Donald Trump’s return to office in January 2025 has triggered a dramatic shift in U.S. climate policy. His administration immediately froze federal climate funding and purged key agencies like the EPA and DOE, echoing his past skepticism of climate initiatives.
A January 20 executive order halted billions in clean energy investments from the Inflation Reduction Act (IRA) and Bipartisan Infrastructure Law (BIL), stalling $21.6 billion in DOE loans and disrupting solar and EV projects. Despite the IRA creating 300,000 clean energy jobs, 85% in Republican-led districts, Trump’s rollback puts these gains at risk. Funding for low-income solar programs and renewable energy projects on contaminated lands has also been suspended, leaving communities in limbo.
The DOE and EPA have suffered significant staffing cuts, with the DOE’s Loan Programs Office losing 25% of its workforce and the EPA shrinking by 10%. These reductions weaken oversight of emissions regulations and clean energy research, potentially stalling efforts to curb pollution. Analysts warn that without federal support, U.S. clean energy R&D spending, already lagging behind other developed nations, could drop 30%, ceding ground to global competitors like China.
Trump’s push for fossil fuels includes slashing permitting times for oil and gas projects by 50%, opening up more federal land for drilling, and halting renewable projects like offshore wind farms. Rolling back climate policies could increase U.S. greenhouse gas emissions by 24-36% by 2035, reversing the progress made in recent years. Renewable energy expansion is also at stake, solar deployment may fall 25%, and EV sales could drop 35% by 2030, weakening the industry’s growth trajectory.
Despite federal rollbacks, some states are fighting back. California and New York, representing 20% of U.S. GDP, are doubling down on climate commitments, investing billions into clean energy initiatives. Private investment in renewables remains strong, with $188 billion flowing into U.S. clean tech in 2024 alone. However, without federal coordination, the nation risks falling short of its 2035 emissions reduction targets.
Trump’s policies may provide short-term gains for the fossil fuel industry, but the long-term consequences could be severe. Energy costs for households could rise by an estimated $489 annually by 2035 as renewable incentives disappear. Meanwhile, the U.S. risks losing its competitive edge in the $1.7 trillion clean energy market, allowing China and the EU to dominate. For a country that once led in climate technology, this shift could mark a costly step backward.