Clean energy advocates have criticized the U.S. budget bill, passed 218-214 by the House, as a major setback for the nation’s energy transition.

The legislation, expected to be signed by President Trump, slashes key tax credits for wind and solar projects, potentially reducing U.S. electricity capacity by 300 GW amid surging demand from data centers and AI. While nuclear, geothermal, and battery storage retained credits, fossil fuel interests welcomed the bill, which boosts oil, gas, and coal production. The American Petroleum Institute praised it for advancing Trump’s “energy dominance” agenda. The bill also mandates new drilling rights and offers tax breaks to coal used in steelmaking. Critics warn it undermines clean energy investment, risking job losses and higher power costs, while shifting the responsibility for renewable energy growth to states and local governments. Supporters argue it enhances energy reliability and economic growth through expanded fossil fuel development.