The group argued that the next phase of hydrogen market growth will be driven by individual state policies.

The shift comes amid a rollback of federal clean energy support after the first year of Donald Trump’s second term, which has seen flagship incentives shortened and funding for regional hydrogen hubs removed.

USHA said states that move fast to establish regulatory frameworks, permitting, and long-term policy signals will be best positioned to attract hydrogen investment.

“The next phase of hydrogen growth will not be driven solely by sizable federal initiatives,” the statement reads. “It will be built state by state, through durable, nonpartisan legislative and regulatory frameworks that can withstand national political cycles.”

The group argued hydrogen projects, which often involve development timelines that extend beyond election cycles, need more long-term clarity.

“State legislatures can provide stability to constituencies, corporations, and, yes, even to the hydrogen industry with policy certainty,” USHA said.

However, to date, state progress remains fragmented. While regions like California and Texas lead in real-world deployments, many others are still exploring what role hydrogen will play.

“Understanding these differences – and what they mean for deployment – is increasingly important for policymakers, industry, and communities alike.”

USHA, which started life as the regional, Western States Hydrogen Alliance, is developing a new “policy education resource” campaign to support state hydrogen policy readiness.