Trump enlisted Musk to trim the federal budget. Will this include cuts to fossil fuel subsidies?

President-elect Donald Trump’s plan to cut $2 trillion in federal spending may unexpectedly threaten fossil fuel subsidies, a potential boon for environmental advocates.

Tik Root reports for Grist.


In short:

  • Trump appointed Elon Musk and Vivek Ramaswamy to lead the Department of Government Efficiency, tasked with cutting federal spending by one-third and shrinking the workforce by 75%.
  • The U.S. provides fossil fuel subsidies ranging from $18 billion to $757 billion annually, depending on calculations, which could be targeted amid budget cuts.
  • Environmental experts argue that the largest subsidy is the industry's ability to pollute without full accountability, which DOGE may not address.

Key quote:

“The biggest subsidy is allowing these companies to freeload off our health.”

— Mark Jacobson, Stanford University professor of civil and environmental engineering

Why this matters:

Reducing fossil fuel subsidies could redirect billions to climate initiatives and reduce industry influence, but entrenched interests may resist reforms. The outcome could signal the direction of environmental policy under Trump’s leadership.

Related: Trump administration plans to overhaul Interior Department with budget cuts and policy reversals

A small rooftop solar panel on a tiled roof

Iran war sparks renewables boom as Europeans rush to buy solar, heat pumps and EVs

The war on Iran has become a catalyst for green technology, as Europeans scramble to find less volatile alternatives to oil and gas.
A various headshots of a woman in varying states of emotion

The emotional contradictions of climate messaging

Two new analyses of media and social posts reveal some unexpected twists — climate advocates warn of crisis while offering optimism, and skeptics lean on "science."

A water desalination plant in the desert next to a body of water

What Trump's threat against Iran's desalination plants means for Mideast

U.S. President Donald Trump has threatened to target Iran’s energy infrastructure, including its desalination plants.
A row of wind turbines against a blue sky

Texas saw a $50B future in renewables. Then the political winds shifted

Clean energy brought income to ranchers and to counties buffeted by boom-and-bust oil cycles. Federal policy changes threaten that momentum.
A prison wall with barbed wire and guard towers

Federal trial over insufficient AC in Texas prisons starts

The plaintiffs are asking for the entire Texas prison system to be air-conditioned by the end of 2029 in a trial that is expected to last two weeks.
Vermont State House, Montpelier, Vermont, USA. Vermont State House is Greek Revival style built in 1859.
Credit: jiawangkun/BigStock Photo ID: 71198428

Vermont hits back at Trump’s effort to block ‘climate superfund’ law

The law would make fuel companies help pay for damages caused by climate change. The Trump nadministration argues it’s unconstitutional.

Electrician in yellow-green shirt using a screwdriver while working on an electrical service panel

Many homes already have the power to electrify, study finds

A California power provider shows homes can ditch fossil-fueled appliances without pricey electrical service upgrades after all.
From our Newsroom
Multiple Houston-area oil and gas facilities that have violated pollution laws are seeking permit renewals

Multiple Houston-area oil and gas facilities that have violated pollution laws are seeking permit renewals

One facility has emitted cancer-causing chemicals into waterways at levels up to 520% higher than legal limits.

Regulators are underestimating health impacts from air pollution: Study

Regulators are underestimating health impacts from air pollution: Study

"The reality is, we are not exposed to one chemical at a time.”

Pennsylvania governor Josh Shapiro speaks with the state flag and American flag behind him.

Two years into his term, has Gov. Shapiro kept his promises to regulate Pennsylvania’s fracking industry?

A new report assesses the administration’s progress and makes new recommendations

silhouette of people holding hands by a lake at sunset

An open letter from EPA staff to the American public

“We cannot stand by and allow this to happen. We need to hold this administration accountable.”

wildfire retardants being sprayed by plane

New evidence links heavy metal pollution with wildfire retardants

“The chemical black box” that blankets wildfire-impacted areas is increasingly under scrutiny.

Stay informed: sign up for The Daily Climate newsletter
Top news on climate impacts, solutions, politics, drivers. Delivered to your inbox week days.