Protecting Renewable Energy Savings: How the IRA is Lowering Latine Household Costs

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Latine communities are on the frontlines of the climate crisis. From rising energy costs to extreme heat and dangerous air pollution, nuestra comunidad faces some of the worst environmental injustices in the country. As outlined in the Latino Climate Justice Framework (LCJF), Latine households pay 24% more in median energy costs than white households, are 21% more likely to live in urban heat islands, and one in four Latines live in outies that experience federal disaster declarations for flooding in 2023. 

At the same time, Latine workers are bearing the brunt of climate-driven job risks. More than 83% of U.S farmworkers are Latine, making them highly vulnerable to heat-related illnesses, while Latino construction and manufacturing workers are 43% more likely to lose work hours due to extreme weather. These disparities are not accidents; they result from decades of environmental injustice, underinvestment and systemic barriers. 

That’s why the Inflation Reduction Act (IRA) has been critical for supporting our communities. The IRA represents the single-greatest historic investment in clean energy, economic opportunity, and climate resilience of our time, directly benefiting frontline communities. Through the IRA tax credits and rebate programs, households can access lower utility bills, home energy efficiency upgrades, and good-paying clean energy jobs.

That’s why the Inflation Reduction Act (IRA) has been critical for supporting our communities. The IRA represents the single-greatest historic investment in clean energy, economic opportunity, and climate resilience of our time, directly benefiting frontline communities. Through the IRA tax credits and rebate programs, households can access lower utility bills, home energy efficiency upgrades, and good-paying clean energy jobs.

But now, these gains are under threat. The Trump administration and its supporters are actively working to roll back the IRA’s critical programs, jeopardizing jobs, health protections and economic progress for our communities. If they succeed, energy costs will only worsen, pollution in our neighborhoods will rise, and opportunities for workers in the clean energy sector will be lost. 

We cannot allow this to happen. GreenLatinos is committed to defending the IRA and ensuring that these investments continue to uplift Latine families, protect public health and create a sustainable future for future generations.

IRA’s Benefits Across the U.S

The IRA’s impact extends beyond any single demographic, benefiting states across the political spectrum—both Republican and Democratic-led states have experienced economic growth, job creation, and infrastructure improvements thanks to its investments. 

Economic Growth and Job Creation: The IRA has led to a nationwide surge in clean energy investments. States like Texas and Georgia have seen an increase in renewable energy projects, including large-scale solar and wind farms. Texas, the nation's leader in wind energy, has accelerated its clean energy growth, creating thousands of new jobs. Meanwhile, states like California and New York have expanded their clean energy infrastructure and battery storage capabilities, ensuring a more resilient energy grid. 

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Rural and Urban Benefits: The IRA is fueling clean energy investments, transforming both urban and rural communities. In rural areas, towns like Elizabethtown, KY, and  San Miguel, TX, are seeing billions in investments in EV battery factories and solar energy, revitalizing local economies and providing thousands of new jobs. Meanwhile, major cities like New York City, and Los Angeles are leveraging IRA funding for job training programs in the green economy, climate resilience projects, and expanding clean energy in Latine neighborhoods. 

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Lower Energy Costs: States across the country have experienced reduced energy costs due to IRA programs. Families in states like Florida, Arizona, and North Carolina have accessed tax credits for rooftop solar installations and energy-efficient appliances, leading to insignificant utility bill savings. These programs are especially critical in extreme weather regions, providing cost relief and increasing energy resilience. 

How the IRA Is Helping Latine Communities

As mentioned at the beginning, Latine communities face disproportionate environmental burdens, from higher exposure to air pollution to greater vulnerability to climate disasters. But these inequities don’t stop at the environment—Latines also experience significant financial hardships, with Latine households holding only one-fifth of the wealth of white households on average—higher energy costs further strain families making relief from the IRA programs essential.

The IRA is bringing clean energy investments, pollution reduction and tax incentives directly to Latine communities. The EPA’s $2 billion Climate Justice Grant Program funds local projects to cut pollution and strengthen climate resilience, many benefiting Latine neighborhoods. In Texas, a heavily Latino state, a 1.4 billion project we mentioned before is converting a coal plant into a solar and battery facility, cutting 1.8 million tons of emissions annually. Energy efficient tax incentives are helping Latinos upgrade their homes, potentially saving families up to $14,000 on energy costs. Additionally, we have seen a boom in the clean energy job sector, with 43 projects in 2023 alone, generating $28.5 billion in investments and 35,000+ new jobs. With Latines making up nearly a third of the U.S. clean energy workforce in 2023, these investments ensure that our communities are benefiting and helping lead the transition to a clean energy future 

Acknowledging the IRA’s Shortcomings: While the IRA has delivered critical benefits, some challenges remain in ensuring its programs are fully accessible. Limited outreach and lack of culturally relevant resources have made it harder for frontline communities to benefit, and its reliance on tax incentives disproportionately favors single-family homeowners over renters, who make up nearly 52% of Latine households. GreenLatinos continues to advocate for stronger implementation and increased language access to bridge these gaps. These challenges present key opportunities for improvement. Now is the time to strengthen the IRA and its implementation, not weaken it or roll it back.

The Threat of Rollbacks

Despite its successes, the IRA is now under attack. Lawmakers are attempting to dismantle the very programs that have driven economic and environmental progress. Proposals to roll back tax credits and clean energy investments threaten to reverse the gains we’ve made, disproportionately harming Latino families and communities. A report from Politico highlights that Republican leadership is facing a critical decision on whether to repeal, scale back, or preserve the IRA, as growing support within GOP districts clashes with the party's opposition, putting jobs, investments, and economic growth at stake. 

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Take Action: Share Your Story

Your voice is powerful and we are looking for IRA stories to share with your congressional members. If you or your community has benefited from IRA incentives—whether through lower energy bills, a new clean energy job, or improved air quality—your story can help protect these programs by sharing them with decision makers that have the power to save and strengthen the IRA. Join us in advocating for a just and sustainable future and for preserving the IRA by sharing your experience today. SUBMIT YOUR STORY HERE.