WASHINGTON (The Hill) — The Environmental Protection Agency (EPA) on Tuesday detailed how it plans to spend $27 billion in climate funding provided by the Inflation Reduction Act (IRA).

The Biden administration explained that it will split the fund up into two programs. 

A total of $20 billion in grants will go to nonprofits that collaborate with local financial institutions including green banks, credit unions or housing finance agencies. That money will go toward projects that cut pollution and energy costs, according to the announcement.

The other $7 billion will go to states, tribes, municipalities and nonprofits to deploy rooftop or community solar energy in disadvantaged communities, the administration said.

The new details from the EPA come as Republicans appear to have targeted the funds in their proposal to limit spending amid an ongoing battle over the debt limit. 

A press release from House Budget Committee Republicans proposed cutting “wasteful EPA programs,” including what they described as “$27 billion for the EPA with no specific programmatic purpose.”

However, Democrats touted the program as important for bringing renewable energy to communities.

“A giant leap forward for bringing clean energy to communities who are too often left behind, the Greenhouse Gas Reduction Fund is one of the concrete actions taken as a direct result of the Inflation Reduction Act to make access to reliable and clean solar power easier for millions of Americans,” Majority Leader Chuck Schumer (D-N.Y.) said.