Taxpayers Will Pay Billions in New Fossil Fuel Subsidies for Big Beautiful Bill
3 hours ago
- #climate-policy
- #government-spending
- #fossil-fuel-subsidies
- The Trump administration added nearly $40 billion in new federal subsidies for fossil fuels in 2025, increasing annual subsidies by $4 billion over the next decade.
- The total public money spent on domestic fossil fuels now stands at least $34.8 billion annually, combining new and preexisting subsidies.
- Fossil fuel subsidies have been historically difficult to eliminate, with many tax breaks dating back decades, such as one from 1913 related to drilling expenses.
- President Biden's efforts to phase out fossil fuel subsidies were blocked during negotiations with Senator Joe Manchin, leading to the Inflation Reduction Act, which further subsidized oil-and-gas-friendly technologies.
- Fossil fuel companies spent millions supporting Trump's election, and the administration has pursued deregulation and downplayed climate change, benefiting these industries.
- The One Big Beautiful Bill Act expanded subsidies, including for carbon capture and storage, ironically linked to provisions from the Inflation Reduction Act that Trump opposed.
- Carbon capture subsidies could send over $1.4 billion annually to oil and gas companies, even if the CO2 is used to produce more fossil fuels.
- The report likely undercounts total subsidies due to lack of transparency, and it excludes state/local tax breaks and international financing for fossil fuels.
- Fossil fuel companies also benefit from 'implicit subsidies' by not paying for environmental and health damages caused by their products, estimated at $62 billion annually in a 2021 study.