Trump Signs Order Ending Federal Wind and Solar Subsidies

President Donald Trump signed an executive order on July 4, 2026, to ensure federal tax subsidies for new wind and solar projects remain terminated. This action follows the Working Families Tax Cut legislation and Public Law 119-21, which end the Clean Electricity Production and Investment Credits for facilities placed in service after December 31, 2027.

The order directs the Treasury Department to close loopholes regarding the definition of when construction begins and to tighten restrictions on foreign entities. Simultaneously, the Interior Department must eliminate preferential treatment for wind and solar over dispatchable energy sources. To qualify for grandfathering, projects must prove construction began before July 4 via a strict Internal Revenue Service Physical Work Test.

Energy Secretary Chris Wright supported the measures, arguing that green energy sources are unreliable, consume excessive land and materials, and drive up electricity prices for Americans. The Department of Energy has also begun cancelling loan obligations for these projects. The wind industry has already seen a decline, developing 23 gigawatts compared to an expected 46 gigawatts due to the expiring subsidies.