Press Statement

New Report: Thousands of Jobs and Billions in Economic Growth at Risk in Appalachian States if Inflation Reduction Act Programs Are Cut

By June 27, 2025July 9th, 2025No Comments

FOR IMMEDIATE RELEASE

June 27, 2025

CONTACT:John Neurohr, [email protected], 717-364-6452

ReImagine Appalachia and Keystone Research Center release state fact sheets showing devastating economic impacts across Pennsylvania, Kentucky, Ohio, and West Virginia

APPALACHIA — ReImagine Appalachia and Keystone Research Center today released a series of state-specific fact sheets detailing the severe economic consequences that would result from proposed cuts to manufacturing and clean energy provisions in the Inflation Reduction Act (IRA). The analysis comes as Congress considers a reconciliation bill that threatens to roll back these critical programs.

State-level impacts for the following states have been summarized into four sheets: Pennsylvania, Kentucky, Ohio, and West Virginia.

Individual Congressional district factsheets include even more examples of projects made possible by the funding Congress is proposing to eliminate: 

The new fact sheets build upon the organizations’ April 2024 report, “If You Fund It, They Will Come,” which documented how IRA investments have catalyzed unprecedented growth in Appalachia’s manufacturing and clean energy sectors. The report found that federal clean energy investments in the region grew 17-fold between 2022 and 2024, totaling $11.5 billion across Kentucky, Ohio, Pennsylvania, and West Virginia, triggering a doubling of public and private clean energy spending from $7.7 billion in 2022 to nearly $15.9 billion in 2023, with continued increases in 2024.

“IRA investments are working for Appalachia, creating jobs, lowering energy costs, and spurring economic growth,” said Diana Polson, Senior Policy Analyst at Keystone Research Center. “The reports show that cutting these programs now would be devastating for our communities that are finally seeing new economic opportunities after decades of disinvestment.”

The state-specific impacts of IRA cuts would include:

Pennsylvania

  • Reduce Pennsylvania’s GDP by $4.5 billion in 2030 and $5.4 billion in 2035
  • Cost nearly 19,500 Pennsylvania jobs in 2030 and 21,700 jobs in 2035
  • Increase average annual household energy costs by $210 per year in 2030 and $550 per year in 2035, adding $13.4 billion to Pennsylvanians’ energy bills through 2035
  • Put at risk 105 clean energy projects, including 47 announced but not started, and 20 currently under construction

Kentucky

  • Reduce Kentucky’s GDP $1.9 billion in 2030 and $4 billion in 2035
  • Cost 14,000 Kentucky jobs in 2030 and 25,000 jobs in 2035
  • Increase average annual household energy costs by more than $250 per year in 2030 and more than $860 per year in 2035, adding $6.6 billion to Kentuckians’ energy costs through 2035
  • Put at risk 64 clean energy projects, including 26 announced but not started, and 19 under construction
  • Threaten more than 24,000 construction and operations jobs projected across Kentucky

Ohio

  • Reduce Ohio’s GDP $6.3 billion in 2030 and $7.8 billion in 2035
  • Cost over 32,000 Ohio jobs in 2030 and nearly 38,000 jobs in 2035
  • Increase average annual household energy costs by nearly $180 per year in 2030 and nearly $410 per year in 2035, adding $11 billion to Ohioans’ energy costs through 2035
  • Put at risk nearly 150 clean energy projects, with 37 announced but not started, and 17 under construction
  • Threaten nearly 25,000 construction and operations jobs projected across Ohio

West Virginia

  • Reduce West Virginia’s GDP $190 million in 2030 and $320 million in 2035
  • Cost nearly 2,000 West Virginia jobs in 2030 and nearly 3,300 jobs in 2035
  • Increase average annual household energy costs by nearly $160 per year in 2030 and more than $410 per year in 2035, adding $1.5 billion to West Virginians’ energy costs through 2035
  • Put at risk 23 clean energy projects, including 14 that have just been announced or are under construction

“These fact sheets provide a clear picture of what’s at stake for Appalachian communities if federal investments in manufacturing and clean energy are cut,” said Dana Kuhnline, Program Director at ReImagine Appalachia. “The region is experiencing an economic renaissance thanks to these programs, but that progress will be reversed if we pull the plug now.”

The organizations are urging lawmakers to protect the manufacturing and clean energy provisions of the Inflation Reduction Act to ensure continued economic growth and job creation across the region.

State-level impacts for the following states have been summarized into four sheets: Pennsylvania, Kentucky, Ohio, and West Virginia.

District-level fact sheets, including dozens of examples of projects funded by the cuts Congress is proposing, can be found in these folders: 

About ReImagine Appalachia

ReImagine Appalachia is a coalition of individuals and organizations working to transform Appalachia’s economy through sustainable development, creating good jobs, and addressing climate change. For more information, visit reimagineappalachia.org.

About Keystone Research Center

Keystone Research Center is a nonprofit, nonpartisan research organization that promotes a more prosperous and equitable Pennsylvania economy. For more information, visit keystoneresearch.org.