US Taxpayers Will Pay Billions in New Fossil Fuel Subsidies Thanks to the Big Beautiful Bill

A recent report reveals that the Trump administration has introduced nearly $40 billion in new federal subsidies for oil, gas, and coal in 2025 through the One Big Beautiful Bill Act, increasing annual fossil fuel subsidies by about $4 billion over the next decade. This addition raises the total federal support for domestic fossil fuels to at least $34.8 billion per year, marking the largest single-year increase in fossil fuel subsidies since at least 2017. These subsidies build on longstanding tax breaks, some dating back over a century, such as the 1913 deduction for drilling expenses, highlighting the entrenched nature of fossil fuel support in U.S. policy. Efforts to reduce fossil fuel subsidies have faced significant political obstacles. Although President Biden initially pledged to eliminate certain fossil fuel tax breaks to raise $35 billion over ten years, these plans were abandoned during climate legislation negotiations with Senator Joe Manchin, a key swing vote with ties to the coal industry. The resulting Inflation Reduction Act of 2022