One Big Beautiful Bill Act & Its Effects on Clean Energy

Written by Claire Shi

The OBBBA (One Big Beautiful Bill Act) or the Big Beautiful Bill was officially passed by Congress on July 4, 2025, marking one of the most sweeping and controversial pieces of legislation in recent U.S. history. Strongly supported and demanded by President Donald Trump, the bill is among the most expensive ever enacted, with projections estimating that it will add approximately $4.1 trillion to the national debt over the next decade.

The United States has been on track to increase the usage of clean energy over the past many decades. However, the passage of the OBBBA threatens to reverse much of this environmental progress at a time when global cooperation and rapid climate action are needed most.

At its core, the OBBBA seeks to reduce and/or eliminate many of the clean-energy tax incentives originally established under the IRA (Inflation Reduction Act), one of the most significant climate policies in U.S. history. By weakening these incentives, the new law effectively promotes greater reliance on fossil fuels like oil, gas, and coal, while discouraging investment in renewable energy infrastructure. This is largely due to 3 main reasons:

1. Government Spending

a. Many lawmakers and officials have voiced concern that the federal

government is allocating too much of its budget toward clean-energy

programs and environmental protection. Supporters of the bill argue that

cutting back these incentives will help reduce federal expenditures and

balance other economic priorities.

2. Foreign/Geopolitical Concerns

1. The OBBBA introduces strict new restrictions on using materials and

components from foreign entities, particularly from China, in clean-energy

projects. Since Chinese companies dominate global markets for solar

panels, batteries, and rare earth materials, these rules will drastically

reduce the number of projects eligible for tax credits. As a result, fewer

renewable energy projects will be completed, and the transition to clean

energy will slow significantly.

3. Political Concerns

1. Some political leaders view the Inflation Reduction Act as overly focused

on climate issues at the expense of other national priorities, such as

defense, industrial production, and domestic infrastructure. By cutting

clean-energy funding, they aim to redirect resources and redefine the U.S. 

energy agenda toward what they call “energy independence,” a term often

used to justify expanded fossil fuel extraction on American soil.

The One Big Beautiful Bill Act risks undermining decades of progress in combating climate change, increasing carbon emissions, and weakening America’s leadership in global sustainability efforts. In reality, for the world, this “beautiful” bill is almost as far opposite to the name as could be.