Former U.S. President Donald Trump has signed an executive order aimed at eliminating federal subsidies for renewable energy sources, including wind and solar, while directing federal agencies to shift policy focus toward dispatchable energy sources such as fossil fuels and nuclear power.
The order, signed on July 7, instructs the Secretary of the Treasury to terminate clean electricity production and investment tax credits for wind and solar projects. It also mandates the implementation of enhanced Foreign Entity of Concern restrictions, as outlined in the “One Big Beautiful Bill Act,” a legislative proposal championed by Trump.
The directive further calls on the Secretary of the Interior to revise existing regulations and eliminate what the order describes as “preferential treatment” for renewable energy projects over conventional energy sources.
“Unreliable wind and solar energy sources displace affordable, dispatchable energy, compromise America’s electric grid, and denigrate the beauty of our nation’s natural landscape,” Trump said in a statement accompanying the order. “Ending the massive cost of taxpayer handouts to unreliable energy sources is vital to energy dominance, national security, economic growth, and the fiscal health of the nation.”
Trump also framed the move as part of a broader push for energy independence and criticized reliance on clean energy subsidies, citing concerns over foreign supply chains. “Reliance on so-called ‘green’ subsidies threatens national security by making the United States dependent on supply chains controlled by foreign adversaries,” the order states.
According to the One Big Beautiful Bill Act, tax incentives for renewable energy projects would end after 2026 for projects that have not yet started construction.
The order signals a potential policy shift should Trump return to office, contrasting with the Biden administration’s support for expanding renewable energy infrastructure to address climate change and promote clean energy development.
