Meeting Cascadia's climate goals will require millions of households to stop burning fossil fuels for warmth. In Oregon and Washington, buildings emit more pollution than any other sector besides transportation. (The building sector is the third highest emitting in British Columbia and Idaho, and fifth in Montana.)

Heat pumps powered by renewable electricity are what the International Energy Agency calls the "proven technology of choice to decarbonize heating," and several Cascadian jurisdictions are working hard to expand access to the technology. Oregon, for example, set itself a goal of heat pumps accounting for 65 percent of new residential heating, cooling, and water heating equipment sales by 2030. British Columbia resolved for all new space and water heating equipment sales and installations to be at least 100 percent efficient by 2030, a standard that favors heat pumps, which can exceed this threshold. Heat pumps have now outsold gas furnaces and central air conditioners for two consecutive years in Cascadia; nearly three heat pumps sold for every two gas furnaces in 2023.

Still, heat pumps are prohibitively expensive in upfront costs, and that fact, coupled with tightening public budgets, could threaten their rapid scale-up, especially among low-income families.

In this challenging context, leaders in Cascadia would do well to direct their limited treasuries of funds for public subsidies toward low-income households for whom heat pumps offer the biggest reductions in both utility bills and greenhouse gas emissions. At the same time, policymakers can support creative funding models, such as tariffed on-bill investments and green banks, to help more households get heat pumps installed. They can also strengthen building codes to ensure heat pumps are installed in new homes, avoiding costly future retrofits. This multi-pronged approach stretches scarce public dollars, while still reaching families that stand to benefit most from these clean, cost-saving, and comfortable systems.

Many families, particularly those with low incomes, cannot afford heat pumps. A medium-efficiency heat pump can cost between $14,000 and $22,000 in Cascadian states. The median heat pump costs $8,200 more than installing fossil-fuel heating equipment (such as a gas boiler) and air conditioning in Oregon; in Montana, that figure is $16,200. Steep costs stem from expensive manufacturing and labor, installer shortages and inexperience, the need for electrical upgrades in some homes, and the added cost of backup heating systems where required.

Governments have stepped in to help. The 2022 Inflation Reduction Act (IRA) provides rebates of up to $8,000 for low-income households purchasing medium- or high-efficiency heat pumps. These rebates have so far withstood roll-back attempts by the Trump administration; Oregon and Washington have already secured hundreds of millions of federal dollars to launch their rebate programs. (Montana has paused its rebate rollout, while Idaho has provided no public timeline.) But the IRA rebates are a one-time, capped allocation, and the Trump administration eliminated tax incentives for energy-efficient home improvements in July 2025, including heat pumps.

States and provinces also subsidize heat pumps, but tight budgets have led to substantial cutbacks. Washington scaled back funding for heat pump programs from $80 million in the 2023 budget cycle to $30 million in 2025. Oregon lawmakers appropriated $25 million to heat pump rebates in 2022 and added another $4 million in 2024, but allocated no new funds in 2025. British Columbia lowered its heat pump program budget from Can$150 million in 2024 to Can$50 million in 2025. (Idaho and Montana do not offer any state-funded heat pump rebates.)

Several utilities in the region chip in heat pump rebates of their own, though amounts tend to be modest. For example, Puget Sound Energy offers $3,900 rebates to low-income households, and Idaho Power offers $500.

Crucial as they a...