After months of political wrangling, President Trump has signed a significant reconciliation package that largely undermines the Inflation Reduction Act (IRA). This package, often referred to as the “Big Ugly Bill,” has far-reaching implications for America’s energy and environmental landscape.
Recently, we highlighted how this bill threatens vital climate efforts globally. Experts warn that it could jeopardize over one million jobs and greatly increase energy costs for households across the country.
On July 1, the Senate passed the bill, with Vice President JD Vance casting the tie-breaking vote. The House followed suit two days later, and the President signed it into law on July 4.
House Minority Leader Hakeem Jeffries made headlines by speaking for over eight hours in opposition to the bill before the final House vote. This effort underscored the potential dangers posed to everyday Americans.
Key Changes in Energy Policy
The new legislation significantly reduces funding for critical clean energy initiatives:
Tax Credits Cut: The Production Tax Credit (PTC) and Investment Tax Credit (ITC)—essential for wind, solar, and battery storage projects—will be slashed by 40% for projects starting in 2026 and eliminated entirely by 2028. Those launching projects before the end of 2025 may still claim existing credits but will face tighter deadlines.
Electric Vehicle (EV) Tax Credit Repealed: This bill effectively removes the $7,500 federal tax credit for new EVs after September 30, 2025, alongside the $4,000 incentive for used electric vehicles. Kelley Blue Book reports that new EVs currently average $9,000 more than gas-powered cars, making these credits crucial for affordability. Without them, EVs may become out of reach for many consumers.
Residential Energy Credits Ended: Starting December 31, 2025, popular residential tax credits for upgrades like rooftop solar, battery storage, and high-efficiency HVAC systems will cease. These credits previously covered up to 30% of homeowners’ costs, making clean energy options more attainable. Their removal could hinder the adoption of technologies beneficial for both the environment and household budgets.
Additionally, the bill reduces funding for Electric School Bus programs, which help reduce air pollution from diesel vehicles that affect our neighborhoods.
Broader Context
Historically, the IRA was a significant step toward addressing climate change in the U.S., indicating a bipartisan understanding of the need for clean energy investment. The recent changes mark a stark departure from this path. Experts in environmental policy note that by dismantling these programs, we may be reversing years of progress in green technology and renewable energy.
According to a recent report from the International Energy Agency (IEA), renewable energy sources like solar and wind are projected to provide nearly 90% of the increase in global power generation through 2025. Rolling back U.S. support for these industries could hinder not only domestic job growth but also the global efforts to combat climate change.
Many social media users are voicing their concerns over these changes, expressing disbelief that the U.S. would take such a step back. The trending hashtag #ClimateRollback highlights the public’s growing frustration with perceived threats to environmental policy.
The implications of the “Big Ugly Bill” are serious. By stripping away crucial support for clean energy, it’s likely to harm public health, the economy, and the environment for years to come. As discussions around climate action continue, there remains a pressing need for state-level initiatives to tackle these issues head-on.
The landscape of American energy policy is rapidly changing. For those invested in clean energy and climate health, the fight is far from over.
