Trump’s 2026 Budget Proposes Cuts to Clean Energy and Climate Programs
President Trump’s proposed federal budget for fiscal year 2026 marks a sweeping shift away from clean energy, slashing funding for renewables, electric vehicles, and climate programs while doubling down on fossil fuel production.
The administration frames the plan as a push to cut waste, lower energy costs, and boost U.S. energy independence. But critics say it risks undoing years of progress on emissions and innovation—particularly as global competitors ramp up their own clean energy efforts.
Major clean energy programs would be eliminated or sharply reduced. That includes rescinding billions from the 2021 infrastructure law and rolling back tax incentives for EVs and energy efficiency. The Department of Energy’s renewable energy division faces a 75% cut, and wind and solar support would shrink dramatically.
Meanwhile, the budget boosts support for fossil fuel production and domestic mining, in line with the president’s “drill and mine” agenda. A January executive order halts all new offshore wind leases, and the Department of Energy’s fossil fuels office would be reshaped to focus directly on increasing output.
The White House argues that many of the targeted programs are politically driven or economically inefficient. But supporters of clean energy warn that the U.S. risks falling behind in the global energy transition.
A Continued Uphill Battle for Green Energy
Massive Cuts to Renewable Energy:
The Department of Energy’s Office of Energy Efficiency and Renewable Energy (EERE) faces a 75% cut. (FY2026 Budget)Electric Vehicle Rollbacks:
The budget eliminates $6B+ in EV charging infrastructure from the Bipartisan Infrastructure Law and ends EV tax credits and manufacturing support. (FY2026 Budget + Executive Order 14154)Offshore Wind Freeze:
A January 2025 executive order halts all new federal offshore wind leases and permits, pausing projects nationwide. (Executive Order 14154)Environment and Climate Cuts:
The EPA budget would drop 55%, cutting environmental justice, clean air/water, and climate science programs. (FY2026 Budget)Infrastructure Law Rollbacks:
Over $15B in unspent green funds—including for carbon capture, CO₂ pipelines, and battery projects—would be rescinded. (FY2026 Budget)Nuclear R&D Narrowed:
The budget reduces funding for non-essential nuclear research, instead prioritizing key projects to support U.S. dominance in advanced nuclear reactor design, fuel development, and the Idaho National Laboratory. (FY2026 Budget)
While the FY2026 budget still needs Congressional approval, it outlines a dramatic pivot in U.S. energy priorities. If enacted, it could reinforce fossil fuel dominance while slowing or reversing clean energy growth at a pivotal moment in global energy transition.
