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Red States Disproportionately Reap Benefits of Democrat-led Green LegislationRed States Disproportionately Reap Benefits of Democrat-led Green Legislation

Nearly 60% of announced clean energy and electric vehicle projects, part of the Biden administration’s Inflation Reduction Act, are in Republican congressional districts, representing 85% of investments and 68% of jobs.

Stephen Moore

November 25, 2024

2 Min Read
inflation reduction act graphic
About $268 billion in announced investments enabled by the Inflation Reduction Act has gone to Republican-held districts, compared with about $77 billion going to Democratic districts.designer491/iStock via Getty Images

The recent $1.35 billion investment in battery separator film manufacturing in Virginia highlights a notable trend in the positive effects of the Democrat-driven, awkwardly-named Inflation Reduction Act (IRA). Red states represented by senators who unanimously opposed the legislation have disproportionately reaped its benefits in terms of investment attracted and employment created.

For example, approximately two-thirds of the green-energy projects initiated since the IRA's enactment are located in Republican-held congressional districts. This has led some GOP lawmakers to publicly support these initiatives at the local level, while still advocating for repeal of the IRA itself.

Isn’t it ironic?

Take outgoing Virginia 5th District Republican Congressman Bob Good, who voted against the IRA but nevertheless was present at the groundbreaking ceremony for the mega Microporous project in his state. “Their choice to locate a battery separator manufacturing facility here reflects the strength of our regional commitment to economic growth, and the employees, their families, and the surrounding communities will all benefit,” he noted without a hint of irony.

As a member of the Freedom Caucus, Good, whose term will officially end in January 2025, had been vocal about his opposition to the IRA, according to Politico and other sources, labeling it a significant expansion of government spending that he believed would be “detrimental to economic growth.” He had called for the complete repeal of the IRA, aligning himself with other conservative members of Congress who share similar views on climate spending and government intervention in the economy.

Related:What a Trump Win Means for the Plastics Industry

Red states going green with IRA benefits

While President-elect Donald Trump campaigned on a fossil fuel–friendly “Drill baby  drill!” policy and has publicly voiced his disdain for green technologies ranging from electric vehicles (EVs) to wind turbines, multiple reports highlight that regions ruled by his party are benefiting the most from IRA-driven investment.

  • Nearly 60% of announced clean energy and electric vehicle projects are in Republican congressional districts, representing 85% of investments and 68% of jobs.

  • About $268 billion in announced investments has gone to Republican-held districts, compared with about $77 billion going to Democratic districts.

  • Of the top 20 congressional districts reaping clean energy investments, 19 are held by Republicans.

  • The Southeast region, which includes many Republican-led states, has seen more than 110 major clean energy and clean vehicle projects announced, with 55 in South Carolina and Georgia alone. North Carolina and Tennessee also have been major beneficiaries.

  • Red states are benefiting most due to factors like having more available land, laxer labor laws, and attractive state tax incentives.

Will GOP bite the hand that feeds?

When Republicans gain full control of the House and Senate in January this coming January, the hope is that very little of the IRA in its current form will be immediately repealed, irrationally rebuffed, or subjected to illogical reactions. Any  impending review should be science-based, recognizing that anthropogenic climate change is real, and conducted in a bipartisan manner. If this can be achieved, plastics will continue to play a key role in the green transition.

About the Author

Stephen Moore

Stephen has been with PlasticsToday and its preceding publications Modern Plastics and Injection Molding since 1992, throughout this time based in the Asia Pacific region, including stints in Japan, Australia, and his current location Singapore. His current beat focuses on automotive. Stephen is an avid folding bicycle rider, often taking his bike on overseas business trips, and a proud dachshund owner.

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