Trump plan to freeze funding stymies Biden-era energy rebates for consumers
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Some states have stopped disbursing funds to consumers via Biden-era rebate programs tied to home energy efficiency, due to a Trump administration freeze on federal funding enacted in January.
The Inflation Reduction Act, passed in 2022, had earmarked $8.8 billion of federal funds for consumers through two home energy rebate programs, to be administered by states, territories and the District of Columbia.
Arizona, Colorado, Georgia and Rhode Island — which are in various phases of rollout — have paused or delayed their fledgling programs, citing Trump administration policy.
The White House on Jan. 27 put a freeze on the disbursement of federal funds that conflict with President Trump’s agenda — including initiatives related to green energy and climate change — as a reason for halting the disbursement of rebate funds to consumers.
That fate of that freeze is still up in the air. A federal judge issued an order Tuesday that continued to block the policy, for example. However, it appears agencies had been withholding funding in some cases in defiance of earlier court rulings, according to ProPublica reporting.
In any event, the freeze — or the threat of it — appears to be impacting state rebate programs.
“Coloradans who would receive the Home Energy Rebate savings are still locked out by the Trump administration in the dead of winter,” Ari Rosenblum, a spokesperson for the Colorado Energy Office, said in an e-mailed statement.
The U.S. Department of Energy and the White House didn’t return a request for comment from CNBC on the funding freeze.
In some states, rebates are ‘currently unavailable’
Consumers are eligible for up to $8,000 of Home Efficiency Rebates and up to $14,000 of Home Electrification and Appliance Rebates, per federal law.
The rebates defray the cost of retrofitting homes and upgrading appliances to be more energy efficient. Such tweaks aim to cut consumers’ utility bills while also reducing planet-warming carbon emissions.
California, the District of Columbia, Maine, Michigan, New Mexico, New York, North Carolina and Wisconsin had also launched phases of their rebate programs in recent months, according to data on an archived federal website.
All states and territories (except for South Dakota) had applied for the federal rebate funding and the U.S. Department of Energy had approved funding for each of them.
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The Arizona Governor’s Office of Resiliency said its Home Energy Rebates programs would be paused until federal funds are freed up.
“Due to the current federal Executive Orders, memorandums from the White House Office of Management and Budget, and communications from the U.S. Department of Energy, funding for all Efficiency Arizona programs is currently unavailable,” it said in an announcement Friday.
Rhode Island paused new applications as of Jan. 27 due to “current uncertainty” with Inflation Reduction Act funding and executive orders, according to its Office of Energy Resources.
The Georgia Environmental Finance Authority launched a pilot program for the rebates in fall 2024. That program is ongoing, a spokesperson confirmed Monday.
However, the timeline for a full program launch initially planned for 2025 “is delayed until we receive more information from the U.S. Department of Energy,” the Georgia spokesperson explained in an e-mail.
However, not all states have pressed the pause button: It appears Maine is still moving forward, for example.
“The program remains open to those who are eligible,” Afton Vigue, a spokesperson for the Maine Governor’s Energy Office, said in an e-mail.
The status of rebates in the eight other states and districts to have launched their programs is unclear. Their respective energy departments or governor’s offices didn’t return requests for comment.
‘Signs of an interest’
While the Trump administration on Jan. 29 rescinded its memo ordering a freeze on federal grants and loans — two days after its initial release — the White House said the freeze nonetheless remained in full force.
Democratic attorneys general in 22 states and the District of Columbia filed a lawsuit against the Trump administration, claiming the freeze is unlawful. The White House has claimed it is necessary to ensure spending aligns with Trump’s presidential agenda.
David Terry, president of the National Association of State Energy Officials, said he is optimistic the rebate funding will be released to states soon.
“For these two particular programs, I do not think [the freeze] will stymie the programs,” Terry said. “I see signs of an interest in moving them forward and working with the states to implement them.”
![Is this the Hyundai Santa Fe EV? Well, sort of [Video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/10/Hyundai-Santa-Fe-EV.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
Hyundai’s midsize SUV is already due for a facelift, including a new design and electrified powertrain. It’s not a pure EV, but the new Hyundai Santa Fe will offer electric-only driving.
Is Hyundai launching the Santa Fe EV?
The Santa Fe is slightly bigger than the Tesla Model Y and one of Hyundai’s most popular vehicles, so an EV version would make sense, right?
Hyundai introduced hybrid and plug-in hybrid powertrains for the 2021 model year. The fifth-generation, launched last year, brought a bold new look, added power, and a new hybrid option.
Now, it’s official, the next Santa Fe will be radically different from the current model. A camouflaged prototype was spotted in South Korea with a few design updates, but that’s not all.
Although it’s still under wraps, a sticker on the side of the vehicle confirms that this Santa Fe is actually an extended-range electric vehicle (EREV). Hyundai announced plans to launch its first EREV in 2027 during last month’s CEO Investor Day.
According to Hyundai, the new electrified vehicle will offer an “EV-like” driving experience, delivering over 600 miles (960 km) of combined range.
The vehicle is still equipped with a battery for pure EV driving, but it also has a gas engine that acts as a generator to extend the driving range when the battery gets low. Hyundai will use in-house batteries, which it claims will offer “full EV power performance with less than half the battery capacity.”
The video from HealerTV takes a closer look at the vehicle to show where the battery and high-voltage lines are located.
Although it’s covered, you can see a few design updates, including new head and rear lights that appear closer to the Palisade.
While Hyundai is preparing to launch the Santa Fe EREV, Genesis is also planning to introduce its first extended-range EV. We caught a sneak peek of the Genesis GV70 EREV earlier this month, which is also expected to arrive in 2027. It will follow the luxury brands’ first hybrid, the GV80, due out next year.
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In the last week, two former Tesla self-driving/Autopilot program leaders have commented on the state of autonomous driving, telling a very different story than their former boss, Elon Musk.
Elon Musk has been notoriously wrong about predicting when Tesla would solve self-driving.
The CEO first announced that “all Tesla vehicles produced since 2016 have all the hardware necessary to achieve full self-driving,” and then claimed, every year from 2019 to 2025, that Tesla would deliver the capability through software updates by the end of each year.
He reiterated the prediction recently, saying Tesla would remove the safety monitor from its robotaxi service in Austin and enable “unsupervised self-driving” in consumer vehicles by the end of 2025.
There’s been a running gag at Tesla about engineers finding out that the company is supposed to deliver something as Musk announces it publicly – leading to a large discrepancy between what Tesla is working on and what Musk claims it will deliver.
Self-driving has been a good example.
While Musk has repeatedly claimed for the last 6 years that Tesla is on the verge of solving autonomy, the people actually working on the technology are not really in agreement. Some of them who left are starting to speak out.
Andrej Karpathy, Tesla’s former head of artificial intelligence, who led the Autopilot and self-driving programs at Tesla from 2017 to 2022, recently warned that autonomous driving is far from a solved problem.
In a new podcast this week, the AI expect again warned that autonomy is not solved:
He said that he would “push pack” on the idea that what we are seeing in the world of autonomy today, with Tesla and Waymo, means it is a solved problem.
Karpathy said:
“[…] I think basically what takes the long amount of time and the way to think about it is that it’s a march of nines and every single nine is a constant amount of work, so every single nine is the same amount of work, so when you get a demo and something works 90% of the time, that’s just the first nine, and then you need the second nine, and third nine, fourth nine, fifth nine, and while I was at Tesla for five years or so, i think we went through maybe three nines or two nines. I don’t know, but like multiple nines of iteration, there’s still more nines to go, and so that’s why these things take so long […]”
Some data support what the engineer is claiming, as the latest FSD Beta software updates that the Tesla team delivered under his leadership did result in a significant reduction in driver intervention, but the progress has been much less evident since:
The first few ‘9s’ deliver a much greater impact, statistically, than the next ones, even though, as Karpathy pointed out, the next ones are just as important and they are just as tricky as the previous 9s.
While he highlights that there’s still a lot of work to be done, Karpathy did say that he belives Tesla’s approach to be more scalable.
He is not the only former Tesla Autopilot program leader to speak out recently.
Sterling Anderson is recognized as the first Autopilot program leader at Tesla in 2015-2016. He now leads global products at GM, which announced this week that it plans to launch level 3 autonomous driving in 2028.
During the event announcing the new autonomous driving timeline at GM, Anderson took a jab at his former employer:
Our customers have driven over 700 million hands-free miles with Super Cruise without a single accident attributed to the technology. I led Autopilot, and you can’t say that for Autopilot. I think this is the long-term play: we build trust with customers by delivering safe products.
He has a point considering Tesla is currently flooded with lawsuits related to accident that involved its Autopilot or ‘Full Self-Driving’ features.
The GM executive favor the more careful approach to autnomous driving.
Electrek’s Take
As I often point out, there’s what Elon says, and there’s what Tesla’s lawyers say.
Elon’s own lawyers say Tesla shareholders shouldn’t listen to him, calling his statements “mere corporate puffery.” That’s an actual quote.
I do believe that Tesla will achieve unsupervised self-driving in consumer vehicles at someone point, but I don’t have any evidence that it is close to happen.
As Karpathy said, there are still several 9s to go through before it can be at 99.9999999%, which is needed for level4-5 autonomy, and each of those 9s represent years of work.
I think there’s a clear discrepenacy between how Elon talks about self-driving at Tesla and what people who are actually building those systems, like Anderson and Karpathy from 2015 to 2022, are experiencing.
Elon has been lucky to find Ashok, Tesla’s current self-driving leader, who seems to be perfectly willing to endorse his consistently wrong FSD predictions.
It’s not really surprising when you know that Ashok is the one who produce the infamous FSD demo of 2016. As Karpathy pointed out, we should be doubtful of AI demos.
Looking the prediction markets, people don’t really believe in what Elon is claiming. On Polymarket, people who have been betting on Tesla’s not delivering unsupervised self-driving this year have made a lot of money:
Elon reitereted the goal this week and the “no” answer still gained ground after his claim that Tesla was on track.
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This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes Rivian’s new ALSO e-bike, FLIT sells a pound of caviar with its new lightweight folding e-bike, Florida wants e-bike riders to get a license, and more.
The Wheel-E podcast returns every two weeks on Electrek’s YouTube channel, Facebook, Linkedin, and Twitter.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends, the video will be archived on YouTube and the audio on all your favorite podcast apps:
We also have a Patreon if you want to help us to avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.
Here are a few of the articles that we will discuss during the Wheel-E podcast today:
Here’s the live stream for today’s episode starting at 11:00 a.m. ET (or the video after 12:00 p.m. ET):
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