Trump’s ‘Skinny Budget’ Seeks To Cut Billions Of Dollars In Federal Funding From Renewable Energy Projects

U.S. President Donald Trump’s budget proposes cutting billions of dollars in federal funding from renewable energy projects.

The budget proposes to slash over $15 billion in funding committed to renewable energy, removing carbon dioxide from the air, and other technologies.

It also proposed ending taxpayer handouts to electric vehicle (EV) and battery makers and canceling the Carbon Dioxide Transportation Infrastructure Finance and Innovation Act. “This amount consists of unplanned and unobligated balances, meaning the cancellation would not impact any currently awarded projects,” the budget proposal stated.

The proposal also seeks to cancel $6 billion in IIJA funds for what it calls “wasteful and ineffective EV charger programs.”

It claimed that the Biden Administration spent more than three years implementing these programs, but built only a small number of chargers because it prioritized overregulating and “climate justice” goals.

“EV chargers should be built just like gas stations: with private sector resources disciplined by market forces,” it said.

Meanwhile, the administration has also proposed reorienting the Energy Efficiency and Renewable Energy (EERE) program, putting forward a plan to reduce the funding by $2.57 billion.

“EERE has also been responsible for a slew of unpopular regulations, harmful to Americans in their day-to-day lives, such as banning gas stoves and incandescent light bulbs. This proposal would support technologies that promote firm baseload power and other priorities established in relevant Executive Orders, such as bioenergy,” the proposal stated.

The proposal's highlight was a $163 billion reduction in non-defense spending, 22.6% below current-year expenditures.

Due to its lack of details, the budget has been dubbed the “skinny budget.”

The Office of Management and Budget and the Executive Office of the President said in a release that over the next 10 years, the restraint would generate trillions in savings necessary for balancing the budget.

The Republican-controlled Congress will now be responsible for the crafting of spending legislation.

Meanwhile, the 10-year U.S. Treasury yield rose nine basis points on Friday to 4.316%. The iShares 7-10 Year Treasury Bond ETF (IEF) traded 0.72% lower on Friday afternoon.

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