KREM2 News: Spokane-based firm places employees on furlough after federal funding freeze
Zero Emissions Northwest says its clients are currently facing the loss of $2M after President Trump put funding for the Inflation Reduction Act on hold.
KREM 2 NEWS
2/3/20252 min read
Author: Regan Gallo
SPOKANE, Wash. — Zero Emissions Northwest is a Spokane-based firm that helps farms and rural businesses from Seattle to Boise become more energy efficient, but now its employees are being placed on furlough after an executive order by President Donald Trump put about $2 million of its funding on hold.
The owner of the firm, David Funk, says the company's mission is to improve energy efficiency for farms.
"I spend lots of time in my car, drive 20,000 miles, just to have a cup of coffee with a farmer, just to build that trust," said Funk.
Funk says the improvement projects are made through grants provided by the U.S Department of Agriculture. Altogether, he says the company has received 67 Rural Energy for American Program (REAP) grants in 15 months, worth $3.7M and will aim to save a total of $20M for farmers, communities and rural small businesses. Funk says farmers will pay for the project upfront and the grants will reimburse all that money.
"We help the farmer scope out the project, we help them apply for the grant," said Funk. "Everything is spent up front and everything is that farmers money."
But now, with the pause on the Inflation Reduction Act which the USDA's funding falls under, Funk says there is about $2M that farmers across the region have already spent and Funk does not know if or when they will see that money again.
"You really get into the point of questioning the credit of the U.S if they are not going to pay the contracts they have signed. That is an undercurrent that I can't navigate," said Funk.
The executive order states that the Trump Administration will review reports from government agencies that fall under the Inflation Reduction Act in 90 days. But nowhere in the language does it guarantee funding will return.
Funk says that unknown is a big concern for the future of his business, his clients and his commitment to cleaner energy.
"So, what does this look like? Well, I hope I am around in 100 days," said Funk.
Funk says he hopes he can bring back his three employees, but right now, he does not have clear answers and is still trying to figure out the next steps.
As of now, Funk tells Krem2 News the feedback from his clients is across the board. Some are furious and others more understanding.
