The fate of Rivian’s $6.6 billion federal loan remains unclear following a temporary freeze on federal funding and loans initiated by President Donald Trump’s administration.
In January, the U.S. Office of Management and Budget issued a memo pausing federal assistance programs, including business loans, before quickly rescinding it. Despite the reversal, the situation has left many -- including Georgia’s leadership -- uncertain about whether Rivian will receive the loan approved under President Joe Biden in November 2024.
“You know, they [Rivian] secured that loan at the tail end of the Biden administration, and, you know, I think there’s no secret that the Trump administration is taking a look at all those things. So I don’t really know where that stands right now,” Georgia Gov. Brian Kemp told WSB-TV 2, based in Atlanta.
The funding, which includes $6 billion in principal and about $600 million in capitalized interest, was intended to support Rivian’s new manufacturing facility in Georgia. The company has positioned the plant as a key component of its long-term expansion strategy, particularly for the upcoming R2 and R3 vehicle lines.
“This loan would enable Rivian to more aggressively scale our U.S. manufacturing footprint for our competitively priced R2 and R3 vehicles that emphasize both capability and affordability,” Rivian CEO RJ Scaringe said.
Despite the uncertainty, Rivian remains confident it will ultimately secure the loan. A company spokesperson emphasized the automaker’s role in U.S. manufacturing and job creation, stating, “We are providing thousands of American jobs in Georgia and contributing to onshore U.S. manufacturing.”
Kemp acknowledged the state’s commitment to the Rivian project but noted the need to remain cautious. “We got parameters in, and whether it’s the incentives, the site itself -- to protect taxpayers regardless of what happens with that site. Rivian keeps telling us they’re coming, and, you know, we’re taking them for their word at that,” he said.
As the Trump administration reviews federal spending commitments, the outcome of Rivian’s loan could have significant implications for the automaker’s expansion plans and Georgia’s economic landscape.
