Washington, D.C
Want government money for a heat pump? Time might be running out
A technician installs an electrical heat pump at a home in Washington, DC, in August 2024.
ANDREW CABALLERO-REYNOLDS/AFP via Getty Images/AFP
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ANDREW CABALLERO-REYNOLDS/AFP via Getty Images/AFP
Heat pumps are electric appliances that can both heat and cool your home.
Scientists see them as a climate solution because heat pumps reduce planet-heating emissions. They cut pollution from burning gas for heating, and reduce the use of gas infrastructure that leaks planet-heating methane gas.
And heat pumps are highly efficient, which means less electricity is needed to use them than traditional heating systems like fossil fuel furnaces and boilers. Researchers at the Department of Energy’s National Renewable Energy Laboratory calculate that 62% to 95% of households would save money by switching to a heat pump. “ It’s an enormous amount of savings,” says Ari Matusiak, CEO of the nonprofit, Rewiring America. “That’s just a fact of the technology being superior.”
The Biden administration’s 2022 climate legislation introduced new federal tax incentives of up to $2,000 for heat pump equipment and installation costs. Many states as well as cities and utilities offer additional financial incentives.
So what money is available right now for a prospective heat pump buyer? And how might a second Trump administration and a Republican-controlled Congress impact this money?
Here are the answers to your heat pump and money questions.
Before we get to money, remind me, how do heat pumps work?
Heat pumps are “basically this magical two-in-one device,” Matusiak says.
For cooling, heat pumps work like air conditioners. They run on electricity and use refrigerants. For heating, heat pumps also use refrigerants. The refrigerants absorb bits of heat from outdoor air and bring them inside to warm up a home.
Some types of heat pumps are specifically designed for extra cold climates, and heat pump sales are booming in countries like Norway, Finland and Sweden.
What kind of money can I currently get from the federal government to buy a heat pump?
The U.S. federal government is currently offering up to $2,000 for homeowners buying heat pumps. The money comes in the form of a tax credit, which lowers your final tax bill, says Steven Nadel, executive director of the American Council for an Energy-Efficient Economy, a research organization working on saving energy.
Nadel notes not all heat pumps are eligible for the federal tax credit. The heat pump has to have a high efficiency rating from the Consortium for Energy Efficiency, a nonprofit. Some manufacturer websites list tax credit-eligible equipment, as does the ENERGY STAR Product Finder. Nadel says to check the Department of Energy’s website to see which heat pumps qualify for federal tax credits.
James Tucker with an efficient heat pump for his home near Oakland, Calif.
Julia Simon/NPR
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Julia Simon/NPR
What about states, cities, and my local utility? Can I get money from them?
Many homeowners can get additional money for heat pumps from their local utility, state, or city. Some states, cities and utilities have incentive programs they pay for themselves. There’s some additional money for states from the federal government and the 2022 national climate legislation.
Some states offer heat pump money as tax credits. Some money comes in the form of “point of sale” rebates. That means the money comes off the top of the price of equipment or installation. Utilities often offer post-purchase rebates.
Rewiring America and another nonprofit called The Switch is On have online tools that use people’s zip codes and income to search for which federal, state, local, and utility incentives consumers qualify for. Nadel encourages prospective buyers to check in with their local utility to see if it offers additional money.
I’m a renter and want to buy a heat pump. Can I get money too?
More than a third of Americans rent. While some renters are not in a position to, say, swap out their homeowner’s furnace, some renters with flexibility might be interested in a portable heat pump. Portable heat pumps can go into a window much like a window air conditioning unit and plug into the wall for power.
Matusiak says window heat pumps may soon be eligible for more of these rebate programs, so he encourages prospective buyers to also check out Rewiring America’s online tool.
What do the incoming Trump administration and a Republican-controlled Congress mean for current heat pump incentives?
Shuting Pomerleau, director of energy and environmental policy at the American Action Forum, a conservative think tank, is not optimistic about the future of federal heat pump money. “ Those incentives, whether they’re tax credits or, rebate programs are likely to go away under the upcoming Republican trifecta,” Pomerleau says.
The incoming Republican-led congress will be looking for revenue to pay for tax cuts, says Diana Furchtgott-Roth, director of the center for energy, climate, and environment at the Heritage Foundation, a conservative think tank based in Washington. They will likely get rid of spending programs from Biden’s 2022 climate legislation, she says, including the tax credits for heat pumps.
The Trump transition team did not respond to NPR’s request for comment.
Pomerleau notes that while federal heat pump money is at risk of drying up, some states may choose to continue their incentive programs using other money.
Matusiak says that heat pump rebate programs have been popular in red and purple states as well as blue states. He notes that after the election, states including Texas, Nebraska, Louisiana, Missouri, Kansas, Kentucky and Ohio applied for federal money for their heat pump rebate programs.
A technician removes a gas water heater from a home in Washington, DC. Researchers see heat pumps as climate solutions because they often replace appliances that run on fossil fuels like gas. Heat pumps run on electricity that’s increasingly powered by renewable energy.
BASTIEN INZAURRALDE/AFP via Getty Images/AFP
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BASTIEN INZAURRALDE/AFP via Getty Images/AFP
So if I’m thinking about getting a heat pump, does it make sense to get one sooner rather than later?
Nadel and Matusiak say before you rush out and buy a heat pump, think about what you already have in your home and how well it’s working.
“If you have a perfectly functioning furnace that you bought two years ago, you shouldn’t go get rid of it,” Matusiak says.
But if it starts to die, he says, then buy a heat pump.
Pomerleau says it may make sense to buy that heat pump sooner rather than later to be sure to access federal money. She thinks it will take Republicans some time to make changes to the tax code, but she suggests buying a new heat pump before the end of the 2025 calendar year to be more sure of qualifying for a federal tax credit.
Washington, D.C
The director of the Congressional Budget Office—known for its gloomy national debt data—is very optimistic that a crisis will be avoided entirely | Fortune
Dr Phillip Swagel is an optimist, both by nature and when he looks at the U.S. economy.
This fact is perhaps at odds with what one might assume: Swagel is the director of the Congressional Budget Office (CBO), the nonpartisan agency that offers independent budgetary and economic analysis to Congress.
Very often—an inevitable occupational hazard—the subject of national debt and the interest the U.S. Treasury pays to maintain is its central focus. The numbers are eye-watering: Public debt stands at more than $39 trillion. The interest expense on that borrowing now exceeds $1 trillion a year. Indeed, the latest budget update from the CBO highlights that the government—according to preliminary estimates—paid out nearly $530 billion between October 2025, when the fiscal year starts, and March 2026. This equates to more than $88 billion in interest payments a month, or more than $22 billion a week.
The CBO’s figures are routinely cited by policymakers, think tanks, and lobbyists as alarming evidence that the U.S. needs to find a more sustainable fiscal path or risk dire straits.
Swagel doesn’t subscribe to the notion that the U.S. will face a crisis of its own making. His justification is simple: He was at the Treasury during the 2008 financial crisis, and joined the CBO months before the COVID pandemic began. He has watched as the U.S. economy, seemingly against all odds, has clawed its way out of economic crises before.
That’s not to say Swagel isn’t a staunch advocate of setting the U.S. on a more sustainable fiscal path—rather, he trusts the people in power to do so when the time comes.
Why the optimism?
Among those concerned about national debt are notable names: JPMorgan Chase CEO Jamie Dimon, Federal Reserve Chairman Jerome Powell, and Bridgewater Associates founder Ray Dalio. Tesla CEO Elon Musk is also worried about federal spending and has endorsed a plan floated by Berkshire Hathaway founder Warren Buffett that would render members of Congress ineligible for reelection if they allow deficits to exceed 3% of GDP.
On the other hand, optimistic economists suggest that, despite the value of the debt, it’s not actually an issue: the bond market is holding steady, indicating a reliable market of buyers. Likewise, the U.S.’s own central bank buys huge swaths of the debt, meaning, in the simplest of layman’s terms, the economy can essentially print its own money. There are holes in this argument, not least the fact that Fed chairman nominee Kevin Warsh has suggested he would like to reduce the Fed’s balance sheet and may therefore be less inclined to finance borrowing.
Swagel’s positive outlook doesn’t rely on the argument that a crisis hasn’t happened yet, so therefore it never will: “[My optimism] is rooted in my experience,” Swagel tells Fortune in an exclusive interview in Washington D.C. “First being at Treasury during the financial crisis and seeing very difficult times and the country coming together with an effective response—not saying it’s perfect, lots of controversy—but it was effective.”
“The second thing is policymakers are smart, they’re thoughtful. Interacting with members of Congress makes me optimistic. I know you read about all the squabbles … I’m completely aware of this, but the policymakers that are thinking about these things are thoughtful and effective. Not necessarily always effective at passing legislation, but that’s part of our political system, it was set up to make it difficult ot pass legislation.”
Decisions on the horizon
Swagel’s optimism that Congress will be pushed into action will be tested sooner rather than later, likely at some point in the next six years, he told Fortune. This is partly due to the fact that, according to the Committee for a Responsible Federal Budget (CRFB) both Social Security and Medicare will become insolvent within that time period.
“Making progress to address the fiscal trajectory would be a positive for the U.S. economy,” Swagel said. “Credible steps would lead to lower interest rates that would make the subsequent adjustment easier, there is a reward to virtue. It’s a positive thing, we can’t go on [with] the scolding narrative. My sense is that members of Congress understand the fiscal situation, it’s not that everyone single one has looked at our one-pager of numbers and understands the debt to the third decimal point, but they understand something needs to be done.”
“It doesn’t have to be done immediately, but at some point reasonably soon.”
Swagel is of the opinion that bond investors haven’t increased risk premiums not because they’re not worried about a fiscal crisis, but because they have priced in preventative action from Congress—in his mind “a vote of confidence that my optimism is not misplaced.”
“As a country, we face up to these problems. It’s not happening now, I’m not sure it’s going to happen in the rest of this year or even the next year, or the next two years. But we will face up to it, and the market in some sense expects us to, because otherwise interest rates would be higher,” he explained.
The Cheesecake Factory
The role of the CBO, to some extent, is to provide policymakers with their options if and when they do choose to take action on federal deficits. It’s a menu not unlike the Cheesecake Factory, Swagel says: Large, inclusive of a range of modifications and options, and delivered without judgement.
“Right now it’s maybe a pick three, and you’re looking at a six or seven course menu,” joked Caleb Quakenbush, director of fiscal policy at the Bipartisan Policy Center, in an interview with Fortune. “The longer you delay, the more you’re gonna have to add to your tab, and those options become more expensive.”
Indeed, economists and analysts aren’t necessarily worried about the absolute level of government debt, rather the debt-to-GDP ratio. Depending on whom you ask, the debt-to-GDP ratio stands at around 122% of GDP at present. This measure demonstrates an economy’s spending versus its growth, and the risk associated with lending to a nation that isn’t growing fast enough to handle its spending. To rebalance that ratio, an economy could either cut spending or increase growth—the latter being by far the less painful option.
The growth option is becoming less feasible, Michael Peterson, CEO of fiscal think tank the Peter G. Peterson Foundation, told Fortune in an exclusive interview: “I think it requires government action because we’ve waited so long. We’ve added so many trillions, and the current deficit is so big at 6% that the level of growth you would need really exceeds what is feasible.
“Growth needs to be a part of it, but it’s sort of a vicious cycle. The longer we delay, the more debt we have, the slower growth is going to be. The more we get this under control, I think the greater optimism there is, interest rates go down, more growth comes from that. It’s sort of a virtuous or vicious cycle depending on your policy response.”
TALLAHASSEE, Fla. (WCTV) – Seventy-two veterans took a trip Saturday to our nation’s capital to visit memorials honoring their service in the armed forces.
This year marks the 12th trip to Washington, D.C. for Honor Flight Tallahassee.
Early Saturday morning, veterans and their guardians met to take a charter flight up to D.C.
Throughout the day, veterans were taken to the World War II memorial, as well as the Korean and Vietnam War memorials. The veterans also visited Arlington National Cemetery and the Tomb of the Unknown Soldier.
More Tallahassee news:
The day ended with a wonderful welcome home celebration.
Our Jacob Murphey, Julia Miller, Taylor Viles, and Grace Temple accompanied the veterans, capturing moments from throughout the day.
The team will have live coverage from Washington, D.C. on Monday to share more from the day’s events.
We will continue to have coverage throughout the month of May, leading up to our Honor Flight special on Memorial Day.
To keep up with the latest news as it develops, follow WCTV on Facebook, Instagram, YouTube, Nextdoor and X (Twitter).
Have a news tip or see an error? Write to us here. Please include the article’s headline in your message.
Be the first to see all the biggest headlines by downloading the WCTV News app. Click here to get started.
Copyright 2026 WCTV. All rights reserved.
4 things to know about the weather:
- Chances of rain in the morning
- Gusty Sunday
- Chilly Monday
- Temps will rise again through the work week
Download the NBC Washington app on iOS and Android to check the weather radar on the go.
After a nice and warm Saturday, changes arrive for part two of the weekend.
The first half of your Sunday will have a chance for showers. Winds will pick up with our next system and are expected to gust to about 20-30 mph. Cooler air will settle in, and lows Sunday night fall into the 40s.
Highs temps Monday will reach only into the mid to upper 50s.
However, temperatures will rise through the week, so you won’t need your jackets every day.
QuickCast
SUNDAY:
Showers, then partly cloudy
Wind: NW 10-15 mph
Gusts @ 30 mph
HIGH: Lower 60s
MONDAY:
Partly cloudy
Wind: NW 10-15 mph
Gusts @ 25 mph
HIGH: Upper 50s
Stay with Storm Team4 for the latest forecast. Download the NBC Washington app on iOS and Android to get severe weather alerts on your phone.
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