Federal energy efficiency rebate programs will no longer cover a switch from fossil fuels to electricity for heating, according to long-awaited guidance from the Department of Energy.

The department published an update on how it will implement consumer programs with $8.8 billion in funding. The new provisions include eliminating use of diversity, equity and inclusion considerations, among other changes.

This follows legal challenges after President Donald Trump issued an executive order last year, upon returning to office, canceling the release of funds from Biden’s Inflation Reduction Act, including rebates for home energy efficiency. A coalition of states successfully sued to restore the funding, obtaining an injunction in March 2025 .

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