News Brief

May 14, 2025

Republican budget bill looks to cut climate funding, EV credits to pay for tax breaks

House Republicans are looking to slash funding for clean energy programs, including tax credits for buying electric vehicles.

The tax credits of $7,500 for EV purchases included in former President Joe Biden’s Inflation Reduction Act would be slowly phased out in a draft of a budget bill that cleared the House Ways and Means Committee this week.

Other cuts included in bills that passed key committees would rescind funds for a $400 billion Energy Department green bank loan program and funding meant to lower industrial greenhouse gas emissions. The bills also target grants for electric trucks, environmental justice, and reducing air pollution in schools, along with tax credits for wind and solar projects.

Republicans are working to cut programs to fund $5 trillion in tax cuts that would mainly benefit the wealthy and corporations, hoping to pass them all in one package that President Donald Trump has called a “big, beautiful bill.”

However, a handful of Senate Republicans are pushing back on some of the clean energy cuts, however, arguing that some of the technologies have helped meet growing electricity demand and created jobs in their states, according to Politico.

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