(Bloomberg) -- President Joe Biden will announce $7.3 billion in awards for more than a dozen rural electric cooperatives during a trip to Wisconsin on Thursday, as Democrats try to highlight efforts to combat inflation in a critical battleground state.
The funding – spread across 16 cooperatives that serve rural residents and businesses across 23 different states – is expected to help underwrite the purchase of clean energy, as well as investments in transmission lines, substation upgrades, and software to help lower energy costs. The investments are the first tranche of funding from the Inflation Reduction Act, which Congress passed in 2022.
Democrats hope the announcement can provide a boost across states where Vice President Kamala Harris, who has stepped up efforts to court rural voters in recent days, faces a tough battle against Republican presidential nominee Donald Trump.
Harris held a 2-point advantage over Trump across swing states in the latest Bloomberg News /Morning Consult poll, taken after the Democratic National Convention. Biden’s visit to Westby on Thursday comes just days after Trump visited nearby La Crosse for a town hall.
“This is allowing farmers and ranchers and producers and small business owners to have an individual benefit of clean, renewable energy,” Agriculture Secretary Tom Vilsack said in a call with reporters.
Trump has repeatedly assailed Democrats over energy prices that rose significantly after the coronavirus pandemic, pledging that he would implement policies cutting prices in half during his first year in office. The former president has proposed tax cuts for fossil fuel producers and cutting federal programs that support clean energy technology.
In Wisconsin, the average price of electricity to residential customers rose by 3% compared to a year before, according to a June reading by the US Energy Information Administration. The state’s Dairyland Power Cooperative is being awarded nearly $573 million to procure energy through wind and solar power purchase agreements.
The cooperative estimates the funding will cut rates for members by 42% over the next decade. Energy projects receiving funding must be completed before the end of 2031.
“The New ERA program showcases what is possible when the government prioritizes voluntary, flexible decision-making and allows electric co-ops to take a tailored approach to respond to local needs,” Jim Matheson, the chief executive of the National Rural Electric Cooperative Association, said in a statement.
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