President Biden on Thursday will announce $7.3 billion in “clean energy” financing to spur electricity production for rural residents in nearly two dozen states.

The U.S. Department of Agriculture will distribute the money to 16 rural electric cooperatives serving 5 million entities, including households, businesses and schools.

“The impact of this investment cannot be overstated,” said Agriculture Secretary Tom Vilsack, who will join Mr. Biden in Westby, Wisconsin, for an event on the announcement.

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The financing stems from Mr. Biden’s tax-and-climate law, the Inflation Reduction Act of 2022, and will purportedly bolster energy production through wind, solar, hydropower and other sources. 

The money will also support transmission and substation upgrades and types of software that could help grids operate and lower costs.

“This financing will reduce electricity bills for rural families and businesses, who for too long have faced higher energy costs than the rest of the country due to the challenges of providing electricity in rural and remote areas,” the White House said in a fact sheet.

The newly funded projects will affect residents in Alaska, Arizona, California, Colorado, Florida, Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Montana, Nebraska, New Jersey, New Mexico, Nevada, North Dakota, Ohio, Pennsylvania, South Dakota, Texas, Wisconsin and Wyoming, according to the White House.

Mr. Biden is promoting the money as part of an “Investing in America” tour.

The president says his Bidenomics effort to expand the economy from the “bottom up and middle out” has worked for Americans, despite complaints about high costs and recent turmoil in the stock market.

Also, the tour is a tacit way to boost Vice President Kamala Harris’ presidential bid against former President Donald Trump.

Ms. Harris is running as a change-driven candidate while trying to tie herself to Mr. Biden’s economic achievement, which is risky.

Voters have given Mr. Biden poor marks for handling the economy during most of his presidency. His economic approval ratings have languished in the low 30% range since 2021 as inflation soars.

Ms. Harris’ dual message of taking credit for some of Mr. Biden’s economic policies while distancing herself from others is reflected in polls.

An ABC News/Washington Post/Ipsos poll released last month revealed that more voters trust Mr. Trump, the Republican nominee, to handle the economy than Ms. Harris. The poll also found that the public overwhelmingly thinks Ms. Harris has had limited influence on Mr. Biden’s economic policies, 64% to 33%.

• Jeff Mordock contributed to this report.