Trump Spending Legislation Creates $40 Billion in New Fossil Fuel Subsidies

A comprehensive analysis revealed that Trump’s spending legislation created $40 billion in fresh subsidies for oil, gas, and coal companies over the next decade, representing the largest single-year increase in fossil fuel support since 2017. The law dramatically expands carbon capture tax credits that primarily benefit oil producers while cutting incentives for renewable energy. Top Trump oil industry donors including Harold Hamm and Kelcy Warren directly benefit from provisions enabling wilderness drilling, expedited LNG export approvals, elimination of EV subsidies, and dismantling of climate regulations. The subsidies represent direct wealth transfers from taxpayers to fossil fuel companies at a time when climate science demands rapid decarbonization. Industry CEOs have unprecedented policy access, with the spending bill essentially written to their specifications, demonstrating complete regulatory capture where the regulated industry dictates the terms of its own subsidization.