The “Big and Beautiful” tax and spending bill, passed by the U.S. Senate on July 1, continues to stir controversy. According to reports from U.S. media, some provisions of the bill will not only end government support for the clean energy industry, such as wind and solar power, but also impose new taxes on future projects within the sector. Industry groups have stated that this move could “destroy” the U.S. clean energy sector, with the solar and electric vehicle industries being the most affected. Experts believe that the “Big and Beautiful” bill will cause the U.S. to lose its global competitive advantage in this field.
“Trillions of dollars in investments wiped out in an instant”
“This is truly shocking!” Jason Grumet, CEO of the American Clean Power Association, said in an interview with The New York Times. The shockwaves brought by the “Big and Beautiful” bill were far greater than expected. “Shortly after the Senate released the bill, around 2:30 a.m., my phone started ringing non-stop. Everyone was saying, ‘Can you believe this?'”
On July 2, Newsweek reported that as Congress is set to make a final vote on the highly controversial “Big and Beautiful” bill, a new analysis paints a contentious future: the bill could endanger up to 4,500 clean energy projects across the U.S., threaten hundreds of thousands of jobs, and force American households to bear additional energy costs totaling billions of dollars annually over the next five years.
The study, conducted by the California-based non-governmental organization Energy Innovation and Wellesley College, also revealed that since January 20, when Trump began his second presidential term, over 20 large clean energy projects across the U.S. have been canceled or scaled back, with $21.6 billion in private investment affected. If the bill is enacted, by 2030, the U.S. is expected to lose 840,000 jobs closely tied to the renewable energy, clean tech manufacturing, and electric vehicle industries.
“The data we track shows that this is the most severe period of clean energy project cancellations, delays, and reductions since 2010,” said Jay Turner, a professor of environmental studies at Wellesley College. The number of stalled projects is more than five times greater than in other periods. These frozen investments once held the promise of positioning the U.S. within the fastest-growing industries globally.
“This is just awful,” said Robbie Orvis, Senior Director of Modeling and Analysis at the clean energy think tank Energy Innovation, in an interview with Newsweek. “This bill could lead to hundreds of billions of dollars in investments disappearing in an instant, and it would severely damage the long-term competitiveness of U.S. manufacturing.” The report noted that this bill would undoubtedly be a blow to the U.S. clean tech industry, which was already struggling during Trump’s first term due to a slowdown in investment.
Analysts pointed out that the clean energy industry incentives provided by the Inflation Reduction Act passed under Biden have already facilitated at least $321 billion in private energy and manufacturing investments, spurring explosive growth in the solar, wind, and battery industries in the U.S. According to data from the Energy Information Administration, these industries are expected to account for over 90% of the new electric capacity added in the U.S. in 2024.
Currently, the impact of the bill varies across states, with those that have heavily invested in the clean energy industry facing the most severe consequences. For instance, in South Carolina, analysis shows that the state’s annual energy bills will increase by $770 million due to the “Big and Beautiful” bill. Turner pointed out that the “battery belt” regions in the Midwest and Southeast, which were once the core areas for rapid battery manufacturing growth, are now at the forefront of this impact and will be hit hardest. “These investments were originally hoped to position the U.S. in one of the fastest-growing industries globally,” Turner said. “However, in the past six months, this is the area where we have seen the most significant slowdown.”
Electric Vehicle Industry May Face Devastating Impact
The “Big and Beautiful” bill delivers a particularly sharp and severe blow to the U.S. electric vehicle industry. According to a report from CNBC on July 2, the core provisions of the bill include: the complete elimination of the $7,500 federal tax credit for consumers purchasing or leasing new electric vehicles, and the $4,000 subsidy for purchasing used electric vehicles, effective from September 30 this year. Forbes also revealed that the subsidy for automakers that have sold more than 200,000 qualifying electric vehicles (which includes almost all major manufacturers like Tesla, GM, and Ford) will be phased out by the end of 2025. Additionally, a controversial clause has been added—requiring electric vehicle owners to pay an extra $250 annual highway usage fee. It is estimated that this fee would be more than three times the fuel tax burden on owners of conventional gas-powered vehicles.
This combination of policies is a severe blow to the U.S. electric vehicle market, which has relied on tax incentives to drive sales. A recent study cited by National Public Radio (NPR) from Princeton University stated that the removal of tax credits and the weakening of emission standards would result in a 40% drop in U.S. electric vehicle sales by 2030 compared to the current policy. Levi McAllister, an attorney at Morgan Lewis, believes that electric vehicle subsidies have become a ready “sacrificial pawn” in the budgetary battle.
On July 2, USA Today compared the price fluctuations in the electric vehicle market caused by the “Big and Beautiful” bill for consumers. Taking Tesla’s best-selling Model Y as an example, in the first quarter of 2025, the model is expected to sell 64,051 units in the U.S. market. Without subsidies or incentives, the starting price for the 2026 Model Y will be $44,990. However, with subsidies, its price drops to $37,490.
According to NPR, the credit incentives provided by the Inflation Reduction Act have spurred billions of dollars in new manufacturing projects and brought numerous job opportunities to the electric vehicle industry. U.S. automakers had previously expected that Trump’s election would lead to significant changes in electric vehicle policies. Many mainstream automakers have warned that the removal of subsidies and tax credits will only exacerbate affordability issues for consumers and put some manufacturing investments at risk.
After the contents of the bill were announced, Tesla CEO Elon Musk launched a fierce attack on it via the social media platform X, calling the bill “absolutely insane and destructive.” “It pours money into outdated industries while severely harming future-facing industries,” Musk warned. “The ‘Big and Beautiful’ bill will destroy millions of American jobs and deal a tremendous blow to national strategy.”
“The Biggest Job Killer in U.S. History”
He Weiwen, Director of the China-Europe-US Research Center at the China International Chamber of Commerce, stated that the policy adjustments targeting the clean energy industry reflect the Trump administration’s consistent stance on energy development, which leans more toward traditional energy. This was evidenced when Trump declared a “national energy emergency” upon taking office, abolished a series of energy support policies from the Biden administration, and proposed measures like “unlocking America’s energy potential.” He Weiwen believes that the energy provisions of the “Big and Beautiful” bill go against the global green energy transition and are a blow to both U.S. and global new energy development.
On July 2, CBS reported that according to analysis from the American Clean Power Association, the latest content of the “Big and Beautiful” bill eliminates tax incentives for wind and solar power under the Biden administration and requires that if a certain percentage of materials and equipment for wind and solar projects come from “banned countries,” a tax must be paid. The report stated that since China currently dominates the global clean energy industry’s supply chain, this measure could affect many U.S. companies. The additional taxes imposed on these projects are expected to increase consumer energy costs by 8% to 10%, and by 2036, U.S. clean energy companies could face an extra tax burden of $400 million to $7 billion.
“This will cause a large number of companies to shut down, and many people will lose their jobs,” warned Mike Carr, Executive Director of the American Solar Manufacturers Alliance, representing 15 companies and 6,100 industry workers, in an interview with The New York Times. “The entire industry will suffer a devastating blow.” Since the bill will quickly phase out existing federal tax subsidies for wind and solar power by 2027, many companies have stated that this will derail hundreds of ongoing projects and jeopardize billions of dollars in planned manufacturing facilities. Carr admitted that he told lawmakers, “This bill will hand the entire industry over to China starting in 2027.”
Regarding the impact of the “Big and Beautiful” bill on the U.S. clean energy industry, a warning has been issued by the American think tank Rhodium Group. If the bill is passed, up to 72% of the wind and solar projects originally planned for the next decade in the U.S. will face cancellation. This will not only drive up electricity prices—analyses show that in South Carolina alone, residents’ annual energy bills will increase by $770 million—but also undermine the U.S.’s position in the global new energy competition.
CBS cited a recent report from the International Energy Agency, which noted that global energy investments have undergone a structural shift, with most funds now flowing into clean energy and electrification rather than new fossil fuel projects. Investments in clean technology and grid development have surpassed $2 trillion. Robbie Orvis from Energy Innovation, a clean energy think tank, expressed concern that if the U.S. deviates from clean energy policies at this crucial moment, it could forfeit its share of the global market.
The report also mentioned that, unexpectedly, not only renewable energy companies and manufacturing unions strongly oppose the “Big and Beautiful” bill, but some conservatives are also skeptical. Longtime advocate for the elimination of green subsidies, conservative commentator Alex Epstein, took to social media to state that he “clearly does not support this approach.” The U.S. Chamber of Commerce quickly voiced its opposition as well. Executive Vice President Neil Bradley said, “Taxing energy production, whether it’s oil, gas, or renewable energy, is never good policy. At a time when U.S. electricity demand is set to surge, this tax will only exacerbate inflation and should be immediately repealed.” North America’s building trades unions issued a strongly worded statement, calling the bill “the largest job killer in U.S. history.”
Moker, founder of True Lithium Research, stated that the contraction of the “Big and Beautiful” bill will have a far-reaching impact on the U.S. clean energy sector: “If the U.S. reduces investment in wind, solar, and other new energy fields, causing technological progress to slow down and eventually fall behind Europe and China, it will affect the development of its industrial chain.” He further analyzed, “The electrification and intelligence of vehicles is an inevitable direction for future development and a key foundation of the Fourth Industrial Revolution. The U.S. established its economic dominance through the second and third industrial revolutions, but if it falls behind in the Fourth Industrial Revolution, it could have a turning point impact on the nation’s future.” The bill’s suppression of the electric vehicle and new energy industries could lead to a decline in the U.S.’s competitiveness in these fields. Moker told reporters, “As global competition in industries like electric vehicles heats up, with China and Europe aggressively advancing related industries, U.S. companies like Tesla could face a ‘cliff’ in domestic policy, potentially affecting their ability to continue leading globally.”
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