress. As the administration seeks to downsize the federal government through sweeping executive actions, some observers have been expecting a showdown on the issue between Trump, who has raised questions about the law's constitutionality in the past, and the Government Accountability Office (GAO), the watchdog that oversees impoundment law. In a May 22 On Feb. 6, the DOT announced a freeze on new EV infrastructure grants under the Infrastructure Investment and Jobs Act (IIJA) of 2021. That legislation appropriated $5 billion toward constructing new charging stations and other EV infrastructure as part of former President Joe Biden's push to rapidly phase out gas-powered vehicles. All 50 states, as well as Puerto Rico, have sought funding under the law, the GAO reported. Related Stories 5/20/2025 2/3/2025 The GAO said that the move to cancel funding appropriated by Congress is in violation of the 1974 law. According to the GAO, there was a 'mandate to spend' within the IIJA, so 'DOT is not authorized to withhold these funds from expenditure and DOT must continue to carry out the statutory requirements of the program.' The revocation of new EV grants comes as the president has ordered government-wide staff reductions, withheld funds, and shuttered or merged multiple government agencies and departments in an effort to reduce the size and spending of the federal government. These sweeping executive actions have prompted at least 39 investigations by the GAO, Comptroller General Gene Dodaro told a Senate panel in April. Multiple lawsuits from affected agencies and former employees have also been brought to court. However, until now, there had been few major developments on the issue, with most courts that heard cases related to impoundment refusing to grant injunctions. Party lines have already been forming, however. Trump and his allies have made the case for broad presidential impoundment authority, saying it is a means for the president to exercise oversight on taxpayer funding and prevent wasteful spending. Trump promised on the campaign trail to legally challenge the Impoundment Control Act during his second term. 'This disaster of a law is clearly unconstitutional—a blatant violation of the separation of powers,' Trump said in a 2024 campaign Democrats and other critics say the president's use of impoundment transgresses congressional authority. 'From day one, President Trump has unilaterally frozen or contravened critical funding provided in our bipartisan laws,' Sen. Patty Murray (D-Wash.) said during the April hearing in which Dodaro testified. 'That is really not what the Constitution envisioned. Congress has the power of the purse, period. Our presidents cannot pick and choose which parts of a law that they can follow.'
Yahoo
22-05-2025
- Business
- Yahoo
Made in America: Inovair High-Efficiency Blowers Are the First to Meet BABA Requirements
Lenexa, Kansas , May 22, 2025 (GLOBE NEWSWIRE) -- Building on over 30 years of innovation and manufacturing excellence, Inovair has been recognized by EPA as the first and only manufacturer of high-efficiency blower packages that are fully compliant with the Build America, Buy America (BABA) Act. This milestone achievement delivers immediate benefits to municipalities and engineering firms seeking to leverage federal infrastructure funding while minimizing regulatory risk and procurement staff onsite at Wastewater Treatment plant (WWTP)As a vertically-integrated, U.S.-based manufacturer since 1994, Inovair's blower packages are designed, built, and supported in the United States. From fabrication to final assembly, every step meets BABA domestic content guidelines—offering customers a risk-free, Made-in-USA solution backed by responsive, domestic support.'Being first to meet BABA requirements in our industry isn't just an achievement for Inovair—it's a win for our customers and for American manufacturing,' said David Sperber, Vice President of Sales & Marketing at Inovair. 'This positions Inovair customers to more easily secure BABA and IIJA funding while benefiting from the performance and efficiency for which our aeration blower packages are known.' For municipalities planning blower upgrades or new installations, Inovair offers a proven, compliant path forward with unmatched performance, compact design, and the lowest total cost of ownership. Learn more: blower being assembled at Kansas City headquartersAbout Inovair Blowers Inovair, headquartered in Lenexa, Kansas, is a leader in the design and manufacturing of high-efficiency, compact geared centrifugal blower systems for the wastewater, industrial, and aviation markets. With a focus on innovation, energy efficiency, and American-made quality, Inovair is redefining what's possible in blower technology. Press inquiries Inovair Blowers David Sperber (913) 338-7256 14801 W. 114th TerraceLenexa, KS 66215 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
GVA Q1 Earnings Call: Margin Gains and Portfolio Shifts Offset Revenue Miss
Construction and construction materials company Granite Construction (NYSE:GVA) missed Wall Street's revenue expectations in Q1 CY2025 as sales rose 4.1% year on year to $699.5 million. On the other hand, the company's outlook for the full year was close to analysts' estimates with revenue guided to $4.3 billion at the midpoint. Its non-GAAP profit of $0.01 per share was significantly above analysts' consensus estimates. Is now the time to buy GVA? Find out in our full research report (it's free). Revenue: $699.5 million vs analyst estimates of $705.9 million (4.1% year-on-year growth, 0.9% miss) Adjusted EPS: $0.01 vs analyst estimates of -$0.46 (significant beat) Adjusted EBITDA: $28.07 million vs analyst estimates of $12.05 million (4% margin, significant beat) The company reconfirmed its revenue guidance for the full year of $4.3 billion at the midpoint Operating Margin: -5.7%, in line with the same quarter last year Free Cash Flow was -$28.56 million compared to -$3.8 million in the same quarter last year Market Capitalization: $3.76 billion Granite Construction's first quarter results reflected a blend of margin improvement and continued project portfolio transformation, with management attributing the quarter's performance to improved project execution and a focus on higher-quality work. CEO Kyle Larkin noted that adverse weather slowed some activity in March, yet the company achieved higher construction segment margins and grew its backlog (CAP), supported by federal infrastructure funding and strong bidding momentum. Management also highlighted progress in its Materials segment, emphasizing investments in automation and plant upgrades as key contributors to profit gains and operational resilience. Looking forward, management reaffirmed its full-year outlook, underpinned by expectations for a robust public sector pipeline and a healthy mix of upcoming projects. Larkin pointed to ongoing support from the Infrastructure Investment and Jobs Act (IIJA), suggesting that 'opportunities funded by the bill continue to increase because of the timing delay between allocations to states and funding for specific projects.' While management acknowledged uncertainties around tariffs and equipment costs, they expressed confidence in their ability to mitigate these headwinds and sustain growth through a disciplined approach to bidding, risk management, and targeted M&A. Granite Construction's management focused on strategic execution improvements and investments in core capabilities as key drivers of the quarter's performance and margin gains. Construction margin execution: Improved project execution and a higher-quality backlog drove margin expansion in the Construction segment, despite weather-related disruptions in Western markets. Management cited better bidding discipline and a deliberate shift away from long-term, high-risk projects. Materials segment transformation: Significant investments in Materials, including automation and new plant additions, led to higher aggregate prices and improved cash gross profit margins. Management realigned operational leadership and centralized functions to enhance efficiency and profitability. Federal infrastructure funding impact: The company's backlog benefited from public sector demand, particularly from the IIJA. Management expects these funding sources to support project opportunities and backlog growth beyond 2026, due to delays between allocations and project starts. M&A and vertical integration: Granite is prioritizing acquisitions of materials-focused, vertically integrated companies to reinforce its home markets. Management stated the target of completing two to three deals in 2025 remains unchanged, with integration of recent Southeast acquisitions progressing well. Tariff and cost management: While tariffs and equipment cost inflation remain risks, management reported limited direct impact so far. The company is taking proactive measures, such as early capital expenditure approvals and commodity price hedging, to mitigate potential cost increases. Management's outlook for the remainder of the year is anchored by anticipated public infrastructure investment, targeted Materials segment growth, and ongoing margin improvement initiatives. Public infrastructure project pipeline: Continued federal and state infrastructure funding is expected to drive demand for both Construction and Materials segments, with management citing bipartisan support for future legislation beyond current bills. Margin expansion through execution: The company aims to further improve construction margins through disciplined project selection and operational enhancements. Materials segment profit growth is expected from price increases and process automation. M&A as a growth lever: Accretive acquisitions, especially in materials and vertically integrated businesses, are viewed as key to expanding market presence and supporting long-term revenue and margin growth. Brent Thielman (D.A. Davidson): Asked about the active bidding environment and the sustainability of backlog growth; management highlighted strong public sector demand and ongoing success in capturing higher-margin work. Brent Thielman (D.A. Davidson): Inquired about drivers of improved construction margins despite limited segment growth; CEO Larkin attributed gains to project execution and a shift toward less risky projects. Steven Ramsey (Thompson Research Group): Questioned the mix of project types in the backlog and the implications for business risk; management explained the benefits of a healthy mix between short-cycle and multi-year projects. Steven Ramsey (Thompson Research Group): Asked about Materials segment revenue as a percentage of total sales and expectations for future growth; management expects the Materials business to comprise a growing share of overall revenue due to ongoing investment. Jerry Revich (Goldman Sachs): Sought clarity on cash gross profit margin improvement in Materials and peer comparisons; management pointed to geography, product mix, and pricing discipline as key factors, with further margin expansion targeted in 2025. In upcoming quarters, the StockStory team will focus on (1) tracking margin trends in both Construction and Materials segments as project execution and price initiatives take hold, (2) monitoring progress on targeted M&A, particularly any materials-focused acquisitions that could reshape the business mix, and (3) assessing the impact of public infrastructure funding, including the timing and flow of IIJA-related projects. Any changes in tariff exposure or significant weather disruptions will also be key factors influencing Granite Construction's operational and financial trajectory. Granite Construction currently trades at a forward EV-to-EBITDA ratio of 8×. Is the company at an inflection point that warrants a buy or sell? Find out in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. 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