The U.S. Capitol on June 30, 2025. (Photo by Ashley Murray/States Newsroom)
WASHINGTON — The final “big beautiful bill” approved by Senate Republicans Tuesday included some last-minute changes on hot-button issues such as safety net programs and clean energy tax credits.
Senate Republicans had wrangled for weeks to deliver legislative text to satisfy concerns from lawmakers who objected to cutting Medicaid, the federal-state insurance program for low-income families and some individuals with disabilities.
Other sticking points included threats that the health cuts pose to rural hospitals, and tax revisions that hamper clean energy jobs and investment, most of which are in states that elected President Donald Trump to his second term.
The lawmakers debated amendments for more than 24 hours. Even with final changes, now under consideration in the House, three Republicans held out: Susan Collins of Maine, Thom Tillis of North Carolina and Rand Paul of Kentucky. Vice President JD Vance cast the tie breaking vote.
Here are several rewrites that popped up in the bill’s final minutes and hours:
Rural hospital fund
Senate Republicans doubled the amount for a rural health “transformation program,” or money to compensate rural hospitals for the funds they would lose as a result of the proposed Medicaid cuts.
The latest proposal sets aside $50 billion, up from $25 billion, and moves up the distribution timeline to begin in 2026, up from 2028.
Collins had unsuccessfully introduced an amendment to bump the fund to $50 billion. Despite some support from GOP colleagues, the amendment was blunted by a technical budget point of order.
The Maine Republican still voted “no” Tuesday on the final bill.
SNAP
The lawmakers also made a late change to how and when states would begin to shoulder the responsibility for costs of the Supplemental Nutrition Assistance Program.
According to the new version, if a state’s payment error rate in 2025 multiplied by 1.5 is equal or greater than 20%, then that state would be permitted to wait until 2029, rather than 2028, to begin footing a portion of the bill for food assistance. A state’s accuracy rate is the annual measurement of over- or underpayments to recipients.
Nine states would hover in the territory of meeting that threshold, according to the Department of Agriculture’s latest error rates published Monday. They are: Alaska, Florida, Georgia, Maryland, Massachusetts, New Jersey, New Mexico, New York and Oregon.
Alaska had the highest payment error rate of all states in both 2023 and 2024. Alaska Sen. Lisa Murkowski’s final decision on the bill was largely unknown until she cast a “yes” vote Tuesday.
A late amendment to strike the language offered by Amy Klobuchar of Minnesota failed 45-55.
Critics say the measure incentivizes states to keep the payment error rates high this year.
Solar energy
GOP senators late Friday added a clean energy excise tax into the bill, taking the industry by surprise. Then it vanished.
The tax that would have been imposed on new solar and wind projects was no longer in the legislation that senators voted on around noon Eastern Tuesday.
Other text loosened a squeeze on tech-neutral tax credits meant to incentivize the installation of energy systems that do not use fossil fuels. Senate Republicans added a year of leeway for new projects to break ground and avoid cutting short two of the tax credits.
The U.S. Senate is currently working on its version of the so-called “One Big Beautiful Bill Act”—a deeply misleading attempt to dismantle the Inflation Reduction Act (IRA) and derail America’s clean energy future.
Let’s be clear: This isn’t just political posturing. This bill, backed by fossil fuel interests and already passed in the House, would strip away the very tools Wisconsin families, businesses, farmers and communities are using to lower energy costs, create jobs and build a more resilient future. The damage to our state would be both immediate and long-term.
In Wisconsin alone, 82 clean energy projects are currently in the pipeline. These projects represent not just thousands of jobs and billions in investment — they’re the backbone of a 21st-century economy. From wind turbine manufacturing in Milwaukee’s Menomonee Valley to solar installations in rural communities, Wisconsinites are hard at work powering our future.
If the “Big, Broken Bill” becomes law, it threatens to cancel or delay many of these efforts. Clean energy tax credits would vanish. The Solar for All program and clean manufacturing investments would be eliminated. Tax incentives for electric vehicles, energy-efficient buildings, and sustainable agriculture would be repealed. These aren’t just policy tools — they’re direct investments in our people, places and potential. Many Wisconsin communities have used these credits to launch local projects that reduce taxpayer dollars through direct pay for solar, geothermal and clean vehicles.
And we can’t afford to go backward. Energy demand is skyrocketing — especially with the rapid expansion of AI and data centers. Experts warn electricity bills could jump by 70% in the next five years if we don’t act. Clean, renewable energy remains the cheapest and fastest option to deploy. Gutting these investments would lead to higher prices, more power interruptions and less energy reliability — leaving Wisconsin families and businesses to bear the cost.
Without these programs, household energy costs could rise by up to $400 a year. That’s a hidden tax hike on working families — piled on top of rising costs from tariffs and supply chain disruptions already straining our economy.
Even worse, the bill guts EPA pollution standards and allows major polluters to sidestep environmental compliance. It’s a taxpayer-funded giveaway to fossil fuel interests, trading our health, air and water for short-term corporate profits.
Let’s not forget Wisconsin’s farmers, who were just beginning to benefit from billions in IRA investments for conservation, renewable energy and carbon-smart agriculture. With grant contracts abruptly canceled, many family farms are left holding the bag, having made plans in good faith only to be blindsided.
We can do better. Wisconsin has the talent, tools and environmental leadership tradition to lead the clean energy economy. Clean energy already supports more than 71,000 jobs in our state. With the right investments, we could add 34,000 more and grow our economy by $21 billion by 2050.
We’re also home to over 350 clean energy supply chain companies. With support from IRA tax credits and the Wisconsin Economic Development Corporation (WEDC), we can expand local manufacturing of batteries, solar panels, wind components, EV systems and smart grid technology — positioning Wisconsin as a national clean energy hub.
This is the kind of forward-thinking, common-sense investment we need. It creates good jobs, lowers energy bills, strengthens supply chains and revitalizes communities.
The Senate still has time to act. Let’s urge our lawmakers, regardless of party, to reject this harmful bill and stand with the workers, innovators and families building a cleaner, stronger Wisconsin. Our policies should reflect our shared values of fairness, innovation, resilience and stewardship — not special treatment for polluters.
This isn’t about partisan politics. It’s about economic survival, energy independence and the future we want to leave our children.
It’s time to move forward, not backward, with a smarter stronger, and more sustainable Wisconsin.
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.
A worker installs a solar panel on a roof. (Getty Images)
WASHINGTON — Clean energy manufacturers and advocates say they’re perplexed how the repeal of tax credits in President Donald Trump’s “one big beautiful bill” will keep their domestic production lines humming across the United States, particularly in states that elected him to the Oval Office.
While some Republicans have labeled the billions in tax credits a “green new scam,” statistics reviewed by States Newsroom show the jobs and benefits would boost predominantly GOP-leaning states and congressional districts. Now the industry is already slowing amid Trump’s back-and-forth tariff policy and mixed messaging on energy and manufacturing.
Trump vowed in early April that he would “supercharge our domestic industrial base.”
“Jobs and factories will come roaring back to our country, and you see it happening already,” he told a crowd in the White House Rose Garden while unveiling his new trade policy.
But as a way to pay for the $3.9 trillion price tag of extending and expanding the 2017 corporate and individual tax cuts, U.S. House Republicans found billions of dollars in savings by slashing over a dozen clean energy tax credits enacted in the 2022 Inflation Reduction Act under President Joe Biden.
Critics say the mega-bill, which passed the GOP-led House on May 22 in a 215-214 vote, would effectively strip away the Advanced Manufacturing and Production Credit and other incentives.
They have bolstered the production of batteries and solar components in numerous states — top among them North Carolina, Georgia, Michigan, South Carolina, Indiana, Tennessee, Texas, Nevada, Illinois and Oklahoma, according to 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.
U.S. senators are now negotiating the massive budget reconciliation legislation.
Kevin Doffling, CEO and founder of Project Vanguard, an organization that connects veterans to clean energy jobs, warned pulling the plug on the clean energy tax credits will stifle progress the U.S. has made against other countries, namely China.
“We’re just going to see a huge pullback from investments inside of advanced manufacturing here in the U.S., and then we’ll go source it from other places, instead of doing it here,” Doffling said on a May 28 press call pressing for senators to protect the tax credits.
Doffling’s organization works in several states, including Arizona, Colorado, Indiana, Minnesota, Washington and Utah.
Moving away from fossil fuels
The suite of tax credits enacted under the IRA incentivized homeowners, car buyers, energy producers and manufacturers to invest in types of energy beyond fossil fuels, with the aim of a reduction in the effects of climate change.
For example, the IRA’s Advanced Manufacturing and Production Credit is awarded per unit produced and sold, and in some cases the capacity of energy output.
Battery cell manufacturers can earn up to $35 per battery cell multiplied by potential kilowatt hours. In the case of solar, the credit offers producers 7 cents per solar module multiplied by wattage output. For mining operations extracting critical minerals, such as lithium, companies can receive a 10% tax break on the costs of production.
Most credits phase out by 2032 under the Biden-era law, except those for critical mineral mining, which continue.
A group of House Republicans, who have dubbed the tax credits the “green new scam” — echoing Trump’s rhetoric — pushed to accelerate the expiration in the final version of the mega-bill, even for critical mineral mining and production. The federal government classifies critical minerals as crucial to national security.
The House-passed bill also severely tightens language around foreign components, titled “foreign entities of concern,” making the credit practically unusable as many parts of the clean energy manufacturing supply chain are global, industry professionals say.
The legislation also repeals “transferability,” which allows companies with little or no tax liability to sell the credits.
For example, a critical mineral mining company would not turn a profit during an initial phase and could sell the credits to offset the cost of operations.
Schneider Electric, a global corporation with a U.S. base in Massachusetts, has facilitated 18 transfer deals worth $1.7 billion in tax credits for U.S. companies since 2023. In a statement, Schneider said the deals “reflect growing market interest in flexible financing mechanisms that directly fund renewable projects.”
Silfab Solar, which recently built a solar cell manufacturing and module assembly plant in Fort Mill, South Carolina, announced in mid-May the sale of $110 million in Advanced Manufacturing and Production Credits to help fund its expansion. The company already runs a solar manufacturing site in Burlington, Washington.
Investment soared
Spurred by the Advanced Manufacturing and Production Credit, known as 45X, actual investment in clean energy manufacturing since August 2022 reached $115 billion in April, up from $21 billion over the same length of time prior to the IRA, the Clean Investment Monitor found.
Of the 380 clean technology production facilities announced since the third quarter of 2022, 161 are now operational, according to CIM data.
The credit spurred a “sea change” in U.S. clean energy manufacturing, said Mike Williams, senior fellow at the liberal Center for American Progress and former deputy director of the BlueGreen Alliance, which advocates for the joining of labor and environmental organizations.
Despite solar technology’s roots in the U.S., the nation “didn’t even have a toe” in solar manufacturing, Williams said. Other countries, most notably Germany and then China, have dominated the industry.
“But after the Inflation Reduction Act passed, all of a sudden we see panel manufacturing, we see parts and components manufacturing, absolutely exploding. Plants have announced and started construction in Georgia, in Oklahoma,” Williams said in an interview with States Newsroom.
Active manufacturing of solar components, advanced batteries and wind turbines and vessels is concentrated in rural areas. Most are located in states that went red in the 2024 presidential election, according to the Clean Power America Association’s May 2025 State of Clean Energy Manufacturing in America report.
The renewable energy policy group estimated the industry supports 122,000 full-time manufacturing jobs across the U.S.
Active solar manufacturing sites and expansions are clustered in Texas, Ohio and Alabama, according to data from the association. Should major project announcements in Georgia pull through, the state would surpass Alabama for third place.
Advanced battery manufacturing spans 38 states, with the largest concentrations in California, Michigan and North Carolina.
But various parts of the battery production process stretch throughout the country — for example, battery cell production in Nevada and Tennessee and module production in Utah. Other supporting hardware is made in South Carolina, Arizona and Texas.
Lithium, a critical mineral for battery production, is currently mined in Nevada and California. And investors are eyeing other spots in the U.S., namely Alaska, to mine and produce graphite, another critical mineral.
China largely dominates the world’s critical mineral supply chain, according to U.S. Geological Survey data for 2024.
When accounting for the full suite of clean energy tax credits that were enacted in 2022 — including residential, electric vehicles and clean electricity credits — just over 312,900 new jobs are linked to the industry, the bulk in Republican-led congressional districts, according to the advocacy group Climate Power’s 2024 report on clean energy employment.
Troy Van Beek, CEO and founder of the Iowa-based solar company Ideal Energy, said his business weathered the pandemic and has been able to add jobs, but is now facing uncertainty again.
“We’re getting our feet under us and really starting to operate. I went from 20-some jobs to over 60 jobs, and those are good-paying jobs for people and their families. So we need that stability in the industry,” said Van Beek, who spoke on the call with Doffling.
“What troubles me is the rocking of the boat to such a degree that we can’t get anything done, and that’s been very difficult to deal with,” he said.
Industry slowdown
The industry has seen a pullback since January and the beginning of the Trump presidency.
Six announced projects representing $6.9 billion in investment were canceled in the first quarter of 2025, according to the Clean Investment Monitor’s latest State of U.S. Clean Energy Supply Chains report. While investment in clean energy overall continues to grow, the beginning of 2025 shows a slowdown from where the industry was a year ago.
Van Beek, whose solar company provides construction and installation among others services, said recent talks to strike a deal with a solar manufacturer collapsed after threats to the tax credits.
“We had worked an entire year on putting together (a deal) with one of the leading manufacturers in the world that has U.S. manufacturing to actually have joint ventures and work with them on projects,” Van Beek said. “And when this came up, that deal came to a screeching halt.”
Van Beek did not name the company on the call and did not respond to a request for a follow-up interview.
Spencer Pederson of the National Electrical Manufacturers Association said the unpredictability is interrupting how operators are planning for the coming years.
“Whether large or small, just the business certainty and the ability to plan out your business is disrupted when you have any type of tax mechanism that is abruptly halted when you’re doing business planning at five- or 10-year intervals,” said Pederson, the association’s senior vice president of public affairs.
Too expensive, Republicans say
Some House Republicans, led by Rep. Jen Kiggans of Virginia, urged party colleagues to protect the clean energy tax credits — for example by removing the “overly prescriptive” restrictions on foreign entities of concern and keeping in place transferability of tax credits.
Kiggans wrote to House Republican tax writers in mid-May that “the last thing any of us want is to provoke an energy crisis or cause higher energy bills for working families.”
Her co-signers included Don Bacon of Nebraska, Mark Amodei of Nevada, Rob Bresnahan of Pennsylvania, Juan Ciscomani of Arizona, Gabe Evans and Jeff Hurd of Colorado, Dave Joyce of Ohio and Dan Newhouse of Washington, who all eventually voted for the final bill.
Far-right House members won on not only shortening the lifespan of the credits, but also on keeping the restrictive foreign entity language and on repealing a company’s ability to transfer credits.
The right-leaning National Taxpayers Union hailed the “commonsense changes” championed by the far-right House Freedom Caucus, under the leadership of Maryland Rep. Andy Harris.
The organization, which favors cutting government spending and lowering taxes, pointed to the cost. According to the Penn Wharton Budget Model, the credits as of 2022 were valued at roughly $384.9 billion over ten years.
“The longer these subsidies remain in law, the more expensive they will become and the harder it will be for Congress to remove them. Now it’s up to the Senate to support the Green New Deal Rollbacks,” Thomas Aiello, NTU’s senior director of government affairs, wrote in the days following the House vote.
Hope in the Senate?
But representatives from multinational corporations to mid-size businesses and sizable trade associations are now looking to the U.S. Senate to restore measures that they say created a boom time for investment, production and new energy on the grid.
Jeannie Salo, chief public policy officer at Schneider Electric, said in a statement to States Newsroom that “The Senate should restore and extend the timelines for key energy and manufacturing credits and their transferability to ensure the nation continues to attract key investments and projects that will power the U.S. economy and help make energy more affordable.”
Pederson said the restrictions on foreign components and company ties are “particularly restrictive coming out of the House.”
“So we’re hoping to work with the Senate Finance Committee and some of the members of the Senate who have indicated some willingness to make the foreign entity of concern language a little bit more workable,” Pederson said.
Doffling believes senators have a “longer term vision” of the nation’s energy strategy than House members who face reelection every two years.
“They see what’s happening not just in their district, but in the entire state that they represent,” Doffling said.
The House bill just sets the U.S. “further behind,” he added. “This bill is all about going backwards in time and hoping for the best.”
“I wish they could look at the numbers and understand the economic impacts it’s gonna have. … But somehow we’re talking about the fact of hamstringing a whole entire industry itself over verbiage of the word ‘clean.’”
A solar power array. Advocates say projects that help speed the conversion to clean energy, such as solar power, could be stymied by a U.S. House proposal to repeal clean energy tax credits. (Photo by Evan Houk/Maine Morning Star)
The tax cut legislation that U.S. House of Representatives Republicans are putting together in Washington includes measures that will cost thousands of jobs in Wisconsin and undercut the state’s progress toward cleaner energy, according to environmental and labor advocates.
To help pay for the extension of tax cuts enacted in the first Trump administration, the GOP-led House Ways and Means Committee is proposing to repeal clean energy tax credits,Politico reported this week. The tax credits were among the measures enacted in the 2022 Inflation Reduction Act (IRA).
“These credits are not just numbers on a balance sheet out in Washington D.C,” said Emily Pritzkow, executive director of the Wisconsin Building Trades Council, in an online press conference Wednesday. “They are representing real jobs, real economic growth, and real progress towards Wisconsin’s sustainable energy infrastructure. Since the IRA was signed into law in 2022 we have seen an unprecedented boom in clean energy development in the trades.”
The press conference was hosted byForward Together Wisconsin, a nonprofit established to inform people about the Biden administration’s infrastructure and climate investments and to defend them.
“We’ve been seeing this real opportunity to drive energy costs down, and I cannot for the life of me understand why people want to reverse that progress,” said former Lt. Gov. Mandela Barnes, president of Forward Together Wisconsin.
In addition to the tax credits that the U.S. House proposal would repeal, President Donald Trump in his second term has frozen federal clean energy grants that were part of the 2022 legislation. Those include grants to establish a network of electric vehicle charging stations — prompting a lawsuit by 15 states,including Wisconsin.
Solar energy investments that have boomed in the last three years are among those that are threatened by the House proposal, according to advocates.
“At a time when billions of dollars are being invested in states that overwhelmingly voted for President Trump, this proposed legislation will effectively dismantle the most successful industrial onshoring effort in U.S. history,” Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association, said in astatement this week.
Since passage of the IRA, Wisconsin has seen $933 million in clean energy and transportation private-sector investments, along with just over $2 billion from federal grants and loans, according toInnovation Policy & Technology, a San Francisco climate change policy think tank. The organization tallied 61 new clean energy and transportation projects that got underway in the state, with 45 manufacturing American-made products.
“Lower investment and higher energy bills due to repealing these federal programs and tax incentives will cost nearly 5,200 Wisconsin jobs in 2030 and more than 6,400 jobs in 2035, compared to current policies,” Innovation Policy & Technology reported.
The advocacy groupClimate Power has calculated that without the federal support $5.4 billion for 15 planned Wisconsin clean energy projects could be in jeopardy.
Of those projects, 12 — 80% — are in five congressional districts represented by Republicans, according to Climate Power. Three representatives of those districts — Bryan Steil in the 1st CD, Scott Fitzgerald in the 5th CD and Glenn Grothman in the 6th CD — voted against the IRA in 2022. The other two, Derrick Van Orden in the 3rd CD and Tony Wied in the 8th CD, weren’t in office at the time but publicly opposed the legislation.
John Jacobs, business manager of International Brotherhood of Electrical Workers Local 494 in Southeast Wisconsin, said the clean energy tax credits and related policies have spurred investment and employment for the union’s members.
“I see first-hand how the clean energy tax credits have delivered on their promise, creating good family-sustaining union jobs across Wisconsin,” Jacobs said. “Repealing these tax credits could be devastating to many, but would put thousands of jobs at risk and hurt a growing industry.”
The tax credits were “an investment in America,” he added. The jobs lost if the credits are repealed “translate to economic instability for families across our state.”
Thanks to that benefit, called direct support payment, the Menasha Joint School District in the Fox Valley has qualified for a $4 million reimbursement from the federal government for installing rooftop solar energy and geothermal energy systems in a school currently under construction, said Brian Adesso, the school district’s business services director.
Once the school is complete the district expects to save $159,000 a year on its electric bill, “which is cost savings to local taxpayers and money that can be invested back into the students and staff,” Adesso said at the Forward Wisconsin press conference.
Adesso said the tax credits gave the district “certainty” it needed to be willing to undertake the clean energy additions to the project. Killing the credits would make that choice harder for school districts and impose higher costs on local property taxpayers, he added.
“The bill making its way through Congress takes a sledgehammer to the tax credits,” Addesso said — ending some credits early and attaching “bureaucratic restrictions that could make many of the credits unusable.”
Barnes said Forward Wisconsin Together is calling on Congress to protect the clean energy initiatives. “The people of Wisconsin deserve better,” he said. “The country deserves better. Clean energy as we know is the future, and we have to continue to invest in it.”
The U.S. Department of Agriculture announced late Tuesday it will release previously authorized grant funds to farmers and small rural business owners to build renewable energy projects — but only if they rewrite applications to comply with President Donald Trump’s energy priorities.
The move has left some farmers perplexed — and doubtful that they’ll ever get the grant money they were promised, given the Trump administration’s emphasis on fossil fuels and hostility toward renewable energy.
Some of the roughly 6,000 grant applicants have already completed the solar, wind or other energy projects and are awaiting promised repayment from the government. Others say they can’t afford to take on the projects they’d been planning unless the grant money comes through.
A Floodlight analysis shows the overwhelming majority of the intended recipients of this money reside in Trump country — congressional districts represented by Republicans.
After hearing of the USDA’s latest announcement Wednesday, Minnesota strawberry farmer Andy Petran said he suspects many previously approved projects won’t be funded. He’d been approved for a $39,625 grant to install solar panels on his farm. But like many other farmers nationally, Petran got word from the USDA earlier this year that his grant money had been put on hold.
“It’s not like any small farmer who is looking to put solar panels on their farms will be able to put a natural gas refinery or a coal refinery on the farm,” Petran said. “I don’t know what they expect me to switch to.”
Petran was counting on the benefits that solar power would bring to his farm.
After getting word in September that the USDA had approved his grant application, he expected the solar panels would not only reduce his electricity bill but allow him to sell power back to the grid. He and his wife figured the extra income would help expand their Twin Cities Berry Co. and pay down their debt more quickly.
Petran’s optimism was soon extinguished. A USDA representative told him earlier this year that the grant had been frozen.
His 15-acre farm about 40 miles north of Minneapolis operates on a razor-thin margin, Petran said, so without the grant money, he can’t afford to build the $80,000 solar project.
“Winning these grants was a contract between us and the government,” he said. “There was a level of trust there. That trust has been broken.”
Andy Petran, shown here in front of the barn at his Minnesota strawberry farm, had been counting on a USDA grant to help him build a solar array that would have saved the farm money. Now that grant is frozen, so Petran can’t move forward with the project. (Courtesy of Andy Petran)
In its announcement, issued Tuesday night, the USDA said grant recipients will have 30 days to review and revise their project plans to align with President Trump’s Unleashing American Energy Executive Order, which prioritizes fossil fuel production and cuts federal support for renewable energy projects.
“This process gives rural electric providers and small businesses the opportunity to refocus their projects on expanding American energy production while eliminating Biden-era DEIA and climate mandates embedded in previous proposals,” the USDA news release said. “… This updated guidance reflects a broader shift away from the Green New Deal.”
USDA Secretary Brooke Rollins said in the release that the new directive will give rural energy providers and small businesses a chance to “realign their projects” with Trump’s priorities.
It’s unclear what this will mean for grant recipients who’ve already spent money on renewable energy projects — or those whose planned projects have been stalled by the administration’s funding freeze.
The USDA didn’t directly answer those questions. In an email to Floodlight on Wednesday, a department spokesperson said the agency must approve any proposed changes to plans — but offered no specific guidance on what or whether changes should be made.
“Awardees that do not respond via the website will be considered as not wishing to make changes to their proposals, and disbursements and other actions will resume after 30 days,” the email said. “For awardees who respond via the website to confirm no changes, processing on their projects will resume immediately.”
IRA funding targeted
The grant funding was put on hold after an executive order issued by President Trump on his first day in office. It froze hundreds of billions of dollars for renewable energy under President Joe Biden’s massive climate law, the Inflation Reduction Act (IRA).
The law added more than $1 billion to the USDA’s 17-year-old Rural Energy for America (REAP) program.
About 6,000 REAP grants funded with IRA money have been paused and are being reviewed for compliance with Trump’s executive order, according to a March 5 email from the USDA’s rural development office to the office of U.S. Sen. Chris Van Hollen, D-Maryland.
A lawsuit filed earlier this month challenges the legality of the freeze on IRA funding for REAP projects.
Earthjustice lawyer Hana Vizcarra, one of the attorneys who filed the suit, called the latest USDA announcement a “disingenuous stunt.”
“President Trump and Secretary Rollins can’t change the rules of the game well into the second half,” she said in a statement Wednesday. “This is the definition of an arbitrary and capricious catch-22.”
Under the REAP grant program, farmers pay for renewable and lower carbon energy projects, then submit proof of the completed work to the USDA for reimbursement. The grants were intended to fund solar panels, wind turbines, grain dryers, irrigation upgrades and other projects, USDA data shows.
At a press conference in Atlanta on March 12, Rollins said, “If our farmers and ranchers, especially, have already spent money under a commitment that was made, the goal is to make sure they are made whole.”
But some contend the administration is unfairly making farmers jump through more hoops.
“This isn’t cutting red tape; it’s adding more,” said Andy Olsen, senior policy advocate with the Environmental Law and Policy Center, a Midwest-based environmental advocacy group. “The USDA claims to deliver on commitments, but these new rules could result in awarded grants being permanently frozen.”
U.S. Rep. Chellie Pingree, a longtime farmer and Maine Democrat who sits on the House agriculture committee, said she thinks it’s illegal and unconstitutional for the administration to withhold grant money allocated by Congress. Beyond that, she said, it has hurt cash-strapped farmers.
“This is about farmers making ends meet,” she told Floodlight. “It’s not some ideological issue for us.”
GOP lawmakers silent
Using USDA data, Floodlight identified the top 10 congressional districts that received the most grants. They’re all represented by Republicans who have said little publicly about the funding freezes affecting thousands of their constituents. It’s impossible to tell from the USDA data which REAP grants will get paid out.
The congressional district that received the most REAP grants was Iowa’s 2nd District, in the northeastern part of the state. Farmers and business owners there got more than 300 grants from 2023 through 2025. The district is represented by U.S. Rep. Ashley Hinson, who has previously voiced support for “alternative energy strategies.”
“More than half of the energy produced in Iowa is from renewable sources, and that is something for Iowans to be very proud of,” she told the House Appropriations Committee in June 2022.
Hinson’s office did not respond to multiple requests for comment on the matter.
The No. 2 spot for REAP grants: Minnesota’s 1st Congressional District, represented by U.S. Rep. Brad Finstad. In that district, which spans southern Minnesota, more than 260 farmers and rural businesses were approved for REAP grants.
Finstad’s office did not return multiple emails and calls requesting comment. His constituents have been complaining about his silence on funding freezes. They’ve staged at least two demonstrations at his offices in Minnesota. Finstad said he held a Feb. 26 telephone town hall joined by 3,000 people in his district.
In a Feb. 28 letter to a constituent, Finstad said Rollins has announced that the USDA will honor contracts already signed with farmers and that he looks forward to working with the administration “to support the needs of farm country.”
Finstad is no stranger to the REAP program. Before becoming a congressman, he was the USDA’s state director of rural development for Minnesota. In that role, he was a renewable booster.
“By reducing energy costs, renewable energy helps to create opportunities for improvement elsewhere, like creating jobs,” Finstad said in a 2021 USDA press release. That has since been deleted from the agency’s website.
Rollins, meanwhile, called herself “a massive defender of fossil fuels” at her confirmation hearing, and she has expressed skepticism about the findings of climate scientists. “We know the research of CO2 being a pollutant is just not valid,” Rollins said at the Heartland Institute’s 2018 conference on energy.
She has also said that she welcomes the efforts of Elon Musk and his cost-cutting Department of Government Efficiency team at the USDA.
Losing trust in government
Jake Rabe, a solar installer in Blairstown, Iowa, said he has put up more than 100,000 solar modules in the state since getting into the business in 2015. More than 30 of his customers have completed their installation but are awaiting frozen grant funding, he said. At least 10 more have signed the paperwork but are hesitant to begin construction. Millions of dollars worth of business is frozen, he said.
On top of that, Rabe said, the state’s net metering policies — in which solar users get credits for any excess power they send back to the grid — are set to expire in 2026.
“I kind of feel like it may be the beginning of the end for the solar industry in Iowa with what’s going on,” said Rabe, who owns Rabe Hardware.
Despite it all, he remains a Trump supporter.
“Under the current administration, I think we’re doing things that are necessary for the betterment of the entire United States,” he said.
On March 13, Earthjustice, a nonprofit environmental law group, filed a federal lawsuit against the USDA on behalf of five farmers and three nonprofits. They’re seeking a court order to compel the Trump administration to honor the government’s grant commitments, saying it violated the Constitution by refusing to disburse funds allocated by Congress.
Vizcarra, the Earthjustice lawyer, said she is disturbed by the lack of concern from Congress, whose powers appear to have been usurped by the administration.
She added, “These are real people, real farmers and real organizations whose projects have impacts on communities who are left with this horrible situation with no idea of when it will end.”
Thousands of farmers and small rural business owners have been left in limbo because of the Trump administration’s decision to freeze funding from the U.S. Department of Agriculture for renewable energy projects. (Dee J. Hall / Floodlight)
One of the plaintiffs, Laura Beth Resnick, grows dahlias, zinnias and other cut flowers on a small farm about 30 miles north of Baltimore.
Florists are her customers, and demand for her flowers blooms during cold-weather holidays like Thanksgiving. Each of her three greenhouses is half the length of a football field, and heating them during those months isn’t cheap, Resnick said. The power bill for Butterbee Farm often exceeds $500 a month.
So a year ago, Resnick applied for a USDA renewable energy grant, hoping to put solar panels on her barn roof — a move that she estimated would save about $5,000 a year. In August, the USDA sent word that her farm had been awarded a grant for $36,450.
The cost of installing solar panels was $72,000, she said. So she paid a solar contractor $36,000 upfront, expecting that she’d pay the rest in January when the federal grant money came in. The solar panels were installed in December.
But the federal government’s check never arrived. A Feb. 4 email from a USDA representative said her request for reimbursement was rejected due to the Trump administration’s recent executive orders.
Resnick said she sought help from her elected representatives but got “pretty much nowhere.”
After hearing about the USDA’s announcement Wednesday, Resnick said that based on the response she’s previously gotten from the USDA, she’s not confident she will get her grant money.
“I’ve lost my trust in the USDA at this point,” she said. “Our project is complete, so we can’t change the scope of it.”
Van Hollen, the Maryland Democrat, said he supports the legal fight against the funding freeze.
“Donald Trump and Elon Musk are scamming our farmers,” Van Hollen said in a statement to Floodlight. “By illegally withholding these reimbursements for work done under federal grants, they’re breaking a promise to farmers and small businesses in Maryland and across the country.”
Renewable projects on hold
Since 2023, when IRA funding became available, the USDA has given or loaned about $21.3 billion through programs to support renewable energy in rural areas, according to a Floodlight analysis of agency data, including the REAP program.
Those grant payments were processed until Jan. 20, when the Trump administration announced its freeze.
Trump’s decision was in line with Project 2025, a conservative blueprint crafted by the Heritage Foundation aimed at reshaping the U.S. government. That document called for repealing the IRA and rescinding “all funds not already spent by these programs.”
Environmental groups have sharply criticized the administration’s move, and several lawsuits are challenging the legality of the freeze of IRA funding.
At a recent public roundtable, Maggie Bruns, CEO of the Prairie Rivers Network, which supports Illinois communities’ transition to clean energy, listed REAP grants that have been held up in Illinois, where her multifaceted environmental nonprofit is based. A $390,000 grant for a solar array at the grocery store in Carlinville; $27,000 for solar panels at an auto body shop in Staunton; $51,000 for a solar array for a golf course in Alton.
Since 2023, farmers and businesses in Illinois have been approved for more than 590 REAP grants, making the state the third highest in number of recipients in the United States, Floodlight’s analysis shows. In an interview with Barn Raiser, Bruns said the decision to freeze such grants has caused unneeded stress for farmers. Before the executive order, USDA’s rural development team had worked hard to bring dollars for renewable energy projects to Illinois farmers, she said.
“That’s the thing we should be celebrating right now,” Bruns said, “and instead we have to fight to make sure that money actually does land into the pockets of the people who have gone ahead, jumped through all these hoops and are attempting to do the right thing for their businesses and their farms.”
Daniel Batson’s GreenForest tree nursery, shown here, was approved for a $400,367 grant to install solar panels. The move would have saved the Mississippi nursery $25,000 a year, he said. But now the grant has been frozen, and Batson says he can’t afford to move ahead with the project. (Courtesy of Daniel Batson)
In January, Dan Batson’s nursery in Mississippi was approved for a $400,367 REAP grant — money that he planned to use to install four solar arrays. He intended to use that solar energy to power the pumps that irrigate more than 1 million trees, a move that would have saved the company about $25,000 a year in electricity costs.
Seated in a wooded area about 30 miles north of Biloxi, his 42-year-old GreenForest nursery ships potted magnolias, hollies, crepe myrtles and other trees to southern states. Until a couple of months ago, Batson had been excited about what the grant money would mean for the business.
But when he saw news about the funding being held up earlier this year, he called a local USDA representative who confirmed the funds had been frozen. Batson had already sent the solar contractor $240,000. Now, his plans are on hold.
“I just can’t do the project if I don’t get the money,” he said.
Tuesday’s announcement from the USDA makes him no more confident he’ll get the money, he said.
Batson said he’s a fiscal conservative so he understands the effort to cut costs. “But,” he said, “the way they’ve gone about it has disrupted a lot of business owners’ lives.”
Floodlight is a nonprofit newsroom that investigates the powers stalling climate action.
Barn Raiser is a nonprofit newsroom covering rural and small town America.
Mark Fleming has a prediction for those terrified about the impact of a second Trump administration on the clean energy transition: “It’s going to work out better than folks think.”
Fleming is head of Conservatives for Clean Energy, a Raleigh-based nonprofit that brings together lobbyists, consultants, and politicians on the right who support clean energy. The group formed a decade ago, not long before Trump’s first term began, and is now active in six Southeast states. On Tuesday, together with the Chambers for Innovation and Clean Energy, it held its biennial luncheon in downtown Raleigh.
Coming just two weeks after an election most advocates see as a major setback for federal clean energy policy, the Raleigh event was not unlike past affairs, with congenial vibes, a half dozen awards to politicians and businesses, and presentation from leading Republican consultants assessing the political salience of clean energy.
“It was an election about the economy and immigration,” explained Paul Shumaker, one such pollster and a fixture at these gatherings. “Clean energy is never going to be the issue.”
Trump and his hostile, mostly fact-free rants on the campaign trail about wind energy and the climate crisis got little mention during the formal presentations. Side conversations showed conservatives seemed relatively unconcerned about the future president’s tirades and threats.
“Governing is different than campaigning,” Fleming said.
He and others believe much of Trump’s rhetoric was tossed as red meat to his base of supporters and won’t get meaningful follow-through. On technologies such as offshore wind — which the incoming president frequently lambasts — perhaps the administration and even the man himself can be convinced of its economic benefits, attendees suggested.
Virginia Gov. Glenn Youngkin, a Republican who supports offshore wind in the commonwealth, “will be at the top of the list of conservative policy makers in terms of encouraging the Trump administration to look at the positives on offshore wind,” Fleming said. “It makes long term economic sense, but there’s going to be some education there.”
Nine new projects announced in North Carolina the year after the measure’s passage, from lithium processing to vehicle-charging equipment plants, will spur tens of thousands of jobs and add $10 billion to the state’s GDP, the clean economy group E2 found.
Such data should be fodder for members of Congress like Sen. Thom Tillis, North Carolina’s senior U.S. senator and a Republican, to fight to keep most of the Inflation Reduction Act’s provisions.
“He has been such a thoughtful leader on energy issues,” Fleming said of Tillis. “He’s going to be a key decision maker in the U.S. Senate on these clean energy issues moving forward.”
‘We won’t agree on everything’
Jason Saine, a Lincoln County Republican who served more than a dozen years in the North Carolina House and now works as a lobbyist, was among the luncheon’s awardees. He says Trump’s rhetoric is just part of politics.
“Good science and good facts will rule the day, but in the meantime, we’ll suffer through a lot of rhetoric,” he said.
Like some of his conservative colleagues who focus on federal policy, Fleming hopes the closely divided Congress will have new reason to enact reforms to the permitting process that will speed approval of clean energy as well as fossil fuel projects.
And though he’s confident that much of the Inflation Reduction Act will survive, Fleming believes Congress will trim it — a “scalpel rather than a sledgehammer” approach.
Saine agrees. “It can always be recreated in a different format and voted on again,” he said. “What’s dead today is never dead tomorrow.”
One item in the climate law that’s ripe for repeal is the $7,500 tax credit for electric vehicles, Fleming said. That incentive is spurring plenty of economic development in rural areas in the form of EV and battery factories, but it’s perceived as benefiting only urban folk.
“The administration will want wins,” Fleming insisted. “We won’t agree on everything. But I think we’ll have opportunities to work together to move the economy forward and move the clean energy cause forward in D.C.”
No matter what, most of the luncheon attendees remained focused on incremental reforms in North Carolina — where the power dynamics are largely unchanged after Nov. 5. Trump won the state, but Democrat Josh Stein trounced a scandal-plagued Republican to win the governor’s race. The GOP continues to control a heavily gerrymandered legislature and is just one vote shy of a veto-proof majority in the House.
Still, as “Trump II” approaches, Fleming acknowledged Conservatives for Clean Energy has an important role to play.
“It’s going to be better than folks think,” he repeated. “But the onus will be on all of us to make it happen. Now, groups like ours are more needed than ever. That thought leadership on these issues will be on the right. It’s not going to be from our friends on the left.”
A successful regional collaboration to secure federal Inflation Reduction Act money in northeast Ohio has inspired a new, ongoing effort to help cities, counties, utilities and community groups coordinate on clean energy.
Three Cleveland-area foundations last month announced the launch of Power Up Local, which aims to play both a matchmaker and wedding planner role on large-scale, regional clean energy developments. The initiative plans to help connect potential partners, maximize projects’ community benefits, and facilitate joint funding opportunities such as federal grants, tax incentives, or green bank loans.
“This is really looking for the larger, more ambitious stakeholder projects that have direct stakeholder benefits,” said Daniel Gray, Power Up Local’s executive director. A big emphasis will be on assembling groups who “might not have worked with each other originally or understood where there’s an overlap” between clean energy and other goals.
The initiative could offer a new path for local leaders to advance in a place where state government remains hostile to clean energy. The continued availability of federal funding is in question following former President Donald Trump’s reelection, but Gray and others said they are confident some form of federal support for clean energy will remain during his second term.
The idea for Power Up Local grew out of collaboration among Cuyahoga County, the cities of Cleveland and Painesville, and other organizations on a $129 million grant application under the federal Climate Pollution Reduction Grant program. The application was among those awarded funding in July. It includes money for closing a coal plant and building multiple solar arrays, including on four closed landfills.
Beyond reducing pollution, the project will help lower electricity costs and generate revenue. Some of that will in turn aid in conservation efforts for the West Creek Conservancy, including lakeside access for residents in Lake County. Gray did some work on the project as director of local strategies for the Citizens Utility Board of Ohio, and local philanthropic support also helped in assembling the grant application.
The Cleveland Foundation, George Gund Foundation and the Fund for Our Economic Future are providing initial funding for Power Up Local. Initially, the program’s three full-time employees are being housed under Fund for Our Economic Future, with a goal of spinning it out as an independent nonprofit by 2027.
Gray said Power Up Local will help stakeholders think bigger and more broadly about projects. For example, a project to redevelop a former industrial site may be able to help bring in other properties from a land bank or other group, potentially expanding into an economic redevelopment district that might support a microgrid, he suggested.
“We can add efficiency to projects, both financially and timewise,” Gray said.
Power Up Local will be a resource for organizations that want to add clean energy to a project but may not have the time or bandwidth to figure out how to do it. “They don’t necessarily know how to engage the marketplace,” Gray said.
And when it comes to funding, competitive grants will just be part of the story. A range of other credits or incentives can also help bring more clean energy. That raised a question, said Stephen Love, program director for environmental initiatives at the Cleveland Foundation: “What would it look like at scale beyond just the competitive grants to really unlock the whole scale of federal resources?”
While Power Up Local will work on clean energy projects, those projects must still be “net-neutral or revenue-positive” in order to promote economic development, Gray said. “We’re looking to develop as much community benefit as possible.”
Those benefits can come from lower electricity rates for people with high energy burdens, health benefits from lower pollution, job opportunities, conservation, access to parks, redevelopment of properties to attract businesses, and so on.
“This is about economic development. This is about creating economic opportunity in our communities,” said Love. As he sees it, clean energy can help drive that development.
Uncertainties ahead
No one knows what Trump’s presidential victory will mean for federal clean energy funding, but advocates are confident some funding will still be available.
“There are still grants to go after, and will likely still be grants to go after in the future,” Gray said. A repeal of the Inflation Reduction Act and Bipartisan Infrastructure Law would take time, and much of the grant funding has flowed to districts that supported Trump in 2020.
Even if agencies under Trump stopped carrying out the law, “I don’t think the bulk of the IRA direct credits are going to go away,” Gray said. He noted that Rep. Dave Joyce (R-Bainbridge Township) is among 18 members of Congress who wrote to House Speaker Mike Johnson this summer to support continuation of the energy tax credits.
Atlas Public Policy’s Climate Portal Program estimates those tax credits could exceed a quarter of a trillion dollars, with nearly another $250 billion of potential credits under the 2021 Bipartisan Infrastructure Law. Those credits can serve as refunds for nonprofits and local governments, which is how sewage treatment authorities in Columbus and Cincinnati plan to offset big chunks of the costs for biogas plants at two of their wastewater treatment facilities.
Financing opportunities will also be available from green banks, Gray said. Commercial banks also are looking to expand their portfolios for financing clean energy projects as part of corporate sustainability goals, he noted.
Power A Clean Future Ohio has already been working for several years to help its 50 local government members find ways to cut greenhouse gas emissions, based on their individual interests and priorities. Executive Director Joe Flarida said Power Up Local’s work will be a welcome complement to its ongoing work.
“It just underscores the huge needs we have in the state of Ohio to invest locally and ensure that our local leaders and local governments have all the resources they need to do this work efficiently,” he said.
In Flarida’s view, an anti-climate approach by the incoming Trump administration “is also an anti-jobs approach.” And even if the federal government no longer treats climate change as a key priority, “that doesn’t change the reality that this is an issue we have to address head on,” he said.
Gray encourages local governments and other organizations with ideas for projects to reach out in the coming weeks and months.
“Now is the time to start thinking about what might be possible,” he said.
The Biden administration has enacted the most consequential federal clean energy and climate policy in U.S. history, giving the nation a fighting chance at reducing greenhouse gas emissions fast enough to deal with the climate crisis. Former President Donald Trump, who has won the 2024 presidential election, has pledged to undo that work.
Though Trump’s executive powers will allow him to slow the energy transition in a number of ways, the extent to which he rolls back Biden’s clean energy accomplishments will be dictated in part by whether Republicans retain control of the House of Representatives. The GOP flipped the U.S. Senate, but votes are still being counted in key House races as of Wednesday morning.
Here’s what clean energy and climate experts say is most likely to be lost under a second Trump administration — and what might survive.
What Trump has said about energy
Trump’s rhetoric presages a worst-case future. He has called climate change a hoax and the Biden administration’s climate policies a “green new scam.” He has said he wants to repeal the landmark Inflation Reduction Act and halt the law’s hundreds of billions of dollars of tax credits, grants, and other federal incentives for clean energy, electric vehicles, and other low-carbon technologies.
Trump has also made “drill, baby, drill” a call-and-response line at his rallies, pledging to undo any restraints on production and use of the fossil fuels driving climate change. U.S. oil and gas production is already at a record high under the Biden administration.
“He has pledged to do the bidding for Big Oil on day one,” Andrew Reagan, executive director of Clean Energy for America, said during a recent webinar.
“Oil and gas lobbyists are drafting executive orders for him to sign on day one,” Reagan added, citing news reports of plans from oil industry groups to roll back key Biden administration regulations and executive orders.
A Trump administration would be all but certain to reverse key Environmental Protection Agency regulations limiting greenhouse gas emissions from power plants, light-duty and heavy-duty vehicles, and the oil and gas industry, all of which analysts say are necessary to meet the country’s climate commitments. It’s also almost sure to lift the Biden administration’s pause on federal permitting of fossil-gas export facilities.
Trump has also promised to withdraw the U.S. from international climate agreements (again), including the Paris agreement aimed at limiting global warming to no more than 2 degrees Celsius above pre-industrial levels.
“We know that Trump would take us out of the Paris agreement, and that would be the last time his administration uttered the word ‘climate,’” Catherine Wolfram, an economist at the MIT Sloan School of Management and former deputy assistant secretary for climate and energy economics in the Biden administration’s Treasury Department, told Canary Media. “Losing that global leadership would be one of the greatest losses of a Trump presidency.”
What will happen to the Inflation Reduction Act?
Trump won’t have the power to enact all of his promises on his own. Some of the decisions must be made by Congress, including any effort to repeal the Inflation Reduction Act or to claw back unspent funds from that law or the 2021 bipartisan infrastructure law.
Complete repeal of the Inflation Reduction Act would be highly disruptive to a clean energy sector that has seen planned investment grow to roughly $500 billion since the law was passed in mid-2022.
It would also undermine clean energy job growth, which has increased at roughly twice the pace of U.S. employment overall. A recent survey of clean energy companies found that a repeal of the law would be expected to lead to half of them losing business or revenue, roughly one-quarter losing projects or contracts, about one-fifth laying off workers, and about one in 10 going out of business.
“We found that especially rural areas and smaller rural communities would experience the largest negative impacts of repeal of the Inflation Reduction Act,” Shara Mohtadi, co-founder of S2 Strategies, said in an October webinar presenting the survey data. “These are the regions of the country that have seen the biggest uptake in the economic benefits and the manufacturing jobs coming from other countries into the United States.”
These on-the-ground realities have driven expectations that large swaths of the law’s tax credits would be likely to survive even with Republican control of the White House and both houses of Congress. Trump would face pushback within his own party to undoing the law entirely.
In an August letter to current Speaker of the House Mike Johnson (R-Louisiana), 18 House Republicans warned against repealing the clean energy and manufacturing tax credits created by the Inflation Reduction Act, which have “spurred innovation, incentivized investment, and created good jobs in many parts of the country — including many districts represented by members of our conference.”
“Prematurely repealing energy tax credits, particularly those which were used to justify investments that already broke ground, would undermine private investments and stop development that is already ongoing,” the 18 House Republicans wrote. “A full repeal would create a worst-case scenario where we would have spent billions of taxpayer dollars and received next to nothing in return.”
Republicans would need a roughly 20-seat majority to overcome opposition from these party members opposed to a full repeal, said Harry Godfrey, head of the federal investment and manufacturing working group of trade group Advanced Energy United.
“I don’t envision Republicans holding the House with 20-plus seats,” he said.
Godfrey also doubted that a Trump administration would be eager to undermine the domestic manufacturing boom that the law’s tax credits have spurred. He noted that at the October 1 vice-presidential debate, J.D. Vance, the Republican Ohio senator and Trump’s running mate, emphasized the need for the U.S. to “consolidate American dominance” in key energy sectors and industries now dominated by China.
While Vance went on to falsely accuse the Biden administration of failing to bolster U.S. industries against China, the goal of emphasizing domestic competitiveness could lead Republicans to avoid undermining progress in that direction, he suggested.
The following commentary was written by Mel Mackinm, director of state policy at Ceres, a nonprofit that works with investors and companies to advance clean energy policy.See our commentary guidelines for more information.
Look out across Michigan and you’ll see groundbreakings for major solar panel manufacturing sites, huge investments to build battery cells, and sparkling new facilities to ensure the state stays in the driver’s seat as the auto industry moves into the future.
It seems Michigan manufacturing is having a moment.
It’s little wonder why. Michigan has always had the legacy, the workforce, the supply chains, and the know-how to serve as the epicenter of an American manufacturing renaissance. That’s exactly what’s happened since Congress finalized the nation’s largest-ever clean energy investment in the summer of 2022.
Powered by incentives for companies to manufacture and deploy clean energy infrastructure and technology here in the U.S., the Inflation Reduction Act has unlocked more than $360 billion in private-sector investment in less than two years, according to research from Climate Power. Its impact has been felt in every corner of the country with hundreds of new projects taking shape to build innovative technologies, employ hundreds of thousands of workers, and power the economy – all while cutting costs and pollution. But no other state has seen as much activity as Michigan, the site of 58 new clean energy projects.
Michigan policymakers deserve some credit for moving quickly to take full advantage of this opportunity. In 2022, Gov. Gretchen Whitmer made clear in her MI Healthy Climate Plan that she wanted to make Michigan one of the best places in the world to build and deploy clean energy. Lawmakers since followed her lead with legislation that will move the state to 100% clean electricity by 2040 and ensure clean power infrastructure can be built both quickly and responsibly – a pair of laws that boasted ample support from Michigan companies that recognize confronting climate change is also an economic opportunity.
These policies were designed to fully harness the Inflation Reduction Act, making clear that the state is ready to support the growing number of businesses that supply or rely on innovative clean technology. In response, businesses that include classic Michigan manufacturers like GM, global brands like Corning, and upstarts like Lucid Motors have flooded the state with more than $21.5 billion in new clean energy innovation and manufacturing investment, creating some 20,100 new jobs.
With projects located from Detroit to Holland to Traverse City, so much of the state is already benefitting. That includes communities that have so far been left behind in the 21st century economy. About half of the state’s recent clean energy investment is located in rural or low-income areas, such as Norm Fasteners’ $77 million facility that will create 200 electric vehicle supply chain jobs in Bath Charter Township.
Now is not the time to slow down. We are now in the throes of the 2024 election, and we all know Michigan has been getting a lot of attention. No matter what happens in November, Michigan and the U.S. must continue investing in this revamped manufacturing base. Policymakers on both sides of the aisle have prioritized rebuilding American industry to provide good jobs and bolster U.S. leadership
Michigan’s clean energy manufacturing boom provides clear evidence that this shared goal is coming to fruition. Policymakers at both the federal and state levels, along with leaders in the private sector, must maintain this momentum and the strong policy environment that will allow the U.S. and its workforce to lead the global economy in the emerging industries of the future – with Michigan, as it so often has, standing strong as the foundation.
The beginning of construction activities on the NatriumTM demonstration project site marks the first advanced nuclear reactor project under construction in the Western Hemisphere. BELLEVUE, Washington – June 10, 2024 – TerraPower, a leading nuclear innovation company, today celebrated the start of construction on the Natrium reactor1 demonstration project. This marks the first advanced reactor …
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