The first Senate adaptation of President Donald Trump’s “big beautiful” Fiscal Year 2026 budget bill retains the wholesale slashes and clawbacks in “green energy” allocations adopted by the House when it passed its version of the spending plan by a single vote on May 22.
Although some timelines are extended, the draft budget released on June 16 by the Senate Finance Committee largely replicates the House’s terminations of individual tax credits for purchasing electric vehicles, heat pumps, and energy-efficient domestic appliances, and for installing rooftop solar panels.
The senior chamber’s initial stab at the proposed FY26 budget, which the House laid on its table, also eliminates or dramatically scales back decades-old corporate wind and solar subsidies that were expanded under 2022’s Inflation Reduction Act.
It pulls the plug on most of the renewable energy subsidies Trump labeled “the new green scam.”
“This bill prevents an over-$4 trillion tax hike and makes the successful 2017 Trump tax cuts permanent, enabling families and businesses to save and plan for the future,” Senate Finance Committee Chair Sen. Mike Crapo (R-Idaho) said in a statement accompanying the 550-page budget outline.
“It delivers additional tax relief to middle-class families still recovering from record inflation under the Biden administration,” he said.