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.
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
