In a dramatic policy shift President Donald Trump newly passed budget bill is raising alarm bells across environmental and clean energy circles. Signed just in time for the July 4 holiday the legislation rolls back several key provisions aimed at supporting America climate goals potentially setting back years of progress in renewable energy and emissions reduction.
The sweeping bill, which narrowly passed through Congress, prioritizes tax extensions, immigration enforcement funding, and steep cuts to public welfare programs. But its most consequential impacts may lie in the quiet dismantling of green energy incentives. Key provisions of former President Joe Biden Inflation Reduction Act, including tax breaks for electric vehicles, energy-efficient homes, and clean energy manufacturing, have been repealed or weakened.
While a proposed excise tax on renewables was eventually dropped from the final bill, the broader package still makes it significantly harder to build new clean energy infrastructure. The legislation also slashes funding for programs helping oil and gas producers reduce methane emissions, a move environmental groups say undermines both climate and public health safeguards.
Adding fuel to the fire the bill mandates a revival of onshore oil and gas lease sales paused under the Biden administration effectively reopening vast tracts of federal land to fossil fuel exploration.
Environmental watchdogs argue this bill is not just a budget measure but a policy weapon aimed at bolstering fossil fuel dominance while sidelining America’s growing clean tech sector. Critics warn it could increase electricity prices, burden the power grid, and drive automakers toward less efficient vehicle production.
Meanwhile, fossil fuel lobby groups are celebrating the legislation as a victory for “energy dominance,” claiming it will boost investment and spur economic growth through expanded oil and gas access.
As the United States faces intensifying climate threats—from wildfires to heatwaves—this rollback raises serious questions about the country’s direction on energy, environment, and its global leadership in climate action.