Video not working? Click here to view the webinar on YouTube.
On July 22, 2025, the Local Infrastructure Hub hosted a session to discuss how the One Big Beautiful Bill Act (H.R. 1) will shift the fiscal landscape for local governments. This session explored how the legislation will affect which infrastructure grants you apply for, how awarded project contracts are negotiated, and how projects are implemented. We were joined by Amy E. Turner, Director of the Cities Climate Law Initiative at the Sabin Center for Climate Change Law and Matthew Stephens-Rich, Director of Programs, Electrification Coalition, to discuss how the recently passed federal budget will affect past and future infrastructure grant opportunities.
Key Insights Shared
Stay engaged in federal policymaking.
The U.S. The Conference of Mayors (USCM) has worked to protect tax-exempt municipal bonds, and expand housing and child tax credits in the reconciliation bill, while also warning cities about the long term deficit impacts of Medicaid cuts. Dave Gatton at USCM urged city leaders to stay engaged in federal policymaking to safeguard these local funding tools, and to advocate for critical programs that protect infrastructure programs.
Accelerate the start of clean energy projects to take advantage of Elective Pay.
While Elective Pay for clean energy tax credits remains intact under H.R. 1, the underlying tax credits have been significantly impaired. Strict Foreign Entity of Concern (FEOC) rules, and early sunset dates drastically narrow the window of opportunity for cities to take advantage of these tax incentives. Amy Turner, from the Sabin Center for Climate Change, encouraged cities to immediately assess and prioritize energy projects, and if possible, start construction before the end of 2025 to avoid the complex and restrictive FEOC requirements. For projects still in the planning or permitting phase, seek technical guidance to ensure that your city meets the Commence Construction Criteria. This proactive step will maximize your eligibility for federal funding before the new constraints fully take effect.
Move urgently to procure and place EVs into service.
The commercial EV tax credit and personal EV tax credits are phasing out on September 30, 2025. The phase out leaves cities with a very short runway to make eligible purchases and claim tax benefits. For fleet vehicles, both purchase and “in service” status must be completed by the deadline. Cities should pay careful attention to documentation and procurement logistics to ensure that vehicles are received or in fleet possession within the allotted time frame.
Resources Shared During the Webinar and in Discussion:
- Navigating OBBBA: phaseouts, prohibited foreign entity rules, and other new rules
- Final H.R. 1 Overview
- Commence Construction Guidance
- Lawyers for Good Government Beginning of Construction Guidance
- Electric Vehicle and Charging Tax Credits After the One Big Beautiful Bill Act
- Drive Electric Vehicle Fleets
- Elective Pay Blueprints
- Annotated Tax Forms for Electric Vehicle and Charging Tax Credit
- Local Infrastructure Hub Fall 2025 Bootcamps
- How the One Big Beautiful Bill Act Could Affect Local Infrastructure Projects
- Rewiring America’s guide to Consumer-Facing Credits
Free Technical Assistance Opportunities
Municipalities can access expert support to apply for and implement grants, including through no-cost Bootcamps and Workshops. Bootcamps are multi-week, cohort based programs that guide cities through the full application development process. Workshops are intensive, half-day sessions focused on targeted, grant-specific training. Register today to participate in the following trainings:
- Drinking Water and Clean Water State Revolving Fund Workshop
- Rail Elimination Crossings and Consolidated Rail Infrastructure and Safety Improvements Workshop
- Brownfields Workshop
- Direct Pay Workshop
- Safe Streets and Roads for All Workshop
- Grant Implementation Bootcamp