Trump Ends Federal Green Energy Tax Credits Citing Security

President Donald Trump has issued an executive order to accelerate the phase-out of federal tax credits and subsidies for wind and solar energy projects, reinforcing provisions in the recently enacted One Big Beautiful Bill Act. The order directs the Treasury Department to strictly enforce deadlines and tighten eligibility rules to prevent projects from circumventing the subsidy phase-out, with a focus on curbing partnerships with foreign entities of concern, mainly China. Interior Secretary Doug Burgum is tasked with eliminating preferential treatment for wind and solar on federal lands, aligning their regulations with those of fossil fuel projects. Trump justified the move by citing national security risks linked to reliance on foreign supply chains and concerns about the reliability and cost of renewable energy, labeling wind and solar as expensive and unreliable. This aggressive rollback challenges the green energy policies established under President Biden's 2022 Inflation Reduction Act, which Trump and Republicans opposed, and has already caused market reactions with declines in renewable energy stocks. Industry groups warn that the abrupt policy shift could disrupt the renewable energy sector, which recently announced record capacity additions but now faces tighter scrutiny and increased compliance costs.