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The Big, Somewhat Beautiful, Bill

May 23, 2025

NEED TO KNOW

 

COMMON SENSE


CUTTING INTO THE ‘GREEN NEW SCAM’: With a national debt of $37 trillion, America can’t afford to waste billions more on green energy subsidies. We thought a full repeal of the IRA should have been non-negotiable as House members mulled President Trump’s “Big, Beautiful Bill.”

 A compromise was reached Thursday morning, as often in politics. The good news is that tax incentives for clean electricity production are set to end years earlier than initially proposed in a new version of the giant tax and spending bill released by House Republicans.

Why it matters:

The heart of the Republican budget legislation targets key climate and energy provisions of the Inflation Reduction Act. Cuts would impact businesses and consumers, affecting renewable energy, manufacturing, energy efficiency, and electric vehicles. Concurrently, House Republicans proposed streamlining permitting for fossil fuels, rescinding Clean Air Act pollution funding, and allocating $2 billion to the Strategic Petroleum Reserve.

According to a report from the Clean Investment Monitor, the Inflation Reduction Act has led to $321 billion worth of climate investments being completed, with $522 billion worth of investments still in process. Congress was tasked with finding $1.5 trillion in spending cuts to fund the Trump tax cuts.

Consider: these key changes to the energy portions of the bill

  • It speeds up the rollback of renewable energy tax credits. The prior iteration phased out the credits beginning in 2028, with partial credit available up until 2032.
  • Under the new version, there is no partial credit, and any projects that begin producing electricity after 2028 will not be eligible at all.
  • To get the credit, projects must also begin construction within 60 days of the bill’s enactment.
  • All in all, the bill rescinds an estimated $677.8 billion of the total $1.2 trillion in IRA subsidies, according to Goldman Sachs research.

The revisions include ending technology-neutral clean electricity tax credits for sources like wind and solar starting in 2029 and requiring those projects to commence construction within 60 days of the legislation becoming law. The initial version proposed by House Republicans had a longer phase-out time, allowing many of the credits to exist until 2032.

“They would probably amount to a hard shutdown of the IRA,” said James Lucier, managing director at research group Capital Alpha Partners, referring to Biden’s Inflation Reduction Act.

The thorny issue is that by extending subsidies through 2028, the possibility that a new administration could revive them before they expire remains. That’s a risk that Congress should keep in mind as it finalizes the measure. Allowing subsidies that apply to existing, approved projects is a livable compromise for this bill, but, the fact remains, the government should not be picking winners or losers at the expense of affordable, reliable energy for American families.

Bottom line: President Trump and Republicans ran on eliminating the Green New Scam (IRA). The BBB eliminates most IRA subsidies but stops short of a full repeal. If you care about affordable, reliable energy, this is a step in the right direction, but disappointing nonetheless.

 

NONSENSE


CHINESE ‘KILL SWITCHES’ POSE A THREAT: Chinese “kill switches” that could allow Beijing to cripple power grids and trigger blackouts across the West have been found in equipment at US solar farms. The Reuters report fuels fears that China has embedded covert malware in Western energy grids, with kill switches ready to activate in a crisis. If there is a confrontation between the Chinese Communist Party and the West, unthinkable consequences could result.

Why it matters:

Experts warn that rogue devices could bypass firewalls to remotely shut down or reprogram inverters, risking grid failure, infrastructure damage, and mass blackouts. “It’s essentially a built-in method to destroy the grid,” one source said. That’s beyond frightening.

Sen. Rick Scott, R-Fla., called it “terrifying” that the CCP could have any control over the U.S. grid.

Sen. Scott and Sen. Maggie Hassan, D-N.H., have introduced bipartisan legislation. Sen. Scott is bringing back the Protect American Power Infrastructure Act “to slam the door shut on any Chinese influence over our electric grid.”

Consider:

  • Chinese infiltration of strategic US infrastructure has long been a source of concern as tensions rise between the rival superpowers. With AI and other technological advances, this should come as no surprise.
  • In November, solar power inverters in the U.S. and elsewhere were disabled from China, highlighting the risk of foreign influence over local electricity supplies and causing concern among government officials.
  • It’s unknown how many inverters were switched off or the extent of disruption to grids.
  • The DOE declined to comment on the incident.

This is precisely why President Trump and his administration want to stop relying on unfriendly countries for energy needs. And China, make no mistake, is not our friend. China dominates the supply chain for refined materials to manufacture wind, solar, and EVs. Energy policies that make us more reliant on renewables are a national security risk, full stop.

Bottom line: If ever there was a wake-up call regarding the urgent need for the U.S. to be even more committed to energy independence, it has arrived in the form of China’s ability to turn off the U.S. power grid remotely. This must change before it’s too late and China leaves America in the dark.

 

A LOOK AHEAD

Nothing on the calendar for next week, enjoy your MDW!

 

QUOTE OF THE WEEK


“When the President said ‘End the Green New Scam,’ he didn’t mean leave 40 to 45 to 50% of the subsidies ongoing.”

— Rep. Chip Roy (R-Texas)