Arizona small businesses out thousands of dollars due to Trump’s halt on federal funds

PHOENIX — Arizona small businesses responsible for keeping low-income households cool are out thousands of dollars due to lack of federal funds.

State programs that provide various home repairs and services, including upgrades to Heating, Ventilation and Air Conditioning (HVAC) systems, to low-income households have been suspended.

Access to funding was cut off after President Donald Trump froze nearly all federal dollars to states on Jan. 20, according to Director of the Governor’s Office of Resiliency Maren Mahoney.

How does the lack of federal funds affect Arizonans?

The Efficiency Arizona program is funded by the U.S. Department of Energy and the Inflation Reduction Act, which covers the cost of home upgrades and supports the use of clean energy.

The Department of Energy Home Electrification and Appliance Rebate program provides eligible low-income residents discounts of up to $8,000 to upgrade or repair air conditioning systems.

“They would be able to receive a significant discount essentially in order to replace those air conditioning units with a functioning, efficient heat pump,” Mahoney said.

The program had planned to add future phases and include rebates for new electric appliances and multi-family projects. The program has helped a handful of households, but there are still thousands of pending applications, Mahoney said.

More than 23,000 Arizonan households that qualified to take part in the program have been affected, according to an Arizona Governor’s Office of Resiliency press release. 

How has this affected Arizona small businesses?

HVAC contractors have been unexpectedly left with debt and have always counted on the government to reimburse work in a timely manner, Mahoney said.

“HVAC contractors in our state are left holding the bag because the federal government is not holding up their end of the bargain,” Mahoney said.

Northern Arizona HVAC contractor Cozy Home even hired additional workers to meet the demand for the program.

Hundreds of Cozy Home customers needed rebates to replace air conditioning heat pumps to cool their homes in the summer.

“By freezing these rebate funds, the Trump administration has left Arizonans in the cold and heat, pulled millions of dollars out of local economies and cost hard-working, well paying local jobs,”  Cozy Home owner Eli Chamberlain said in a press release.

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