The Trump Administration’s cuts to clean energy projects is already having significant economic consequences for American families, workers and the future of American high tech industries.
Donald Trump has long criticized clean energy subsidies as “expensive, unnecessary, and harmful to business,” but critics of this policy reversal claim the motivation is politics. Trump made a campaign promise to reverse Biden’s Inflation Reduction Act and he has been outspoken against the “Green New Deal.” Trump has also loudly claimed that the climate change is a hoax.
Trump and his followers have complained that supporting clean energy is government overreach. Meanwhile the administration has become a champion of the fossil fuel industry and is promising to bring back coal as a popular energy source.
However, by reversing key programs that supported energy efficiency and renewable power, the administration is setting the stage for higher electricity bills this summer, mass layoffs in a fast-growing job sector, and a weakened position for the U.S. in the global energy economy.
The Department of Energy (DOE) Secretary Chris Wright emphasized these cancellations reflect a “thorough and individualized financial review,” with funding now refocused toward initiatives of greater perceived value. The DOE has stated that many of the cancelled grants "failed to advance the energy needs of the American people" and were "not economically viable."
But Trump’s hostility toward clean energy could end the United States' position as a world leader in tech innovation. As the U.S. backs away from clean tech, other countries are surging ahead. China and India, in particular, are expanding their dominance in solar panel manufacturing and battery storage. With fewer incentives to produce green technology domestically, American manufacturing is losing ground just as global demand explodes.
Meanwhile Europe is pulling ahead with its own Green New Deal. Europe is widely recognized as a global leader in clean energy and its progress stems from a combination of aggressive policy targets, major public investment, technological innovation, and a broad political and public consensus on addressing climate change.
There are immediate impacts for American consumers as a result of the loss of federal incentives that help lower home energy costs. Programs like the Home Energy Rebate Program and subsidies for efficient appliances and solar panels were cut or suspended. These initiatives were expected to save families hundreds of dollars annually on electric bills and help them manage rising summer air conditioning costs. Without them, homeowners face higher utility bills just as extreme heat and energy demand surge.
The job losses are also steep. Over 20,000 clean energy workers have already been laid off, with an estimated 40,000 more at risk. Major wind, solar, hydrogen, and battery projects across the country have been paused or canceled—representing over $70 billion in lost investment. These were among the fastest-growing sectors in the U.S. economy and a critical path for middle-class job creation.
This shift also threatens the stability of the U.S. power grid. The rapid rise of artificial intelligence, data centers, and electric vehicles is placing unprecedented stress on electricity infrastructure. Clean energy projects—especially in wind, solar, and storage—are critical to meeting this demand affordably and sustainably. Without them, utilities may rely more on expensive fossil fuels, passing higher costs on to consumers.
Guests:
Nathaniel Keohane is President of the Center for Climate and Energy Solutions. He is an environmental economist.
Brad Townsend is the Vice President for Policy and Outreach at the Center for Climate and Energy Solutions.
"The Source" is a live call-in program airing Mondays through Thursdays from 12-1 p.m. Leave a message before the program at (210) 615-8982. During the live show, call 833-877-8255, email thesource@tpr.org.
This discussion will be recorded on Tuesday, June 24, 2025.
