Nancy Mace Seeks Release of $285M EV Grant for Mercedes-Benz Plant in South Carolina
Key Insights
Rep. Nancy Mace (R-South Carolina) privately urged the Trump administration to release $285 million in federal funding for a Mercedes-Benz EV plant conversion.
The funds, part of Biden's 2022 climate legislation, aim to create 800 jobs and boost local economic growth in Charleston.
The Trump administration has frozen climate-related funding, creating tension for GOP lawmakers balancing job preservation and party priorities.
Democrats argue Republican opposition to clean energy investments harms their own constituents, as 85% of such funds benefit GOP districts.
Rep. Nancy Mace (R-South Carolina) has privately requested the Trump administration to release $285 million in federal funding for the Mercedes-Benz Vans plant near Charleston, South Carolina, to support its transition to electric vehicle (EV) production. The funds, allocated under the Biden administration’s 2022 climate legislation, are part of a $1.8 billion program aimed at revitalizing shuttered or at-risk auto plants for EV manufacturing and supply chain conversion.
Mace’s letter to Energy Secretary Chris Wright highlights the project’s potential to create 800 jobs and attract additional investment to the region. "We strongly support President Trump’s initiative to restore fiscal responsibility," the letter states, while emphasizing the need to prioritize projects with "sustained economic growth." The Mercedes-Benz plant’s prototype for a light-duty electric van aligns with this goal, ensuring "America-made options remain available in the commercial vehicle sector."
The Trump administration has frozen disbursements from the Inflation Reduction Act and other climate-related programs, citing a mandate to promote "American Energy Dominance." This has created a dilemma for GOP lawmakers like Mace, who must reconcile party loyalty with the economic benefits of clean energy investments in their districts. A recent analysis by nonpartisan group E2 found that 85% of such investments under the 2022 law have flowed to Republican-held districts.
Democrats, including former Biden official Alex Jacquez, argue that Republican efforts to repeal clean energy funding undermine job creation in their own communities. "These funds were appropriated specifically to help autoworkers stay in their jobs," Jacquez noted. Meanwhile, some Republicans, like Rep. Jen Kiggans (R-Virginia), have pushed back against sweeping cuts, warning of disruptions to ongoing projects and the U.S. competitiveness in the global energy race.
The Energy Department stated it is reviewing all activities to ensure compliance with Trump’s priorities, leaving the fate of the Mercedes-Benz grant uncertain. As the Senate debates a tax bill targeting Biden-era clean energy incentives, the tension between fiscal conservatism and local economic development continues to divide the GOP.