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Politico
15 hours ago
- Business
- Politico
Decoding the megabill's threat to clean energy
Presented by The fate of hundreds of clean energy projects hangs in the balance as House and Senate lawmakers negotiate just how far they are willing to go to bulldoze Biden-era tax credits ahead of a self-imposed July 4 deadline. In a new POLITICO analysis, Kelsey Tamborrino and Jessie Blaeser identified 794 imperiled wind farms, solar plants, battery storage facilities and other planned clean electricity generation projects located in overwhelmingly Republican districts. The projects, which have not yet begun construction, could be at risk of losing two critical tax breaks if House lawmakers prevail in rolling back Democrats' 2022 climate law. While the Senate's competing version of President Donald Trump's megabill would soften the tax credit assault, hundreds of those projects may still be affected if they don't move fast enough to start construction — a tricky if not infeasible task. How the battle unfurls could have major implications for the nation's ability to tackle its share of climate pollution and meet an anticipated spike in power demand as more data centers and manufacturing facilities come online. Clean energy makes up the majority of new power capacity expected to be added to the nation's electric grid during the next five years, according to a POLITICO analysis of data from the U.S. Energy Information Administration. 'Now is not the time to be taking new generation off the grid, and especially new cheap generation off the grid,' Tom Taylor with research firm Atlas Public Policy said about clean energy. The details are crucialThe House bill aims to fulfill Trump's promise of rolling back what he calls former President Joe Biden's 'Green New Scam' by aggressively sunsetting the clean energy credits. It would require projects to begin construction within 60 days of the bill's passage and start operating by 2028 to qualify — a tall order that could be easily thwarted by factors outside a project sponsor's control, such as permitting or interconnection delays. The House bill offers an exception for nuclear facilities. But EIA's data shows only one project that could potentially be done in time to benefit — rendering the exemption largely inconsequential. The Senate version would keep the credits intact for certain power sources, such as nuclear, geothermal, hydropower and energy storage. For wind and solar, however, it would require projects to begin construction by the end of 2025 to receive the full credit and before 2028 for a partial credit. The slightly more relaxed approach to cutting clean energy credits could spare a minimum of 57 projects, POLITICO found, while still raising questions about the future of as many as 569 wind and solar initiatives. Clean power advocates are warning about the consequences of both versions of the bill, including some Republican lawmakers and GOP-led lobbying groups. But House conservative hard-liners are threatening to tank the bill entirely unless the Senate version more closely mirrors the House draft. (Other sections of the Senate bill are facing additional obstacles from the chamber's parliamentarian, but more on that below). All in all, the megabill battle could make for a dramatic July 4 weekend on Capitol Hill if it doesn't prove too heavy of a lift for Congress to meet Republican leaders' aggressive deadline. Thank goodness it's Friday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Arianna Skibell. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to askibell@ Today in POLITICO Energy's podcast: Alex Guillén breaks down how the Trump administration lost a court battle this week after it tried to roll back hundreds of millions of dollars in Biden-era climate funding. Power Centers Senate parliamentarian: Not so fast, y'all Major energy and climate components of Republicans' party-line bill could fall out in the coming days after the Senate parliamentarian ruled those provisions would run afoul of budget reconciliation rules, writes Andres Picon. The parliamentarian has advised that eight sections would not meet the strict budget-related requirements, including ones that would target Democrats' 2022 climate bill, repeal vehicle emissions rules and amend the National Environmental Policy Act to streamline certain permitting processes. The parliamentarian has yet to review the much-debated Senate Finance portion of the bill that seeks to unravel the Biden-era clean energy tax credits. Trump admin eyes Mojave Desert groundwaterThe Trump administration is contemplating endorsing a contentious proposal to pump ancient groundwater from beneath the Mojave Desert and sell it to parched customers in Arizona, write Annie Snider and Camille von Kaenel. The proposal from the Los Angeles-based water company Cadiz Inc. comes as the Colorado River water supply situation becomes increasingly dire. The waterway's flows have shrunk 20 percent since the turn of the century and climate scientists say it's not unreasonable to think that another 20 percent could be lost in the coming decades. Suits on suits: California AG is sued by his office California Attorney General Rob Bonta's decision to hire an outside law firm to handle a high-profile climate lawsuit has drawn its own legal challenge — from lawyers in his office, writes Lesley Clark. The labor union that represents attorneys in Bonta's office has filed a lawsuit, arguing the Democratic AG should not have enlisted an outside law firm in the state's lawsuit against some of the world's largest oil companies. In Other News Summer's first heatwave: A heat dome is about to bring extreme heat and humidity to more than 200 million people. Scientists warn: The world has three years left to limit warming below a critical threshold. Subscriber Zone A showcase of some of our best subscriber content. Trump's actions to purge the federal workforce and budget threaten to undermine one of his goals: getting wildfires in the United States under control. The Supreme Court opened the door Friday for fuel producers to challenge California vehicle emissions standards in a decision that sparked a stinging rebuke from one of the court's liberal justices. The Trump administration is arguing that Congress' watchdog overstepped when it advised lawmakers they could not nullify California's clean vehicle waivers via the Congressional Review Act. That's it for today, folks. Thanks for reading, and have a great weekend!
The Hill
2 days ago
- Politics
- The Hill
SNAP work requirement carveouts for vets, homeless caught in crosshairs of Trump bill
Congress could soon put an end to work requirement exemptions for veterans, homeless individuals and youth that were in foster care who receive food assistance. While House Republicans preserved the exemptions to work requirements under the Supplemental Nutrition Assistance Program (SNAP) as part of their broader package to advance President Trump's tax cut and spending priorities, Senate Republicans omitted the key language in their version of the bill. The exemptions were initially negotiated as part of a bipartisan deal two years ago. The GOP-led Senate Agriculture Committee confirmed the provision's absence would mean the exemptions would no longer be retained for members of the three groups. The move has drawn little attention on both sides of the aisle so far, as other pieces of the Republicans' megabill take center stage, including significant changes to Medicaid and what some estimates have projected as a multitrillion-dollar tax package. Even multiple GOP members of the Senate committee that produced the text say they intend to press for more information about the potential change before the upper chamber votes on the bill. Senate Agriculture Committee Chair John Boozman (R-Ark.) said Wednesday that 'everybody ought to be treated the same' when asked about the matter. A Senate Republican aide also noted that individuals who aren't 'able-bodied' wouldn't 'have to meet those requirements' under the Senate plan. Congress had previously agreed to temporary changes to work requirements for SNAP in 2023 as part of a bipartisan deal to cap annual federal spending and raise the nation's debt limit. That included measures carving out exemptions through September 2030 for individuals experiencing homelessness, veterans, and young adults who were in foster care at the age of 18. In a statement on the matter last Friday, the Senate committee said Republicans are working 'to encourage greater independence through work and training opportunities.' However, it noted its plan would still allow for 'individuals who are physically or mentally unfit for employment are not required to meet the 20 hours per week work requirement whether in those groups or not.' The decision comes as Republicans in both chambers are working to root out 'waste, fraud and abuse' in what some have described as a 'bloated' government program that has seen its spending climb over the years. Other notable changes Republicans are seeking to make to SNAP include requiring states to cover some of the cost of benefits and front a greater share of administrative costs for the program, as well as limiting the federal government's ability to increase monthly benefits in the future. The Senate Agriculture Committee estimates its plan will yield 'an approximate net savings of $144 billion' in the coming years, with Republicans' proposal requiring states to cover some SNAP benefits costs estimated to account for a significant portion of the projected spending reductions. The plan is part of a larger pursuit by the party to find measures to reduce federal spending by more than a $1 trillion over the next decade that can ride alongside an extension of Trump's 2017 tax cuts and other tax priorities. Democrats have come out in staunch opposition to the evolving proposal that is being exclusively crafted between House and Senate Republicans. 'The Republican bill takes food away from vulnerable veterans, homeless people and young adults who are aging out of the foster care system and may not know where their next meal is coming from,' Rep. Angie Craig (Minn.), top Democrat on the House Agriculture Committee, said in a statement on Wednesday. 'Republicans want to make these cuts to food assistance to fund new tax breaks for people who are already wealthy and large corporations,' she added. Some experts are also sounding the alarm. 'It is a huge deal. These groups were carved out for a reason. They are vulnerable for a reason,' Kyle Ross, a policy analyst for Inclusive Economy at the left-leaning Center for American Progress, said, adding the exemptions apply to 'different populations with their own special set of circumstances.' 'There are an estimated 1.2 million veterans receiving SNAP, and veterans are more likely to live in a food insecure household than nonveterans, so they're really more likely to be in need of some food assistance,' he said, while also pointing to barriers homeless individuals and those aging out of foster care face in the job market. But others have argued against the need for the special carveouts. Angela Rachidi, senior fellow at the right-leaning American Enterprise Institute (AEI), described the 2023 spending caps deal as 'a political compromise,' noting that Republicans had also secured increases to the age threshold for SNAP as part of the deal under the Biden administration. Some hardline conservatives had also been critical of the deal at the time, while pointing to SNAP's exemptions. 'Many states would exempt people anyway because of mental health issues and you don't always necessarily have to have a doctor's note for it,' she said, while also arguing there wasn't 'anything unique about those populations that make them not capable of work.' She added that doing away with the carveouts could help lessen states' burden by removing 'another level of screening.' 'They don't have to assess somebody for their veteran status or foster status, and they would assess them anyway for their shelter status,' she said, while suggesting from a 'bureaucratic perspective, it actually might make it easier.' At the same time, Lauren Bauer, a fellow in Economic Studies at the Brookings Institution, pointed to the added strain states could face if other proposals from Republicans to increase states' cost share of the program's benefits and administrative cost also take effect. 'What the bill also does is, on both sides, you know, reduces the support that the federal government gives to states to administer the program and identifying and validating exemptions, the health exemptions, etc. is very expensive,' Bauer said. 'And administering work requirements is also very, very expensive, because it is onerous not only on the SNAP participant, it's onerous on the state who is managing the program,' she added.
3 days ago
- Business
Trump tax bill would widen deficits by $2.8T after factoring in economic impacts, CBO says
WASHINGTON -- President Donald Trump's tax cuts package would increase deficits by $2.8 trillion over the next decade after including other economic effects, according to a fuller analysis of the House-passed measure released Tuesday by the Congressional Budget Office. The report, produced by the nonpartisan CBO and the Joint Committee on Taxation, factors in expected debt service costs and finds that the bill would increase interest rates and boost interest payments on the baseline projection of federal debt by $441 billion. The analysis comes at a crucial moment as Trump is pushing the GOP-led Congress to act on what he calls his 'big, beautiful bill." It passed the House last month on a party-line vote, and now faces revisions in the Senate. Vice President JD Vance urged Senate Republicans during a private lunch meeting Tuesday to send the final package to the president's desk. 'We're excited to get this bill out,' said Senate Majority Leader John Thune afterward. Tuesday's report uses dynamic analysis by estimating the budgetary impact of the tax bill by considering how changes in the economy might affect revenues and spending. This is in contrast to static scoring, which presumes all other economic factors stay constant. The CBO released its static scoring analysis earlier this month, estimating that Trump's bill would unleash trillions in tax cuts and slash spending, but also increase deficits by $2.4 trillion over the decade and leave some 10.9 million more people without health insurance. Republicans have repeatedly argued that a more dynamic scoring model would more accurately show how cutting taxes would spur economic growth — essentially overcoming any lost revenue to the federal government. But the larger deficit numbers in the new analysis gave Democrats, who are unified against the big bill, fresh arguments for challenging the GOP position that the tax cuts would essentially pay for themselves. 'The Republican claim that this bill does not add to the debt or deficit is laughable, and the proof is in the numbers," said Sen. Jeff Merkley of Oregon, the top Democrat on the Senate Budget Committee. 'The cost of these tax giveaways for billionaires, even when considering economic growth, will add even more to the debt than we previously expected,' he said. Marc Goldwein, senior vice president and senior policy director for the Committee for a Responsible Federal Budget, said Tuesday on social media that considering the new dynamic analysis, 'It's not only not paying for all of itself, it's not paying for any of itself.' Treasury Secretary Scott Bessent and other Republicans have sought to discredit the CBO, saying the organization isn't giving enough credit to the economic growth the bill will create. At the Capitol, Mehmet Oz, who heads up the Centers for Medicaid and Medicare Services and joined Vance at the GOP Senate lunch, challenged CBO's findings when asked about its estimate that the bill would leave 10.9 million more people without health care, largely from new work requirements. 'What will an American do if they're given the option of trying to get a job or an education or volunteering their community — having some engagement — or losing their Medicaid insurance coverage?' Oz asked. 'I have more confidence in the American people than has been given to them by some of these analyzing organizations.' Republicans on the Senate Finance Committee unveiled their proposal Monday for deeper Medicaid cuts, including new work requirements for parents of teens, as a way to offset the costs of making Trump's tax breaks more permanent in their draft for the big bill. The Senate's version of the package also enhances Trump's proposed new tax break for seniors, with a bigger $6,000 deduction for low- to moderate-income senior households earning no more than $75,000 a year for singles, $150,000 for couples. The proposals from Senate Republicans keep in place the current $10,000 deduction of state and local taxes, called SALT, drawing quick blowback from GOP lawmakers from New York and other high-tax states, who fought for a $40,000 cap in the House-passed bill. Senators insisted negotiations continue. Bessent said Tuesday that the Senate Republican proposal for the tax cuts bill 'will deliver the permanence and certainty both individual taxpayers and businesses alike are looking for, driving growth and unleashing the American economy.' 'We look forward to continuing to work with the Senate and the House to further refine this bill and get it to President Trump's desk,' he said in a news release. While the House-passed bill exempted parents with dependents from the new Medicaid work requirements, the Senate's version broadened the requirement to include parents of children older than 14, as part of their effort to combat waste in the program and push personal responsibility. The work requirements 'demonstrate that you are trying your hardest to help this country be greater,' Oz said. 'By doing that, you earn the right to be on Medicaid.' The CBO separately released another analysis on the tax bill last week, including a look at how the measure would affect households based on income distribution. It estimates the bill would cost the poorest Americans roughly $1,600 a year while increasing the income of the wealthiest households by an average of $12,000 annually.
Newsweek
3 days ago
- Business
- Newsweek
Florida Tax Changes Explained As $115-Billion Budget Passed
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Lawmakers in Florida have passed the state's 2026 budget, with several tax changes on the horizon once it is signed by Governor Ron DeSantis. The GOP-led state legislature approved a $115.1-billion budget for the next fiscal year, starting July 1, which also delivers $1.3 billion in tax cuts. It took more than six weeks after the scheduled May 2 end of the session for lawmakers to finally agree on the spending plan, with the state Senate unanimously passing the legislation and the state House approving it in a 103-2 vote. "In my knowledge, there's been no other process of a budget like this year," Senate Budget Chair Ed Hooper said. "We are in day 105. We have had shouting matches; we have had finger-pointing with our friends across the rotunda. We've had discussions, but at the end of the day, we sat down and we got a deal." Here is every tax change you need to know about in the Florida budget: Sales Tax Changes The most significant structural reform in Florida's 2025 tax package is the elimination of the 2-percent sales tax on commercial leases. It makes up most of the overall tax cut, earmarked at $904 million. Jeff Brandes, head of the Florida Policy Project think tank, told Newsweek the change is a "long-overdue reform" that will lower the cost of doing business, particularly in high-cost metro areas. "It should've happened years ago," he said. "This change helps small businesses and large employers alike, especially in high-cost metro areas where every percentage point matters." Andrew Latham, content director at told Newsweek the change "doesn't directly pad household wallets unless you're a small-business owner," but it could still "support job retention or slow price hikes if businesses pass along the savings," although this "trickle-down effect is difficult to quantify and varies widely across sectors." Stock image of the Florida State Capitol. Stock image of the Florida State Capitol. GETTY Back-to-School Tax Holiday For everyday families, the most immediately noticeable relief comes from Florida's newly permanent back-to-school tax holiday in August, which waives sales tax on items like clothing, school supplies, and computers. "This now-permanent August back-to-school tax holiday allows families to skip sales tax on clothing, supplies, and computers," Latham explained. "A family with two school-age kids spending $800 total could save about $48. It's a welcome annual break, especially during a high-spend season, but modest in the broader context of a $66,000 average household budget." Brandes said that while seasonal tax breaks are helpful, they are far from transformative. "Tax holidays on back-to-school items and hurricane supplies are politically popular, but they're Band-Aids, not structural solutions," he said. "They help families at the margins, but they don't move the needle on the core issues driving Florida's cost-of-living challenges: housing, insurance, and health care." Disaster Preparedness Tax Holiday Another tax holiday on the books is designed to help Floridians with one of the downsides of living in the Sunshine State: hurricanes. "The disaster preparedness tax holiday, timed for hurricane season, exempts gear like generators and flashlights from sales tax," said Latham. "A household spending $500 could save $30 to $40. It's more than symbolic in a state prone to storms, but still a one-time, event-driven savings." Some key emergency items—such as batteries and tarpaulins—are now permanently exempt from sales tax. "Items such as generators, batteries, and tarps are now permanently exempt from sales tax to encourage disaster preparedness," Chad D. Cummings, CEO of tax planning legal firm Cummings & Cummings Law told Newsweek, saying the measure is "both fiscally and strategically justified in a state regularly affected by hurricanes." However, Cummings also raised concerns about accessibility. "While the benefit is universal, those with lower disposable income may still be unable to take full advantage," and though the holiday is well-meaning, it "does not substitute for more robust statewide resilience planning." What Happens Next The budget awaits the signature of DeSantis, who has the power to veto any part of the proposed legislature.
Chicago Tribune
5 days ago
- Business
- Chicago Tribune
Column: Waukegan loses another firm to Wisconsin
While Gov. JB Pritzker was trying to answer inane questions from congressional Republicans last week, officials in Wisconsin were finalizing a deal to bring a top-notch Waukegan manufacturer to the Badger State. The impending move of Yaskawa America was but one in a series of recent bad jobs news for Illinois. Pritzker was among three Democratic governors summoned before the GOP-led House Committee on Oversight and Reform to defend the state's sanctuary laws for undocumented immigrants. He sparred with committee members, including Illinoisan Republicans Darrin Hood of Dunlap, a suburb of Peoria, and Mary Miller of Oakland, near Charleston, home of Eastern Illinois University. The governor could have used the wasted time — he was asked if he had ever used a woman's bathroom (he didn't think so) or if he supports the terrorist Hamas organization in Gaza (Pritzker is Jewish) during long hours of political theater — to be back home and work to save more than 2,100 Illinois jobs. That's the number that will be disappearing from the Land of Lincoln even before the announcement from Yaskawa that it will be pulling up stakes and moving to Franklin, Wisconsin, southwest of Milwaukee. According to the Illinois Department of Commerce and Economic Opportunity, 14 companies across the state, from Libertyville to Naperville to Momence in Kankakee County, will be furloughing workers. In Libertyville, 133 employees at two Bristol Myers Squibb sites in Innovation Park, off Route 45, south of Winchester Road, will be out of work beginning July 1. The pharmaceutical firm announced the layoffs early last month. Cardinal Logistics Management Corp., a North Carolina-based transportation and warehousing company, has gotten rid of 43 employees in Naperville Momence Packing Co., which makes Johnsonville sausage products, is scheduled to lay off 274 workers beginning Aug. 1. The aging facility's operations will move to other plants in Wisconsin and Kansas. Those are substantial job losses, but it is the Yaskawa move that hurts the most. Once again, Illinois has lost a major company to nearby Wisconsin, one which has been in Waukegan on Norman Drive, off Route 43, just north of Martin Luther King Jr. Drive, since 1998. This is occurring while Wisconsin tourism, mainly supported by Illinoisans, for the third year in a row, set new records in total economic impact, number of visitors, and state and local revenue in 2024. The Wisconsin Department of Tourism says America's Dairyland brought in $25.8 billion from tourism last year. Yaskawa America won't be a tourist. Company officials said late last week the firm plans to invest at least $180 million and create more than 700 new high-paying jobs in Wisconsin. The company manufactures industrial robots, motion control devices, low- and medium-voltage alternating current drives, and solar inverters for numerous industries, including the semiconductor, machine tool, automotive, HVAC, pumping, oil and gas. The firm will consolidate its North American headquarters and training facility from Waukegan into one location in Franklin over the next eight to 10 years. The 800,000-square-foot campus in Franklin will include the Yaskawa America headquarters, training and lab building, as well as manufacturing and packaging facilities. 'We take pride in our cutting-edge technology, our commitment to quality, and our world-class manufacturing, and we look forward to a strong future of growth and innovation in Franklin,' Mike Knapek, chief executive officer of Yaskawa America, said in a statement announcing the move. The company's parent, Yaskawa Electric Corp., based in the northern Japanese city of Kitakyushu, is celebrating its 110th anniversary this year. The corporation has more than 15,000 employees worldwide with 81 subsidiaries and 24 affiliate companies. It has been operating in the U.S. since 1967. 'I am really excited to be celebrating Yaskawa's decision to relocate its headquarters to Wisconsin and expand its footprint here in the Badger State, bringing with them millions of dollars in capital investment in Southeastern Wisconsin and hundreds of high-quality, family-supporting jobs,' Wisconsin Gov. Tony Evers crowed in announcing the firm's move out of Waukegan. Evers said the state has authorized up to $18 million in tax credits contingent upon the number of jobs created and the amount of capital investment during the relocation period. 'Companies from across the globe are choosing Wisconsin to grow and expand because they know we have the best workers making the best products,' Evers added, dismissing Illinois workers, noting Wisconsin is strengthening its 'position as a leader in advanced manufacturing'. Yaskawa joins the roster of Illinois firms which continue to find the grass is greener north of the border. Pritzker and Illinois economic development officials have yet to find a battle plan to counter the corporate exodus. They just seem to wave goodbye as more jobs walk away.
