Efficiency Arizona Program Paused Due to Federal Grant Funding Uncertainty

20,315 Arizona households impacted and business on hold for local contractors.

Phoenix, AZ — Last week, the Arizona Governor’s Office of Resiliency was forced to pause its Efficiency Arizona program. Federal grant funding for the program has been withheld and not consistently available due to the current federal executive orders, memorandums from the White House Office of Management and Budget, and communications from the U.S. Department of Energy.

Efficiency Arizona is a statewide program funded by the U.S. Department of Energy (DOE) Home Energy Rebates programs and initiated by the Inflation Reduction Act. DOE awarded the Governor’s Office of Resiliency $153 million to help Arizonans save money on their utility bills, upgrade to more efficient electric equipment and appliances, and improve air quality. Arizona is a party to New York v. Trump, a multi-state lawsuit brought against the federal government, in part, to stop the federal government from blocking funding for Efficiency Arizona.

"Arizona has already been awarded this money, and the people of Arizona are relying on it. The Trump administration’s refusal to release these funds puts this program in limbo, leaving homeowners and contractors in a prolonged state of uncertainty," said Governor Katie Hobbs. "This program is crucial to lowering energy costs for over 20,000 Arizonans and supporting Arizona’s energy infrastructure and future. I am committed to protecting Arizonans and ensuring the federal government is not holding their federal tax dollars hostage."

Launched in 2024, the first phase of Efficiency Arizona was underway, providing much-needed discounts of up to $8,000 for eligible Arizonans to replace non-functioning air conditioning units with efficient heat pumps. Future phases of the program will add rebates for new electric appliances and multifamily projects using federal grant funding from DOE’s Home Electrification and Appliance Rebate Program (HEAR).

"Efficiency Arizona is essential to support seniors and other vulnerable Arizonans who need to replace broken air conditioning units with new efficient heat pumps in advance of our impending summer. Lack of funding and program stability is preventing that from happening," said Governor’s Office of Resiliency Director Maren Mahoney. "Efficiency Arizona's success depends on local contractor participation, and their ability to complete work and receive payment for that work. Withholding awarded funds is hurting working-class Arizonans and putting Arizona jobs at risk."

Some contractors participating in Efficiency Arizona, including Ideal Air Conditioning and Insulation, are waiting to be paid federal funding for work already completed on Arizonans’ homes.

"Halting the funding for these rebate programs hurts small businesses and the communities they serve. The contractors involved are owed tens of thousands of dollars because we participated in this program, trusted the state of Arizona, and trusted the federal government to do what they promised," said Elena Chrimat, co-owner of Ideal Air Conditioning and Insulation. "We saved Arizonans money and made their homes more energy efficient and comfortable – and we were rewarded with debt we don't deserve."

Participating contractor CozyHome hired additional staff to accommodate program needs in Northern Arizona communities.

"We have over one hundred low- and moderate-income customers that have been waiting over two years for these rebates to become available. These rebates make upgrading old and inefficient heating and cooling systems with new efficient heat pumps affordable to the average household, reducing energy costs for homeowners who need it most," said Eli Chamberlain, owner of CozyHome. "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."

In addition to the HEAR grant, Efficiency Arizona will implement DOE’s Home Energy Rebates (HOMES), which provide performance-based energy efficiency improvement rebates to income-eligible single-family households and multi-family buildings. Without Efficiency Arizona, Arizona is at risk of losing:

• Rebate funding for 20,315 qualified households.
• An estimated average bill savings of 20% per participating household.
• Work for local contractors.

Since 2023, the Governor’s Office of Resiliency has been awarded more than $272 million in federal grants to support its mission of creating a sustainable and thriving Arizona today and for future generations.