Groundswell Capital warns of economic and energy security risks amid dismantling of landmark funding programs
TUCSON, Ariz. – March 18, 2025 – The future of clean energy investment in Arizona is in jeopardy as the federal government moves to dismantle two key programs under the $20 billion Greenhouse Gas Reduction Fund. Groundswell Capital, nonprofit warns that the rollback of the National Clean Investment Fund and the Clean Communities Investment Accelerator could unravel billions in planned investments, exacerbate energy insecurity, and stall economic growth in some of the state’s most vulnerable communities.
Groundswell Capital received a $10,000,000 capital infusion through the Coalition for Green Capital’s National Clean Investment Fund award as well as a $3,500,000 award through the Justice Climate Fund’s Clean Communities Investment Accelerator program. Combined these dollars were set to deploy across the state of Arizona for small businesses, affordable housing projects, infrastructure investments and more. For the past two years Groundswell Capital has worked with cities, towns, tribal governments, and state partners to develop a robust pipeline of projects topping over $1B in total qualified projects. Without these dollars, hundreds of projects are now at risk.
As of March 18, 2025 the EPA cancellation efforts of the programs have been paused by Judge Tanya Chutkan for lack of evidence and legal process, however the fate of these programs remains in the air. It is vital that Arizonana’s rally to support the clean energy transition in Arizona and recognize the economic and social impact of investments in this sector.
Energy Insecurity: A Life-and-Death Crisis in Arizona
Arizona’s heat and high energy costs make reliable access to electricity a matter of survival. Yet, thousands of families struggle to keep the lights on. Studies show that 21% of Arizona households experience energy insecurity, forcing many to make agonizing choices between cooling their homes and affording basic necessities like food and medication.
For example, in Maricopa County alone, a staggering 88% of indoor heat-related deaths occurred in homes with air conditioning. However, 70% of those units were non-functional, and 31% were not in use at the time of death—a grim reminder of how energy costs and access disparities can turn deadly.
The Greenhouse Gas Reduction Fund was designed to alleviate this crisis by making clean energy more affordable for low- and moderate-income households, stabilizing energy costs in rural and tribal communities, and injecting capital into economically distressed areas. Groundswell Capital had been spearheading projects to ensure that affordable housing, local manufacturing, and workforce development—particularly for high-wage, clean energy jobs—remained at the center of Arizona’s transition to a sustainable economy.
A Billion-Dollar Opportunity at Risk
With support from the Greenhouse Gas Reduction Fund, Groundswell Capital had cultivated a clean energy investment pipeline exceeding $1 billion, leveraging public-private funding at a ratio of $5 in private capital for every $1 in public dollars. These investments were set to fuel critical projects across Arizona, including:
Affordable housing that would cut energy bills for low-income families and support new housing supply
Water conservation initiatives designed to protect Arizona’s dwindling resources.
Job-creating clean energy infrastructure, strengthening the state’s economy.
Small business support programs aimed at reducing energy costs and boosting local competitiveness.
Now, with the loss of federal support, these projects—and the economic opportunities they represent—hang in the balance.
Call to Action: Preserving Arizona’s Clean Energy Future
Groundswell Capital is urging policymakers to reconsider the dismantling of these essential programs, warning that the economic and human costs of inaction are too high.
“This is not just an environmental issue—it’s an economic and social justice crisis,” said Dre Thompson, President of Groundswell Capital. “Arizona has the opportunity to lead in clean energy, create high-wage jobs, and provide affordable power to those who need it most. But without federal support, we risk losing billions in investment opportunities and leaving our most vulnerable communities behind.” Groundswell Capital continues to provide clean energy investments to homeowners through the EarthWise Program, but without the federal support will struggle to provide the same benefits for affordable housing, small businesses, churches, and nonprofits.
About Groundswell Capital
Groundswell Capital is a mission-driven lending nonprofit dedicated to sustainable economic growth, focusing on clean energy, small business financing, and community development. By aligning financial returns with environmental and social responsibility, Groundswell Capital is helping to shape a resilient and equitable future for Arizona.
For media inquiries, contact:
Dre Thompson
President,
Groundswell Capital
Comments