Photo courtesy of United States Hydrogen Alliance
The US Hydrogen Lobby, led by the United States Hydrogen Alliance (USHA), is strategically abandoning its heavy reliance on Washington, D.C., to engage powerful state policy architects including governors, state energy offices, public utility commissions, and legislatures. This shift underscores a belief that state policy will drive the next wave of hydrogen development, especially after federal laws like the Bipartisan Infrastructure Law and Inflation Reduction Act allocated around 7 billion USD for seven regional clean hydrogen hubs. With President Trump’s reelection bringing uncertainty to incentives such as the Section 45V tax credit—facing Republican proposals to end eligibility after 2025—the lobby sees state policy as a more reliable path to overcome permitting, siting, and demand hurdles for decarbonizing industry and transport.
Federal Foundations Face Volatility
Federal initiatives jumpstarted U.S. hydrogen momentum, with hubs receiving 1.2 billion USD in Texas and 1 billion USD in the Midwest, alongside up to 1 billion USD more for demand support like offtake contracts. Yet, political shifts have intensified risks: a coalition warned senators that curtailing 45V would threaten “tens of billions of dollars” in investments and global leadership to China.
DOE has positioned hubs as “essential” for energy security and communities, but reframing under Trump emphasizes industrial strength over climate goals, benefiting fossil-heavy states. Lobbying expenditures hit 41 million USD federally in one year, highlighting the high stakes as state policy now fills potential voids.
State Policy Emerges as Hydrogen’s New Frontier
USHA explicitly targets “governors, state energy offices, public utility commissions, and state legislatures instead of federal agencies and Congress”, crediting state policy wins like Utah’s tax credits for production. Events such as the Regional Hydrogen Policy Leaders Convention in Detroit (May 28, 2026) and the National Hydrogen Policy Leaders Convention in Atlantic City (September 8-10, 2026) aim to rally 179+ policymakers for frameworks on infrastructure and fleets.
Michigan’s 10 million USD jobs grant and 6 million USD tax break for a 400 million USD gigafactory—promising 70,000 USD average wages—illustrates state policy drawing investments, despite stalls from uncertainties. These agile state policy levers, from utility regulations to procurement, position states to unlock private capital where federal paths falter.