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Protesters outside the US House make a last stand against the GOP megabill

Shelley Feist, 61, of Washington, D.C., who was raised in North Dakota, protests outside the U.S. Capitol on Wednesday, July 2, 2025, as House Republicans try to pass the "big beautiful bill." Feist said she's worried about effects on rural hospitals as a result of Medicaid cuts because her parents, in their 80s, depend on rural health care in Minot, North Dakota. (Photo by Ashley Murray/States Newsroom)

Shelley Feist, 61, of Washington, D.C., who was raised in North Dakota, protests outside the U.S. Capitol on Wednesday, July 2, 2025, as House Republicans try to pass the "big beautiful bill." Feist said she's worried about effects on rural hospitals as a result of Medicaid cuts because her parents, in their 80s, depend on rural health care in Minot, North Dakota. (Photo by Ashley Murray/States Newsroom)

WASHINGTON — Protesters demonstrated against the “big beautiful bill” outside the U.S. Capitol Wednesday as House Republicans whipped votes to get the bill across the finish line and to President Donald Trump’s desk by a self-imposed July Fourth deadline.

Shelley Feist stood on Independence Avenue near the entrance to the House of Representatives holding signs above her head, one reading “Cruel Corrupt Cowards,” the other a Republican elephant with the word “Treason” written on it.

“I think they’re being cruel. I think cruelty is the point,” Feist, 61, of Washington, D.C., and originally from North Dakota, told States Newsroom. “It’s also extremely alarming that there’s such cowardice in the GOP.”

The massive budget reconciliation package, passed by Senate Republicans Tuesday with a tie-breaking vote by Vice President JD Vance, extends and expands 2017 tax cuts at a cost of roughly $4.5 trillion over the next decade. It also yanks funding from federal food and health safety net programs.

Joanna Pratt, 74, of Washington, D.C., protests outside the U.S. Capitol on Wednesday, July 2, 2025, as House Republicans try to put together enough votes to pass the "big beautiful bill" and send it to President Donald Trump before a self-imposed July Fourth deadline. (Photo by Ashley Murray/States Newsroom)
Joanna Pratt, 74, of Washington, D.C., protests outside the U.S. Capitol on Wednesday, July 2, 2025, as House Republicans try to put together enough votes to pass the “big beautiful bill” and send it to President Donald Trump before a self-imposed July Fourth deadline. (Photo by Ashley Murray/States Newsroom)

The bill aggressively rolls back clean energy tax credits, as well as raising the nation’s borrowing limit to $5 trillion.

Latest figures from the nonpartisan Congressional Budget Office show the package would add $3.4 trillion to the nation’s deficit over the next decade, when the country is mired in record-breaking debt. That office’s earlier analysis of the House-passed bill found the package would reduce resources for low-income families while padding higher earners.

Rep. Virginia Foxx of North Carolina, who chaired an hours-long final committee hearing about the bill overnight, said Wednesday the package is an “embodiment of the America First agenda and we would all do well to remember that.”

Medicaid cuts

Top of mind for Feist is the bill’s cuts to Medicaid, the federal-state health insurance program for low-income individuals and some with disabilities. The Senate version of the package, passed Tuesday, included a  $1 trillion cut to Medicaid over 10 years, according to the CBO.

“I have parents in North Dakota who are 85 and 86. They already have difficulty seeing their doctor. For every doctor that leaves, he takes on 14 times more burden. Rural health care is already extremely difficult. I would expect there will not be a hospital near where my parents live if this bill is signed into law,” said Feist, whose parents live near Minot.

Rural hospitals rely on Medicaid payments. In a last-minute move before Tuesday’s vote, Senate Republicans doubled a fund to $50 billion to subsidize hospitals that will lose funding. Critics say that amount is not enough to fill the gap.

GOP Sens. Susan Collins of Maine and Thom Tillis of North Carolina voted no after voicing concerns over Medicaid cuts.

Nadine Seiler, 60, of Waldorf, Maryland, stood near a press conference by the Congressional Hispanic Conference protesting the bill. Seiler held a large spray-painted sheet above her head with a message on each side: “Free America from Big Bad Bill” and “Coming Soon Freedom in Name Only.”

Nadine Seiler, 60, of Waldorf, Maryland, protested against the "big beautiful bill" outside the U.S. Capitol on Wednesday, July 2, 2025, as House Republicans were stalled in whipping enough votes for floor passage of the massive budget reconciliation bill. (Photo by Ashley Murray/States Newsroom)
Nadine Seiler, 60, of Waldorf, Maryland, protested against the “big beautiful bill” outside the U.S. Capitol on Wednesday, July 2, 2025, as House Republicans were stalled in whipping enough votes for floor passage of the massive budget reconciliation bill. (Photo by Ashley Murray/States Newsroom)

“I’m concerned about my fellow citizens who are going to be losing Medicaid, food stamps, human health services. People are going to die,” Seiler said.

“And I know Joni Ernst says that we all gonna die, but we gonna die faster and unnecessarily and I care about that.”

Seiler was referring to Sen. Ernst’s response to her Iowa constituents who expressed concern about Medicaid cuts at a town hall on May 30.

SNAP and ICE

Mark Starr sang a protest song he wrote about the “big beautiful bill” as he played guitar and harmonica outside the Longworth House Office Building Wednesday.

The 39-year-old Albuquerque, New Mexico, native told States Newsroom he drove to the capital in late April to begin protesting the bill. He said he’s particularly focused on additional funding for Immigration and Customs Enforcement contained in the package as well as cuts to the Supplemental Nutrition Assistance Program, or SNAP, which provides food benefits to low-income households.

Mark Starr, 39, of Albuquerque, New Mexico, sang an original protest song he wrote about the “big beautiful bill” as he demonstrated near the U.S. Capitol on Wednesday, July 2, 2025, as House Republicans whipped votes to pass the massive budget reconciliation package. (Video by Ashley Murray/States Newsroom)
 

“New Mexico is pretty poor, and so if these cuts to SNAP go, kids can go hungry in New Mexico,” Starr said. “It’s just, like, really gonna mess us up, and we’re just one of the many states that will be affected that way.”

New Mexico has one of the highest poverty rates in the nation.

A provision in the bill will shift food assistance costs to state governments for the first time in the federal program’s history. Critics worry that states could tighten eligibility requirements or drop the program because of the financial burden.

The left-leaning Center for Budget and Policy Priorities estimates 55,000 teens age 14 and up, and adults up to age 64 could lose food assistance in New Mexico because of the bill’s cuts to state work requirement waivers. Children would remain eligible but households would overall see significantly decreased SNAP dollars.

The CBO found in late May that the House-passed bill would result in over 3 million people nationwide losing food assistance.

Starr said he’s also against additional funding provided for immigration enforcement.

“I think they have enough,” he said, pointing to Trump’s visit to a new detention facility in Florida that the White House is touting as “Alligator Alcatraz.”

The Senate-approved version includes an additional $45 billion for ICE detention facilities and $29.9 billion for ICE enforcement and deportation, among billions more directed toward the Southern border.

Clean energy to take a hit

Tiernan Sittenfeld, of the League of Conservation Voters, huddled just outside the House with a group wearing t-shirts that read “Hands off our air, land and clean energy.”

Sittenfeld, the organization’s senior vice president of government affairs, argues the rollbacks of clean energy tax credits in the Senate version will “kill clean energy jobs.”

“It is bad for our economy. It’s bad for jobs. It’s going to raise people’s energy bills. And of course, it’s bad for the planet,” she said.

Senate Republicans accelerated the phase-out of some residential, manufacturing and production credits at a faster rate than the House bill. A last-minute change loosened the timeline on some tech-neutral energy credits though, and removed a previously added tax on wind and solar projects.

From left to right, Mahyar Sorour, Tiernan Sittenfeld, age 51, Anna Aurilio, 61, Davis Bates, 37, Elly Kosova, 29, Fransika Dale, 26, Francesca Governali, 30, and Craig Auster, 39, all based in Washington, D.C., protested the rollbacks to clean energy taxes contained in the "big beautiful bill," outside the U.S. Capitol on Wednesday, July 2, 2025, as Republicans votes on the massive budget reconciliation package. (Photo by Ashley Murray/States Newsroom)
From left to right, Mahyar Sorour, Tiernan Sittenfeld, age 51, Anna Aurilio, 61, Davis Bates, 37, Elly Kosova, 29, Fransika Dale, 26, Francesca Governali, 30, and Craig Auster, 39, all based in Washington, D.C., protested the rollbacks to clean energy taxes contained in the “big beautiful bill,” outside the U.S. Capitol on Wednesday, July 2, 2025, as Republicans votes on the massive budget reconciliation package. (Photo by Ashley Murray/States Newsroom)

Industry groups and energy companies small and large have warned early termination of the credits will have a major impact on growth.

The tax credits for solar, wind, batteries for energy storage, and electric vehicles, among others, were enacted under Democrats’ own 2022 budget reconciliation bill known as the “Inflation Reduction Act.”

The majority of investment in new clean energy manufacturing and production has been concentrated in rural states and states that elected Trump to his second term, according to data collected since 2022 by the Clean Investment Monitor, a joint project by the Rhodium Group and the Massachusetts Institute of Technology’s Center for Energy and Environmental Policy Research.

“Any Republican who votes for this legislation is voting against the interest of their constituents, voting to kill jobs in their district, voting to kill clean energy projects, voting to make their constituents’ energy bills go up,” Sittenfeld said.

Far-right House members who as of Wednesday afternoon were withholding their votes maintain the rollbacks on the clean energy tax cuts, which they’ve dubbed the “green new scam,” do not go far enough.

US House GOP struggles to advance megabill against Freedom Caucus resistance

Speaker of the House Mike Johnson, R-La., talks with reporters before heading to the House chamber for a procedural vote on the "One, Big, Beautiful Bill Act" at the U.S. Capitol on July 2, 2025 in Washington, D.C.  (Photo by Chip Somodevilla/Getty Images)

Speaker of the House Mike Johnson, R-La., talks with reporters before heading to the House chamber for a procedural vote on the "One, Big, Beautiful Bill Act" at the U.S. Capitol on July 2, 2025 in Washington, D.C.  (Photo by Chip Somodevilla/Getty Images)

This report has been updated.

WASHINGTON —  U.S. House Republican efforts to pass the “big, beautiful bill” hit a roadblock Wednesday, when leaders left the chamber in a holding pattern for more than seven hours before calling a procedural vote that stalled amid opposition from hard-right members and others.

The House must adopt the rule in order to set up floor debate and a final passage vote for the tax break and spending cut package. But with four Republicans voting against it and nine withholding their votes, the House remained at a standstill around 11 p.m. Eastern.

GOP Reps. Andrew Clyde of Georgia, Brian Fitzpatrick of Pennsylvania, Keith Self of Texas and Victoria Spartz of Indiana had cast votes against approving the rule, though they could flip since leadership hadn’t closed the vote. Freedom Caucus Chairman Andy Harris of Maryland was among the members withholding their votes in protest.

Far-right members of the House GOP objected strongly to the Senate version passed Tuesday, which reflected changes made during the past month compared to an earlier version passed in the House. Members of the House Freedom Caucus opposed provisions dealing with immigration and the repeal of clean energy tax credits, as well as the measure’s increase in the deficit.

The nonpartisan Congressional Budget Office released an analysis after the Senate voted, showing the bill would increase deficits by $3.4 trillion during the next decade compared to current law.

‘We can’t make everyone 100% happy’

Speaker Mike Johnson, R-La., said earlier in the day he felt ​​”very positive about the progress” made during ongoing negotiations, but didn’t commit to having the necessary votes.

“The thing about it is, when you have a piece of legislation that is this comprehensive and with so many agenda items involved, you’re going to have lots of different priorities and preferences among people because they represent different districts and they have different interests,” Johnson said. “But we can’t make everyone 100% happy. It’s impossible.”

Johnson said he would never ask lawmakers to “compromise core principles, but preferences must be yielded for the greater good.”

South Dakota Republican Rep. Dusty Johnson told reporters before the delay that “the rule going down would be a very unfortunate development.”

But he expressed confidence in Speaker Johnson’s ability to bring holdouts on board eventually, potentially by making commitments tied to future bills.

“Speaker Johnson has not made any promises. He has been really good about talking about legislative vehicles that will exist in the months to come,” Dusty Johnson said. “Reconciliation is not the only tool in the Republican, or I should say in the congressional toolbox. Mike Johnson’s done a good job of making people understand there are other ways we can get things done.”

Texas Republican Rep. Chip Roy said a few hours before the rule vote began that holdouts were “exploring all of the options legislatively and through the executive.”

“We were not happy with what the Senate produced,” Roy said. “We thought there was a path forward as of late last week, even though I had concerns. I’ve been public about them. But then they jammed it through at the last minute in a way that we’re not overly excited about.”

Roy said that “everything is on the table at the moment,” when asked by States Newsroom if he hoped to get concessions from leaders on this package or deals struck for future bills.

Trump presses House GOP

Several House GOP lawmakers traveled to the White House earlier in the day to meet with President Donald Trump, who was also attempting to assuage concerns through several social media posts.

“It looks like the House is ready to vote tonight,’ Trump posted minutes before the rule vote began. “We had GREAT conversations all day, and the Republican House Majority is UNITED, for the Good of our Country, delivering the Biggest Tax Cuts in History and MASSIVE Growth. Let’s go Republicans, and everyone else – MAKE AMERICA GREAT AGAIN!”

House Rules Chairwoman Virginia Foxx, R-N.C., urged support for approving the rule during floor debate, arguing it was essential for GOP lawmakers to deliver on campaign promises.

“This legislation is the embodiment of the America First agenda and we would all do well to remember that,” Foxx said. “Failure at this critical juncture is not an option. This clock is ticking, the president and the American people are waiting. ”

Massachusetts Democratic Rep. Jim McGovern, ranking member on the panel, railed against the dozens of provisions Senate Republicans bundled together in the 870-page package, including some added just Tuesday.

“This process — an abomination, legislative malpractice,” McGovern said. “Final text of this bill came out less than 24 hours ago. We met in committee an hour after it was posted and now we’re here considering a rule that only allows for one hour of debate.

“This bill is within the jurisdiction of 12 different committees. One hour is ridiculous. And every minute we’re finding out new things that were snuck into the bill: a tax cut for whalers and now we’re learning about a gambling tax.”

Tax cuts favor higher incomes

The bill — which underwent weeks of revisions in the Senate after a prior version barely passed the House in May — will extend and expand the 2017 GOP tax law while overhauling several safety-net programs and slashing spending on Medicaid.

Those tax cuts skew toward wealthier income earners. The top 1% would receive a cut three times the size of those with incomes in the bottom 60% of after-tax income, according to analysis from the left-leaning Center on Budget and Policy Priorities. It also makes permanent some tax breaks on business investments and research and development costs.

The package makes substantial changes to Medicaid, including requiring some people on the program to work, participate in community service, or attend an educational program for at least 80 hours a month.

It will block any Medicaid funding from going to Planned Parenthood for one year, essentially requiring enrollees to find other health care options for routine appointments such as cancer screenings, birth control and sexually transmitted infections treatment and screening. Using federal taxpayer dollars for abortion coverage has been restricted for decades, with limited exceptions.

The legislation requires state governments to pay for a portion of the Supplemental Nutrition Assistance Program for the first time if they cannot get error payment rates under a certain percentage. SNAP is the primary federal nutrition program that feeds low-income people and roughly 42 million rely on it.

It bolsters spending on border security and defense by hundreds of billions of dollars, including line items for the “golden dome” missile defense system and additional barriers along the southern border.

The measure would provide a substantial funding increase to federal immigration enforcement for detention and removal of people without permanent legal status, aiding the president in carrying out his campaign promise of mass deportations.

The bill would raise the debt limit by $5 trillion, a figure designed to get Congress past next year’s midterm elections before the country would once again bump up against the borrowing limit.

Protesters milled about and held signs on street corners outside the U.S. Capitol as Republicans worked to pass the megabill. Several spoke out against cuts to Medicaid and SNAP, as well as rollbacks to clean energy tax credits contained in the budget reconciliation package.

Senate turmoil

The House voted 215-214 mostly along party lines to approve the first version of the package in late May.

Senate Republicans spent much of the last month reading through that, trying to determine what proposals their members supported and which elements would need to come out to comply with the strict rules that go along with writing a budget reconciliation bill.

The parliamentarian, that chamber’s referee, continued to issue rulings on whether various policies in the legislation were in bounds for days before the Senate officially began debating the measure and even after they launched into vote-a-rama Monday morning.

That “Byrd bath” process eventually wrapped up, allowing Senate GOP leaders to release updated text of the package shortly before the chamber took its final vote.

Even with near-constant negotiations among Senate Republicans, Senate Majority Leader John Thune, R-S.D., was unable to get everyone on board.

3 Senate Republicans voted no

Maine Sen. Susan Collins, Kentucky Sen. Rand Paul and North Carolina Sen. Thom Tillis opposed the measure, which the Senate approved on Tuesday with Vice President JD Vance casting the tie-breaking vote.

Collins wrote in a statement that while she supported “extending the tax relief for families and small businesses,” her opposition to the legislation “stems primarily from the harmful impact it will have on Medicaid, affecting low-income families and rural health care providers like our hospitals and nursing homes.”

Collins also cited “additional problems” with how the legislation addressed tax credits for certain forms of energy production, which she wrote “should have been gradually phased out so as not to waste the work that has already been put into these innovative new projects and prevent them from being completed.”

Tills spoke about his opposition to the bill’s changes to Medicaid during a floor speech before the Senate’s vote, arguing its cuts to spending to the state-federal health program for low-income people and some people with disabilities weren’t in the best interest of GOP voters.

“I’m telling the president that you have been misinformed,” Tillis said. “You supporting the Senate mark will hurt people who are eligible and qualified for Medicaid.”

Tillis said he supports a policy change in the bill that would require people on Medicaid to work, participate in community service, or attend an educational program. But he was critical of other changes implemented by his Senate colleagues, and announced he won’t seek reelection hours after voting against advancing the package.

“I love the work requirement. I love the other reforms in this bill. They are necessary and I appreciate the leadership of the House for putting it in there,” Tillis said. “In fact, I like the work of the House so much that I wouldn’t be having to do this speech if we simply started with the House mark.”

Paul said he decided to vote against the legislation because it will increase federal deficits during the next few years. 

“To me the most pertinent question is, how will the bill affect the deficit in the next year?” Paul said. “Currently our deficit is estimated to be a little under $2 trillion this year. What will happen to the (deficit) in 2026 if this bill passes? Well, using the math most favorable to the supporters of the bill, referred to as the policy baseline, the deficit in 2026 will still be $270 billion more than this year.”

Paul added “that’s just not good if you profess to be fiscally conservative.”

‘Sanctuary city’ governors object to Trump deployment of troops into Los Angeles

Left to right, Minnesota Gov. Tim Walz, Illinois Gov. J.B. Pritzker and New York Gov. Kathy Hochul are sworn in before the start of a hearing with the House Oversight and Government Reform Committee at the U.S. Capitol on June 12, 2025 in Washington, D.C.  (Photo by Anna Moneymaker/Getty Images)

Left to right, Minnesota Gov. Tim Walz, Illinois Gov. J.B. Pritzker and New York Gov. Kathy Hochul are sworn in before the start of a hearing with the House Oversight and Government Reform Committee at the U.S. Capitol on June 12, 2025 in Washington, D.C.  (Photo by Anna Moneymaker/Getty Images)

WASHINGTON — Three Democratic governors from states that leave immigration enforcement to the federal government said Thursday they oppose President Donald Trump’s decision to send more than 4,000 National Guard troops and 700 Marines into Los Angeles without the consent of California Gov. Gavin Newsom.

The lengthy and tense U.S. House hearing where the trio appeared — highlighted by a shouting match among members and accusations of Nazi tactics — came as the nation’s capital prepared for a major military parade and Trump’s birthday Saturday, along with thousands of “No Kings” protests across the country.

In Los Angeles, a U.S. senator was tackled and removed from an immigration press conference by federal law enforcement agents accompanying Homeland Security Secretary Kristi Noem.

The governors, whose states have submitted an amicus brief to a lawsuit by Newsom challenging Trump, said the decisions to bring in the military should be made by local officials.

“It’s wrong to deploy the National Guard and active-duty Marines into an American city over the objection of local law enforcement, just to inflame a situation and create a crisis, just as it’s wrong to tear children away from their homes and their mothers and fathers, who have spent decades living and working in our communities, raising their families,” Democratic Gov. J.B. Pritzker of Illinois told members of the House Oversight and Government Reform committee.

The hearing with Govs. Pritzker, Tim Walz of Minnesota and Kathy Hochul of New York marked the second time House Republicans have called in leaders in blue states that have policies of non-cooperation with federal immigration officials in enforcement efforts. Those policies do not bar immigration enforcement from occurring.

Republicans brought in the mayors of Boston, Chicago and Denver in March.

The eight-hour hearing came after multi-day protests in Los Angeles sparked when U.S. Immigration and Customs Enforcement officers began widespread immigration raids at Home Depots in their communities in an effort to carry out the president’s mass deportation efforts.

The governors stressed that the president’s decision to send in the National Guard set a dangerous precedent and posed a threat to democracy.

Republicans on the committee defended the president’s actions and instead accused the governors of violating federal law because of their state policies, dubbed as “sanctuary cities.” Immigration policy is handled by the federal government and states and localities are not required to coordinate with officials.

Shouting match over Noem

More than four hours into the hearing, video circulated of California Democratic Sen. Alex Padilla being forcibly removed and handcuffed by Secret Service agents while trying to ask a question of Noem during a press conference in LA.

Democrats on the panel, such as Arizona Democratic Rep. Yassamin Ansari, slammed the video and raised concerns that a “sitting senator was shoved to the ground.”

It led to a shouting match, with Florida Democratic Rep. Maxwell Alejandro Frost asking the chair of the panel, James Comer of Kentucky, if the committee would subpoena Noem.

Comer said Frost was out of order and tried to move on.

Georgia Rep. Marjorie Taylor Greene, who was next in line for questioning, heckled Frost and said that Democrats “can’t follow the rules.” Comer eventually told Frost to “shut up.”

Pritzker said that he could not “believe the disrespect that was shown to a United States senator” who was trying to ask Noem a question.

“That seems completely irrational,” Pritzker said.

Democrats on the panel such as Illinois Rep. Delia Ramirez and Dan Goldman of New York called for Noem to appear before the committee.

“Anyone with two eyes that can see, can see that was authoritarian, lawless behavior that no person in America, much less a senator conducting congressional oversight, should receive,” Goldman said.

‘People are living in fear’

The Democratic governors defended their immigration policies and criticized the Trump administration’s aggressive immigration crackdown, pointing to ICE officers wearing face coverings to arrest immigrants.

“People are living in fear in the shadows,” Hochul said. “People can’t go to school, they can’t worship, they can’t go get health care. They can’t go to their senior center. What is happening has been traumatic.”

Several Republicans including Reps. Comer, Tom Emmer of Minnesota and Scott Perry of Pennsylvania, took issue with comments by Walz at a commencement speech in May, in which he accused the president of turning ICE agents into a modern-day Gestapo, the official secret police of Nazi Germany.

Republican Rep. Eric Burlison of Missouri said that Walz should apologize.

Walz said that as a former history teacher, he was making an observation about ICE tactics — such as wearing a face covering to arrest people — that were similar to those used by secret police.

The top Democrat on the panel, Stephen Lynch of Massachusetts, defended Walz’s statement, and said that ICE is operating like a modern-day Gestapo.

Lynch pointed to the video of the international Tufts University student who was approached by masked men on the street and taken into a van for writing an op-ed in defense of Palestinian human rights.  

“ICE agents wearing masks and hoodies detained Rümeysa Öztürk and those of you who watched that, that abduction, when you compare the old films of the Gestapo grabbing people off the streets of Poland, and you compare them to those nondescript thugs who grabbed that student, that graduate student, it does look like a Gestapo operation,” Lynch said.

 

Small business owners from rural America urge Congress to keep clean energy tax credits

From left to right, Chase Christie, development director for Alaska Solar LLC, Josh Craft, managing partner of Wasilla, Alaska-based Crafty Energy LLC, and Josh Shipley, owner of Alternative Power Enterprises in Ridgeway, Colorado, at the Holiday Inn Express on C Street SW in Washington, D.C., on Wednesday, June 11, 2025, after meeting with staff of U.S. senators about preserving clean energy tax credits in the Republican budget reconciliation bill. (Ashley Murray/States Newsroom)

From left to right, Chase Christie, development director for Alaska Solar LLC, Josh Craft, managing partner of Wasilla, Alaska-based Crafty Energy LLC, and Josh Shipley, owner of Alternative Power Enterprises in Ridgeway, Colorado, at the Holiday Inn Express on C Street SW in Washington, D.C., on Wednesday, June 11, 2025, after meeting with staff of U.S. senators about preserving clean energy tax credits in the Republican budget reconciliation bill. (Ashley Murray/States Newsroom)

WASHINGTON — Small business owners and community leaders from rural regions in Western states including Alaska, Colorado, Iowa, Montana, Nebraska, South Dakota and Utah pressed lawmakers on Capitol Hill this week to preserve clean energy tax credits on the chopping block in the Republicans’ “one big beautiful” mega-bill, now in the Senate.

The suite of investment, production and residential tax credits enacted and expanded under the Democrats’ own big budget reconciliation bill in 2022, titled the “Inflation Reduction Act,” incentivized homeowners, car buyers, energy producers and manufacturers to invest in types of energy beyond fossil fuels, with the aim of reducing the effects of climate change.

The credits have spurred hundreds of billions in investment dollars in advanced manufacturing and production since 2022, and contributed to job creation, largely in states that elected President Donald Trump to a second term.

Small business operators and community leaders from rural and mountainous areas of the United States that have benefited from the boom in alternative energy sources say the campaign to end the tax credits will also cause job losses and cut options for consumers.

Solar projects in Alaska

Chase Christie, director of development for Alaska Solar LLC, said his company installs four to five large-scale solar projects per year in remote Alaskan villages and also fits and services smaller residential solar installations.

“They take a lot of planning, a lot of logistics,” Christie told States Newsroom in an interview Wednesday.

“For going into a remote village where there’s tundra, we might need to go there in the dead of winter so we can work on frozen ground,” he added. “Other places we won’t go until summer. So we have these large gaps in between these larger projects, and a company like ours absolutely relies on the residential installations to keep our workforce going.”

Christie, who met Tuesday with staffers for Alaska’s Republican Sens. Lisa Murkowski and Dan Sullivan, said in January he let a handful of workers go and paused most new hiring.

“Our workforce is roughly half of what it usually is just because we’re not sure which direction things are going to go,” he said.

Christie was among a dozen small energy business owners, municipal government officials and nonprofit employees focused on energy options for low-income households who States Newsroom spoke to Wednesday.

A spokesperson for Sullivan said in a statement: “Senator Sullivan supports energy projects that lower costs for Alaska. The Senator and his team have been meeting with a number of Alaskans about energy tax credits. As we wait for text from the Senate Finance Committee, the Senator is working with his colleagues to ensure that the bill strikes the right balance between promoting stable and predictable tax policy, advancing projects that benefit Alaska, and addressing the need to reduce the federal deficit.”

Murkowski’s office did not immediately respond to a request for comment.

Elimination of tax credits

Senators are hashing out language for the massive Republican agenda bill that will extend and expand the 2017 tax law, costing roughly $3.8 trillion, and cut spending in other areas to offset the price tag.

A contingent of House Republicans, who have dubbed the tax credits the “green new scam,” won on accelerating the expiration of the energy tax credits and tightening restrictions on eligibility as a way to pay for individual and corporate tax cuts that Trump campaigned on.

The language in a section of the House bill, passed 215-214 on May 22, titled “Working Families Over Elites,” terminates the Energy Efficient Home Improvement Tax Credit, worth up to $3,200 for homeowners who make energy upgrades to their property.

Among the slate of other affected IRA tax credits, the House bill also speeds up the expiration of the Clean Electricity Investment Tax Credit, a credit dating back decades that was updated in 2022.

The credit is available to taxpayers who invest in “energy property,” including solar installations to provide electricity and heat, fuel cells, small wind turbines, geothermal pumps, and other electricity-producing technologies. 

House Republicans wrote provisions to eliminate the credit for facilities placed into service after 2028 and end eligibility for projects that don’t begin construction within 60 days of the bill’s enactment.

The credit is worth up to 30% of the cost of the project, plus two bonus credits up to 10% each if the project includes mostly domestically produced material and if it’s located in an “energy community,” meaning a place where a coal plant has closed or where unemployment reaches a certain threshold.

The bill also repeals a taxpayer’s ability to transfer the tax credits as a way to finance a project, and introduces restrictions on foreign-made components that industry professionals say essentially makes the credit unworkable.

Critics point to the cost of the tax credits.

The nonpartisan Committee for a Responsible Federal Budget estimated, as of June 4, the elimination of the clean energy investment and production tax credits will save roughly $249 billion over the next decade.

Alex Muresianu, senior policy analyst at the Tax Foundation, a right-of-center think tank that advocates for lower taxes, said Thursday in a new analysis that “The final House bill makes impressive cuts to the IRA green energy tax credits, but it does so in part by introducing more complexity.”

The group is advocating for senators to reduce the tax credit rates and make clearer complicated language, like the provision around “foreign entities of concern.”

Keeping on the heat during a Montana winter

But Logan Smith, weatherization program manager for the Human Resource Development Council in central Montana, argues the credits have been a lifeline for lower-income rural residents.

“If I can get solar panels on each of the clients’ homes, that means that their power is going to stay on in the middle of winter,” Smith said. “Because every winter we plan for losing power for about a week, that’s just something we grew up with. … But if we have solar panels, the power stays on, the heat stays on.”

Ralph Waters, owner of SBS Solar in Missoula, Montana, became emotional when talking about how an early termination of the tax credits could slow his business and result in having to lay off half his workforce.

He criticized the politicization of the tax incentives.

“Montana is deeply red, but it’s also a very practical place. And so green energy renewables becomes a taboo phrase somehow,” Waters said. “The practical energy needs are undeniable, and so if we can get past our disagreements about the phraseology and realize that it’s electrons, watts, and amps. And it’s cheaper.”

The offices of Montana GOP Sens. Steve Daines and Tim Sheehy did not respond to a request for comment.

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