WASHINGTON -- Republicans on the House Energy and Commerce Committee advanced a measure to repeal a number of clean energy tax credits passed under the Biden administration to help pay for President Donald Trump's forthcoming tax package.
The committee voted along party lines to advance its portion of the budget framework on Wednesday afternoon, which includes measures seeking to secure Trump's campaign promises to make the country energy dominant. Most of the proposals sought to rescind funds from going toward programs passed under former President Joe Biden's Inflation Reduction Act (IRA) and invest some of that money instead in oil and gas drilling.
"The 2024 election sent a clear signal that Americans are tired of an extreme left-wing agenda that favors wokeness over sensible policy and spurs price increases," Committee Chairman Brett Guthrie, R-Ky., wrote in an op-ed on Monday. "This bill would claw back money headed for green boondoggles through 'environmental and climate justice block grants' and other spending mechanisms through the Environmental Protection Agency and Energy Department."
The Energy and Commerce Committee has a wide jurisdiction over domestic policy, particularly relating to energy and public health. The energy and environment section of the budget framework encompassed much of the proposal passed on Wednesday, which will dictate much of how the Energy Department and Environmental Protection Agency operates.
The committee was tasked with finding at least $880 billion in spending cuts to help pay for the $4.5 trillion in tax cut extensions that Republicans hope to approve before the end of the year. With the repeal of IRA subsidies, the committee would secure $6.5 billion in savings, according to Guthrie.
The framework would claw back funds from key green energy programs such as the Greenhouse Gas Reduction Fund, a $27 billion investment that incentivizes the use of clean energy technologies to reduce greenhouse gas emissions, as well as the Methane Emissions Reduction Program, aimed at reducing methane emissions from the oil and gas industry.
The framework seeks to repeal portions of the Clean Air Act, which authorizes the EPA to establish national air quality standards and develop programs for states to maintain those levels.
Notably, the bill would aim to phase out several renewable energy tax credits over the next six years -- a proposal that could be a sticking point for both clean energy friendly Republicans as well as conservatives who want the IRA to be repealed in full immediately upon passage.
A handful of Republicans have warned against repealing those green energy credits in full, warning it could cause a spike in utility costs nationwide. The proposed repeals would specifically target wind, solar, geothermal, hydropower, and biomass energy sources.
Included in those clawbacks is a measure to rescind electric vehicle tax credits, particularly credits tucked into the IRA that offered rewards to those who bought electric vehicles. The House Ways and Means Committee is also set to consider tax credit repeals of electric vehicles to accompany that proposal.
The clean energy rollbacks are part of Trump's larger reconciliation package that encompasses policies on energy, border and national defense, among other things. After the Energy and Commerce Committee portion advances the committee, it will then be compiled with other House committees to craft the final package.
GOP leaders hope to get the package finalized and passed through the House by the end of next week -- an ambitious timeline as there are still some remaining disagreements Republicans must iron out.
Once the reconciliation package is through the House, it will then move to the Senate for consideration -- where some Republicans are already wary about the green energy credits being repealed.
Also tucked into the budget portion passed on Wednesday were substantial cuts to Medicaid and other healthcare programs.
One of the most significant changes proposed in the framework is to implement new work requirements for Medicaid beneficiaries. The bill would require able-bodied adults without dependents to work at least 80 hours a month or complete some other activity such as community service.
The proposal to increase work requirements carves out some exceptions, such as for pregnant women, and would only apply to those who are between 19 and 64 years old. Individual states would be responsible for enforcing work hours.
If the proposed cuts are signed into law, preliminary estimates predict at least 8.6 million people would lose Medicaid coverage over the next decade, with savings reaching at least $715 billion by 2034, according to the Congressional Budget Office.
The legislation would also include new restrictions on how Medicaid funds can be used, including bans on gender transition procedures for children under 18 as well as prohibitions on coverage "for individuals whose citizenship, nationality, or immigration status has not been verified."