Inflation Reduction Act Opportunities for Nonprofits Working with Communities Disproportionately Impacted by Climate Change

The Inflation Reduction Act (IRA) contains significant funding to address issues of environmental justice and environmental equity. The legislation specifically prioritizes environmentally overburdened communities with the intent to reduce historic sources of pollution and provide affordable and accessible sources of clean energy to these disadvantaged communities.

Environmental and Climate Justice Block Grants

Purpose: To invest in community-led projects in disadvantaged communities and community capacity building centers to address disproportionate environmental and public health harms related to pollution and climate change.

Governing Agency: Environmental Protection Agency (EPA)

Maturity: The funding is available through September 30, 2026 and includes up to three-year grant awards.

Funding: $3 billion   

Eligible Activities:

  • Air pollution:
    • Monitoring/prevention/remediation
    • Investments in no- and low-emission technology/infrastructure
    • Workforce development to help reduce greenhouse gas emissions
  • Mitigating climate and health risks from:
    • Urban heat islands
    • Extreme heat
    • Wood heater emissions
    • Wildfire events
  • Climate resiliency and adaptation
  • Reducing indoor toxics and indoor air pollution

Impacted Nonprofits: Entities eligible for these grants include community based nonprofit organizations, individually, or in partnership with other local governments or higher education institutions. 

This content was written by CLA’s Lori Budnick, Nonprofit Principal.

Interested in learning more about the IRA and how it may impact your nonprofit? Check out the below content to learn more and what is next for nonprofits.

Inflation Reduction Act Signed into Law: Climate, Health Care, and Tax

The Inflation Reduction Act Is Official – What’s Next for Nonprofits?

Inflation Reduction Act and its Impact on Environmental Advocates

Inflation Reduction Act’s Impact on Facility and Transportation Heavy Nonprofit Organizations

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