Ending Market Distorting Subsidies for Unreliable, Foreign-Controlled Energy Sources
This executive order directs federal agencies to stop taxpayer support for certain wind and solar energy projects and to tighten restrictions on foreign-controlled companies involved in those projects. It instructs the Treasury to enforce the termination of specific clean energy tax credits and to limit ways developers can claim those credits, and it directs the Interior Department to review and remove any agency practices that give preference to wind and solar over dispatchable (on-demand) energy sources. Both departments must report back to the White House within 45 days. The stated goals are to reduce what the order calls “market distortions” from renewable energy subsidies, protect national security from foreign-controlled supply chains, and favor reliable, dispatchable domestic energy. If implemented, the order could reduce or slow new wind and solar projects that rely on federal tax incentives, change permitting and leasing treatment on federal lands, and restrict participation by companies deemed foreign entities of concern. That could shift investment toward dispatchable generation (like gas, coal, nuclear, hydro) and raise legal, economic, and energy-sector consequences — including possible litigation, changes in electricity costs, and effects on emissions and renewable-industry jobs.
Key Points
- 1Directs rapid elimination of federal subsidies described as “green” energy subsidies and builds on changes in the referenced One Big Beautiful Bill Act.
- 2Requires the Treasury Secretary, within 45 days, to enforce termination of the clean electricity production and investment tax credits under Internal Revenue Code sections 45Y and 48E for wind and solar projects and to issue guidance preventing manipulation of “beginning of construction” rules and broad safe harbors.
- 3Instructs Treasury to implement enhanced restrictions on entities considered “Foreign Entity(ies) of Concern” under the One Big Beautiful Bill Act within 45 days.
- 4Directs the Interior Secretary, within 45 days, to review Department of the Interior regulations, guidance, policies, and practices and revise any that give preferential treatment to wind and solar compared with dispatchable energy sources.
- 5Requires both Secretaries to submit reports to the President within 45 days describing findings and actions taken; implementation must be consistent with law and available appropriations and does not create new private legal rights.