HOPE for HOMES Act: Federal Grant Program Aims to Boost Home Energy Efficiency Nationwide

Overview

The Home Owner Managing Energy Savings (HOPE) for HOMES Act is a federal proposal designed to accelerate home energy retrofits across the United States by combining direct consumer rebates with grants that expand the residential energy efficiency workforce. The legislation was first introduced in the 116th Congress as H.R. 7325 on June 24, 2020, and was re-introduced in the 117th Congress as H.R. 3456 on May 20, 2021, with a companion Senate bill (S. 1768) led by then-Rep. Peter Welch of Vermont along with a bipartisan group of cosponsors.

What the Bill Proposed

The HOPE for HOMES Act had two central components:

1. Home Energy Savings Retrofit Rebate Program

The bill directed the U.S. Department of Energy (DOE) to establish a rebate program providing payments to homeowners who complete qualifying energy efficiency upgrades. Rebates were tied to measured or modeled reductions in home energy use, with larger rebates available for deeper retrofits and for projects serving low- and moderate-income households. The 2021 version authorized roughly $8.4 billion for the rebate program.

2. Contractor Training and HOPE Qualification Grants

The second pillar of the legislation created a grant program to support online training for residential contractors, including a new "HOPE Qualification" developed by DOE. Individuals who completed the qualification could receive grants of up to $1,000, and states could receive funding to administer workforce development programs. The 2021 bill authorized approximately $500 million for workforce and training activities.

Why It Mattered for Homeowners

Residential buildings account for a significant share of U.S. energy use and greenhouse gas emissions. Supporters of the HOPE for HOMES Act argued that combining consumer rebates with a trained contractor workforce would lower the total cost of retrofits, shorten project timelines, and make high-quality efficiency work available in more communities, including rural areas and underserved neighborhoods.

Legislative Path and Outcome

Neither the 2020 nor the 2021 standalone versions of the HOPE for HOMES Act received a floor vote. However, major elements of the proposal were folded into the Inflation Reduction Act (IRA), signed into law on August 16, 2022. The IRA established the Home Energy Rebate programs (HOMES and High-Efficiency Electric Home Rebate programs) administered by DOE through state energy offices, along with the State-Based Home Energy Efficiency Contractor Training Grants program, which began rolling out to states in subsequent years.

How Homeowners Can Access Benefits Today

Because the rebate and training provisions are now being implemented through the IRA rather than the HOPE for HOMES Act itself, homeowners interested in participating should:

• Check with their state energy office for the launch date and rules of their state's HOMES and/or High-Efficiency Electric Home Rebate program.
• Review federal energy efficiency tax credits (such as the Energy Efficient Home Improvement Credit) that can be combined with state rebate programs.
• Work with contractors who hold recognized residential energy efficiency credentials, since some rebates require qualified installers.

Key Takeaways

• The HOPE for HOMES Act was a federal proposal to fund home energy retrofit rebates and contractor training grants.
• It was re-introduced in the House on May 20, 2021 (H.R. 3456) after an initial 2020 version.
• Core provisions were enacted through the Inflation Reduction Act in August 2022, and are now being delivered to homeowners primarily through state-administered rebate programs.