Trump Signs Order to Phase Out Wind and Solar Subsidies

U.S. President Donald Trump has signed an executive order that will begin phasing out federal tax credits for wind and solar energy projects, marking a major policy shift for the renewable energy sector. The order directs the Treasury Department and the Department of the Interior to enforce and review rules under the One Big Beautiful Bill Act, which was passed by Congress and signed into law last week.

In the executive order, President Trump criticized renewable energy sources, describing them as unreliable, expensive, and harmful to the environment and the country’s electric grid. He also expressed concern that wind and solar industries rely heavily on supply chains controlled by foreign countries.

Under the new rules, tax incentives for renewable energy will effectively end after 2026 for projects that have not started construction by then. Any new wind or solar project that begins after that deadline must be completed and placed in service by the end of 2027 to receive the remaining benefits. This is a significant change from the previous policy, which allowed developers to claim a 30% tax credit through 2032.

The executive order instructs the Treasury Department to carry out the phaseout of these subsidies, while the Interior Department is tasked with reviewing policies that give preference to renewable energy over more traditional sources such as coal, oil, and natural gas. Both agencies must report back to the White House within 45 days outlining the steps they have taken to implement the order.

Supporters of the decision argue it will strengthen the country’s energy independence and protect American jobs in conventional energy industries. However, critics warn that reducing incentives could slow the growth of clean energy and make it harder to address environmental concerns.

The move underscores the Trump administration’s commitment to prioritizing traditional energy resources over renewable alternatives, continuing a broader effort to roll back policies that have supported wind and solar development in recent years.