WASHINGTON D.C. (July 3, 2025) — Today, the U.S. House of Representatives passed H.R.1., the Republican budget bill, by a vote of 218 to 214 following the U.S. Senate’s 51 to 50 vote passage earlier this week. 

The new law turns back the clock on America’s clean energy leadership, with provisions such as the rapid phaseout of critical wind and solar tax credits and introduction of onerous Foreign Entity of Concern (FEOC) restrictions, rendering many clean energy investments unworkable or uncertain at best. Taken together, these provisions will raise Americans’ electricity bills, eliminate hundreds of thousands of jobs, decimate investments in U.S. manufacturing, and undermine the ability to meet rapidly growing demand for electricity.

Following is a statement from Dr. David Widawsky, Director, WRI US:

“While other countries are benefitting from accelerated investment in the clean energy economy, the U.S. is taking a step backwards.

“H.R.1. will undercut the Administration’s stated goal of ‘unleashing American energy’ and sends a chilling signal to families, businesses and investors alike. Abruptly phasing out clean energy tax credits will raise costs, slow innovation and jeopardize America’s energy security.

“Electricity demand is growing everywhere—and growing fast. The clean energy cuts in this bill will increase costs and constrain supply at a time when demand for electricity is surging. Working families, business owners and local governments will bear the brunt through higher electricity bills, fewer jobs, and reduced energy resilience to extreme weather. Billions of dollars of investment in infrastructure, manufacturing, energy savings will be lost; failure to keep pace with growing energy demand will make brownouts and blackouts more likely; air will become less breathable; and American economic growth will be at risk.

“Fossil fuels alone won’t meet the skyrocketing energy demand from manufacturing, AI, electrification, and increasingly frequent and intense heat waves that prompt more AC usage. But America can create a more flexible, agile, and resilient power system with renewables and grid upgrades. Clean energy sources are better positioned to come online quickly to meet growing electricity needs and spur economic growth. That’s exactly what companies, state and local governments, utilities and families have been counting on, planning for and investing in.

“Many Americans remain committed to a clean energy future—and we expect to see progress from the cities, states and businesses that have become labs for innovation in recent years. While this bill throws up many roadblocks to progress, these innovators can and must continue driving the country’s energy economy forward. Opportunities remain for them to do so through coalition building, providing innovative financing and policy solutions, and facilitating infrastructure development for critical projects that serve their communities.

We simply can’t afford to double down on outdated energy sources and policies. Despite this setback, we are not going to give up the race for the secure, affordable and innovative power system that Americans need – and deserve.”