Trump Signs Executive Order Ending Federal Subsidies for Wind, Solar Projects

In a sweeping shift away from federal support for renewable energy, President Donald J. Trump has signed an executive order to eliminate subsidies for what he called 'unreliable and foreign-controlled' energy sources like wind and solar.

The order directs the Departments of the Treasury and the Interior to promptly enforce provisions of the recently enacted 'One Big Beautiful Bill Act', which repeals key tax credits for clean energy.

Citing concerns over national security, grid reliability, and fiscal responsibility, the order argues that green energy subsidies distort energy markets, increase dependence on foreign-controlled supply chains, and harm the American landscape. The administration claims that ending taxpayer handouts to wind and solar is essential for restoring energy dominance and protecting American interests.

Under the directive, the Treasury Department is tasked with enforcing the repeal of tax credits under sections 45Y and 48E of the Internal Revenue Code, ensuring no backdoor eligibility through 'artificial acceleration' or “broad safe harbors.' Treasury must also tighten rules around the involvement of 'Foreign Entities of Concern' in US energy infrastructure.

Simultaneously, the Department of the Interior is instructed to review and revise any regulations that give preferential treatment to wind and solar projects over dispatchable energy sources like coal and gas.

Both departments are required to submit implementation reports to the President within 45 days.

The order does not create any enforceable rights and is to be implemented in accordance with existing laws and budgetary constraints.

While the move is expected to be praised by fossil fuel advocates and segments of the manufacturing lobby, it has already triggered backlash from climate policy experts, clean energy investors, and environmental groups, who warn it could jeopardize America’s clean energy transition and cede global leadership in renewables.