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House Republicans Backslide on IRA Cuts

June 13, 2025

NEED TO KNOW

COMMON SENSE


CRACKDOWN IN CALIFORNIA: The Department of Justice has issued a warning to California regulators, threatening legal intervention if the state proceeds with strict energy efficiency policies that would effectively phase out certain gas appliances. As of Friday, June 6th, the South Coast Air Quality Management voted 7-5 to reject the rules targeting gas-powered furnaces and water heaters, but the proposal will be sent back to committee for further consideration and changes.

Why it matters: The move signals a direct clash between federal efforts to promote domestic energy resources and the state’s ambitious climate agenda. It also reinforces the Trump administration’s desire to allow free markets to determine energy choice for consumers.

For years the state has promoted an anti-fossil fuels agenda, using costly and burdensome regulations to stifle natural gas and oil, while promoting wind and solar projects.

Consider:

  • U.S. Attorney Bilal Essayli sent a letter to the South Coast Air Quality Management District, cautioning that the DOJ is prepared to take legal action if the district enacts rules requiring manufacturers to ensure 90% of their furnace and water heater sales are zero-emission models by 2036.
  • The proposed California regulations stand in contrast to the prior administration’s efforts.
  • Former President Joe Biden had introduced stringent energy efficiency regulations for various appliances as part of his climate agenda, including tightening rules on dishwashers, gas stoves and water heaters.

Essayli said, “my office stands ready to challenge these misguided proposals and defend the interests of our residents.”

It’s worth noting that his letter also states, “The law is clear — feds set energy policy, not unelected climate bureaucrats.” That’s a significant point and one that should be welcome news for California residents.

One Orange County official noted the rules don’t target refineries or shopping ports. They target people, including 17 million homeowners, renters, seniors and small business owners.

Bottom line: The days of the climate cult and its band of misled and unelected bureaucrats setting policy are coming to an end. The Trump administration is committed to protecting energy choice and consumer freedom in all facets.

 

NONSENSE


BACKSLIDING ON IRA CUTS: After championing the House-passed “Big, Beautiful Bill” that included deep cuts to green energy handouts, 13 House Republicans are now urging the Senate to scale back those same cuts. It’s a stunning and disappointing reversal.

Why it matters: Half-measures won’t cut it. Failing to fully repeal the Inflation Reduction Act’s (IRA) green subsidies will raise energy costs, embolden foreign adversaries and compromise America’s energy independence. Full stop.
The IRA  green energy tax credits are estimated to cost between $936 billion and $1.97 trillion over the next 10 years, according to various analyses.

Let’s be clear: TEA supports honoring commitments to existing projects already approved and in progress. But we are unequivocally opposed to any extension of subsidies for solar and wind into the future. Not one dime.

Yes, some lawmakers represent districts with grandfathered projects and job ties. Yes, many are in swing districts and feeling the political squeeze heading into 2026. That’s the reality. But political pressure is no excuse for abandoning principle. This reversal echoes the infamous 2004 John Kerry gaffe: “I actually did vote for the $87 billion before I voted against it.” Voters deserve better than that kind of double-speak.

Consider: Lawmakers must vote their convictions — not political calculations. Americans didn’t vote last fall for hedging and half-measures. They clearly wanted bold reform and an end to billion-dollar taxpayer giveaways to industries that can’t stand on their own.

The irony? At least six of the 13 Republicans now walking back their stance received top marks on TEA’s Energy Patriot Scorecards before the 2024 election.

  • Several spoke firmly about the need for energy independence, reducing gas prices and unleashing American energy.
  • One openly condemned former President Biden’s war on U.S. energy production.
  • Another pushed hard for investment in oil and gas development.

Sen. Shelley Moore Capito (R-W.Va.) has indicated her version of the bill might soften some deadlines, but won’t include sweeping changes. We hope she holds the line.

Bottom line: President Trump promised to dismantle the Green New Scam. And this is the moment to deliver. Weakening the IRA cuts or reintroducing subsidies is a betrayal of that promise and a direct blow to energy affordability and security.


A LOOK AHEAD


Hearing On Energy Budget: On Wednesday, June 18, the Senate Energy and Natural Resources Committee will have a hearing on the fiscal year 2026 Department of the Energy budget.


QUOTE OF THE WEEK


“Affordable, reliable electricity is key to the American dream and a natural byproduct of national energy dominance. According to many, the primary purpose of these Biden-Harris administration regulations was to destroy industries that didn’t align with their narrow-minded climate change zealotry. Together, these rules have been criticized as being designed to regulate coal, oil and gas out of existence.”

— EPA Administrator Lee Zeldin on his agency’s proposal to repeal the Biden-era Clean Power Plan 2.0.