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03 Jul
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Trump’s budget bill boosts fossil fuels, hits renewable energy

US Senate Passes Budget Bill That Favors Fossil Fuels Over Clean Energy

Washington, July 3, 2025 — The US Senate has approved a new budget bill that shifts the country’s energy policy back towards fossil fuels, while reducing incentives for renewable energy development.

Under the bill, key tax credits for solar and wind projects will be cut back and phased out sooner than planned, with residential solar credits ending by 2027. Meanwhile, the legislation will expand oil and gas drilling on federal lands, including new lease sales in Alaska’s Arctic region and the Gulf of Mexico, and lower royalty rates for coal production.

The bill also cancels remaining funds from the Inflation Reduction Act that were intended for clean energy projects, green buildings, and community energy programs.

Experts warn that the rollback could slow down investment in renewable energy, threaten clean energy jobs, and increase reliance on fossil fuels at a time when global demand for cleaner solutions is rising.

The legislation will now move to the House of Representatives for final approval.