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House Republicans target clean energy tax credits and pollution rules in budget proposal

WASHINGTON (AP) — House Republicans are calling for billions of dollars in funding cuts for Biden-era climate and environmental programs, including clean energy tax credits, as lawmakers seek to reverse what one GOP leader called “the most reckless p
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FILE - Ken Honeycutt demonstrates charging his Kia Soul electric vehicle in San Lorenzo, Calif., Nov. 9, 2024. (AP Photo/Jeff Chiu, File)

WASHINGTON (AP) — House Republicans are calling for billions of dollars in funding cuts for Biden-era climate and environmental programs, including clean energy tax credits, as lawmakers seek to reverse what one GOP leader called “the most reckless parts of the engorged climate spending" approved under former President Joe Biden.

Environmental groups warned the proposals would pave the way for more oil and gas industry activity on public lands and increase planet-warming greenhouse gas emissions in the United States.

The House committees on Energy and Commerce and Ways and Means are set to discuss the plans Tuesday as part of the so-called budget reconciliation process. Several moves are aimed at clawing back billions in spending authorized by the , a Democratic measure intended to slow climate change and boost clean energy such as wind and solar power.

has set a Memorial Day deadline to pass President Donald Trump’s big bill of tax breaks and spending cuts, and the GOP has scheduled round-the-clock hearings this week on various sections of the bill before they are stitched together in what will become a massive package.

Republican Rep. Brett Guthrie of Kentucky, chairman of the House Energy and Commerce panel, said his committee’s bill, unveiled Sunday, would return $6.5 billion in unspent funds intended for climate programs included in the 2022 law. In an , he said the plan “ends spending on Green New Deal-style waste" and claws back money "headed for green boondoggles'' such as grants for environmental and climate justice.

“The legislation would reverse the most reckless parts of the engorged climate spending in the misnamed Inflation Reduction Act,” Guthrie wrote.

The cuts to climate programs are part of a larger by 2034 proposed in the draft legislation that also covers communication and health-related policy, largely targeting Medicaid.

The cuts fit with Trump’s , which looks to slash federal spending through a sweeping reorganization of federal agencies as well as steep cuts to disease research and, especially, and policies intended to address climate change. Congress ultimately decides the spending and tax plans.

In Trump’s first few months back in the White House, the administration has broadly gone after , many of which were put into place under the Biden administration, pledging to dismantle what Trump calls the Democrats’ “green new scam.”

Groups decry the proposals

The GOP proposal “guts investments that are cutting energy costs" for families, “powering a domestic manufacturing boom and delivering essential health care to the communities that need it most,'' said Lena Moffitt, executive director of the environmental group Evergreen Action.

The Republican move to loosen pollution standards “would mean more smog in our streets,” while cuts to environmental justice block grants “would force low-income communities to pay more for dirtier energy," she added. “Republicans are sacrificing clean energy on the altar of Big Oil to bankroll another round of tax cuts for the ultra-wealthy."

Alexandra Adams, chief policy advocacy officer at the Natural Resources Defense Council, said the Energy and Commerce bill “gives polluters free rein to foul the air and water.” Cleaning up U.S. ports and reducing dangerous methane spewing from oil and gas wells have traditionally received bipartisan support, she said.

Albert Gore, executive director of the Zero Emission Transportation Association, said the moves would impact federal investments in domestic battery and mineral supply chain jobs.

“At a moment when our industry needs certainty more than ever, this legislation could slam the brakes on America’s progress towards global competitiveness in manufacturing, while ceding leadership to other countries,” he said.

The National Ocean Industries Association, which represents the offshore oil and wind industries, warned against what it called “premature repeal or phase-out of current tax credits.”

“Sudden changes to the tax code could inject significant uncertainty, jeopardizing capital allocation, project planning and job creation” in offshore energy and the broader economy, said Erik Milito, the group’s president.

Climate programs targeted

The would reclaim unused billions from several Inflation Reduction Act programs, repeal sections of the Clean Air Act and emphasize support for oil and gas drilling.

The plan also pulls back money for the Energy Department's multi-billion dollar loan program for clean energy, the Environmental Protection Agency's — commonly known as the “green bank” — and certain multistate and .

It would rescind funding for clean vehicles, loosen and cut money for zero-emission and air pollution monitoring, while at the same time allow for an expedited permitting process — opposed by environmental groups — for natural gas drilling and increasing supply of the nation's Strategic Petroleum Reserve.

Republicans in the House Ways and Means Committee on Monday released their own proposal to repeal clean energy tax credits.

Proponents, including some Republicans, say credits boost demand for technologies, such as solar or electric vehicles, that reduce harmful emissions and help drive down their cost.

Under Trump, federal government agencies have investment, blocked , rolled back , cut and reconsidered .

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St. John reported from Detroit.

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Read more of AP’s climate coverage at .

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Alexa St. John is an Associated Press climate reporter. Follow her on X: . Reach her at [email protected].

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The Associated Press’ climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s for working with philanthropies, a list of supporters and funded coverage areas at .

Alexa St. John And Matthew Daly, The Associated Press

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