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Soon after he took office, President Donald Trump issued an executive order declaring a 鈥渘ational energy emergency.鈥� Expanding U.S. energy infrastructure and increasing power production was crucial for both the economy and national security, he argued, and he promised to unleash fossil fuels, reduce bureaucratic barriers to new projects, and invest in next-generation nuclear and geothermal power.

To supporters, the moves marked the sort of 鈥淎merica First,鈥� forward-looking energy policy needed to meet what most analysts say will be a jump in electricity demand over the next decade. Although the United States currently produces more than enough energy to cover its needs, the rise of data centers, artificial intelligence, and electric vehicles and heating systems is expected to spike demand and stress the existing power grid.

But in recent months, there has been a growing worry on both sides of the aisle that the administration 鈥� and, more recently, the Republican-controlled House of Representatives 鈥� aren鈥檛 achieving an 鈥渁ll of the above鈥� energy policy. Instead, they appear to be undermining a renewable-power sector that analysts say has not just improved America鈥檚 energy portfolio, but is also a big part of a nascent U.S. manufacturing revival.

Since August 2022, when a Democratic-controlled Congress passed a budget bill investing in green energy technologies, businesses in the sector have announced nearly 400 new factories and other projects. According to E2, a nonpartisan energy group, the law sparked $132 billion in private sector investment, as well as 123,000 new jobs 鈥� primarily in Republican-leaning districts. But since January, companies involved in next-generation energy systems have canceled or delayed planned investment worth some $14 billion, the group found 鈥� in large part because of fears about what both the administration and Congress might do to the industry.

鈥淏iggest economic boom鈥� in a generation

Indeed, since it came into office, the administration has taken aim at solar and wind power, as well as electric vehicle infrastructure projects, calling the industries part of a 鈥済reen new scam鈥� 鈥� a twist on the Democratic 鈥淕reen New Deal鈥� efforts to combat climate change. In recent months, the administration has blocked wind power projects, canceled clean energy grants, and paused renewable energy leases on federal land.

Although it has voiced support for both nuclear and geothermal power technology, it recently canceled grants worth $3.7 billion to help companies build out demonstration projects for everything from carbon capture technology to decarbonized cement manufacturing. And in the House version of the 鈥淥ne Big Beautiful Bill鈥� 鈥� the budget package now being considered in the Senate 鈥� legislators eliminated a slew of tax incentives and other support for renewable energy products.

According to a recent analysis by The Brattle Group, these tax credit eliminations would mean a $520 billion decrease in solar and wind investment before 2035, as well as higher electricity prices for ratepayers across the country.

Some lawmakers see the cuts as a way to pare bloated federal spending. But supporters of clean energy see preserving the programs as a foundation for growth.

鈥淭he most important thing to be focusing on is that we鈥檙e at the beginning of the biggest economic boom in this country we鈥檝e seen in a generation,鈥� says Bob Keefe, executive director of E2. 鈥淲hat鈥檚 happening in the Senate in the next couple of weeks will determine the fate of all of that economic growth. It will determine the fate of whether we have enough electricity to power everything we want to do in this country and whether we can compete with China. And right now, the red lights are flashing.鈥�

Views that span party lines

Climate activists have for years pushed for renewable energy sources to replace fossil fuels, which emit the greenhouse gases that, scientists say, are pushing up Earth鈥檚 temperatures. And many have been dismayed by the administration鈥檚 encouragement of new fossil fuel development, including of coal, arguably the most polluting power source in terms of both air quality and carbon emissions. Many see these Trump policies, combined with a gutting of the federal scientific agencies that measure and analyze the Earth鈥檚 atmosphere and warming, as part of a wholesale dismantling of anything that seems part of climate action.

But enthusiasm for 鈥� and concern about 鈥� clean energy innovation crosses party lines, and encompasses motivations that include cost savings and energy independence as well as the environment.

Earlier this year, the conservative clean energy group ClearPath polled American voters and found that 76% say it is extremely or very important that their representatives in Congress support clean energy. That includes 62% of Republicans.

When John Szoka, a Republican, was first elected to the North Carolina legislature in 2012, he says he figured solar power was 鈥渁 bunch of garbage and only existed because of subsidies.鈥� But he gradually learned how helpful the energy source was, he says 鈥� how it was cheap, fast, and increasingly beneficial for his constituents. Today, Mr. Szoka is the CEO of the right-leaning Conservative Energy Network, which champions 鈥渟ecure, reliable, affordable, clean American energy.鈥�

He says he is enthusiastic about the Trump administration鈥檚 focus on energy prosperity.

鈥淓nergy runs the world; energy runs America,鈥� he says. 鈥淚f we don鈥檛 have enough energy, we have problems.鈥�

But he worries that lawmakers are missing key points about the country鈥檚 energy system. While he supports nuclear power and praises the administration鈥檚 efforts to streamline the innovation of small nuclear reactors, which many see as the next generation of the low-emission power source, he points out that nuclear and geothermal projects are years away from commercialization. He has no problem with gas power, either, but notes that turbine production is already backlogged. The easiest and cheapest power sources to bring on line short-term are solar and wind, along with battery storage, he says.

According to the Federal Energy Regulatory Commission, solar and wind were responsible for nearly 90% of total new U.S. power generation capacity during the first nine months of 2024. The U.S. grid operator that acts most like a free market 鈥� the Electric Reliability Council of Texas 鈥� often uses as much solar, wind, and battery power as it does fossil fuel and nuclear, in large part because it is the cheapest available power.

鈥淲here Washington is missing the point is, we need a lot more energy and we need it now,鈥� says Mr. Szoka. 鈥淚f you just shut down solar and onshore wind, for whatever your reasons are, it鈥檚 not a good plan.鈥�

A letter from House Republicans

Some lawmakers are showing signs they agree. Late last week, 13 Republicans who voted for the 鈥淏ig Beautiful Bill Act鈥� signed a letter asking the Senate to modify some of the provisions that would hurt the clean energy industry.

鈥淲e believe the Senate now has a critical opportunity to restore common sense and deliver a truly pro-energy growth final bill that protects taxpayers while also unleashing the potential of U.S. energy producers, manufacturers, and workers,鈥� they wrote.

But there are signs that rhetoric around renewable energy has impacted mainstream Republican attitudes. Pew Research Center polling released last week shows a decline in Republican support for solar and wind, with 61% of Republicans saying they favor more solar power, down from 84% in 2000, and 48% favoring more wind power, down from 75%. To Daniel Bresette, president of the nonprofit Environmental and Energy Study Institute in Washington, this is part of why the decarbonization of American energy may well be slowing.

鈥淚t鈥檚 a story of a transition that was happening 鈥� and started happening more and faster and then had tail winds 鈥� and now it鈥檚 facing headwinds,鈥� he says. 鈥淚 didn鈥檛 find what has happened [with the reconciliation bill] in the House all that surprising,鈥� he says. 鈥淚 think there are other priorities.鈥�

The challenge of uncertainty

Luke Bolar, who leads external affairs for ClearPath, says that he is encouraged by the administration鈥檚 focus on next-generation nuclear and geothermal 鈥� potential baseload power sources that his organization has promoted for years. But he also worries about the impact of the proposed elimination of largely technology-neutral energy tax credits 鈥� as well as proposals in the House that eliminate other financial incentives.

鈥淭o achieve the stated goals of the administration of energy dominance, we need to double our grid in the next couple of decades,鈥� he says. 鈥淲e need to build a lot of everything, and financing those projects is a challenge while keeping energy prices low. And so, tax incentives are effective in that regard.鈥�

So is stability, says Columbia Business School economist Gernot Wagner. Eliminating tax credits that were promised for a decade undermines business planning 鈥� and undermines further innovation.

鈥淚f you鈥檙e a business, the last thing you want is policy uncertainty,鈥� says Dr. Wagner. The House鈥檚 reconciliation bill, he says, seems to have 鈥渧ery little to do with reviving U.S. manufacturing. If anything, it seems the opposite.鈥�