US $4.5B rebate at risk

A $4.5 billion federal rebate program for home electrification is at risk after the House voted to repeal it on February 25, 2026. (congress.gov, aceee.org) The program is the High-Efficiency Electric Home Rebate Program, often called Home Electrification and Appliance Rebates, or HEAR. Congress created it in the Inflation Reduction Act of 2022 with $4.275 billion for states and $225 million for Tribes. (congress.gov) HEAR helps low- and moderate-income households pay upfront costs for projects such as heat pumps, heat pump water heaters, insulation, air sealing, electrical upgrades, and efficient electric stoves and dryers. The Department of Energy says some rebates can reach $840 for a stove or dryer, while whole-home efficiency rebates can reach $8,000 under the separate HOMES program. (congress.gov, energy.gov) The immediate threat is House bill H.R. 4758, the Homeowner Energy Freedom Act. Congress.gov says the bill would repeal the electric home rebate program, repeal contractor-training grants, and rescind unobligated balances tied to those programs. (congress.gov) The Senate has not passed H.R. 4758. Congress.gov lists the bill as received in the Senate and referred to the Committee on Energy and Natural Resources after House passage. (congress.gov, govtrack.us) The money matters because these rebates are handled by states, not paid automatically through a federal tax return. The Department of Energy says each state, territory, or Tribe runs its own program and decides which products qualify under federal rules. (energy.gov) That has produced a patchwork rollout. By April 2024, the Department of Energy said New York was the first state approved for funding, and 11 other states had already submitted applications; by February 2026, the American Council for an Energy-Efficient Economy said about a dozen states had opened programs and nearly all states had applied for funding. (energy.gov, aceee.org) Supporters of the rebates say they cut household energy bills and help families afford equipment with high upfront costs. The Department of Energy said in 2024 that the broader $8.8 billion Home Energy Rebates effort could save consumers up to $1 billion a year, while the American Council for an Energy-Efficient Economy said many households could save hundreds of dollars annually. (energy.gov, aceee.org) Backers of the repeal argue the federal government should stop subsidizing home electrification. During House debate on the bill, Representative Craig Goldman said the measure would restore “freedom to make their own choices in their own homes,” according to Politico’s E&E News. (politicopro.com) Industry groups that otherwise support appliance sales have warned that ending the program mid-rollout would disrupt work already underway with state energy offices. The Air-Conditioning, Heating, and Refrigeration Institute said manufacturers and contractors had spent years helping states get the rebate programs off the ground. (thecooldown.com) For homeowners, the next question is not whether the rebates existed, but whether their state program is open and whether Congress leaves the remaining money in place. As of April 12, 2026, the repeal bill has cleared the House but not the Senate. (energy.gov, congress.gov)