President Donald Trump signed an executive order on July 7, 2025, directing federal agencies to eliminate subsidies and tax incentives for wind, solar, and other renewable energy sources, claiming these measures compromise energy security and impose unfair costs on taxpayers.

The executive order instructs the Treasury Department to enforce the termination of clean electricity production and investment tax credits, specifically targeting wind and solar facilities, within 45 days following the enactment of the proposed One Big Beautiful Bill Act. The directive also calls for heightened scrutiny of renewable energy supply chains involving foreign entities considered to pose national security concerns.

"For too long, the federal government has forced American taxpayers to subsidize expensive and unreliable energy sources like wind and solar," the order stated. "Ending the massive cost of taxpayer handouts to unreliable energy sources is vital to energy dominance, national security, economic growth, and the fiscal health of the nation."

Additionally, the order instructs the Department of the Interior to conduct a swift review of current policies that might grant preferential treatment to renewable energy projects, directing the agency to eliminate any such biases in favor of wind and solar facilities.

The directive aligns with Trump's agenda, which aims to reinforce traditional energy sectors such as coal, oil, and natural gas, framing renewables as economically burdensome and geopolitically risky. Advocates of renewable energy immediately criticized the order, highlighting potential negative environmental and economic consequences.

Treasury and Interior departments have been mandated to submit reports to the White House within 45 days detailing the actions taken to comply with the executive order.

Opponents argue the order could destabilize investment in renewable energy and undermine climate commitments, while supporters assert it will boost domestic energy production and reduce reliance on foreign-controlled supply chains.

Legal experts anticipate potential challenges to the executive order, suggesting that lawsuits could arise from renewable energy companies, environmental advocacy groups, and state governments that have made significant investments in renewable energy infrastructure. These challenges could argue that the order violates established environmental policies, undermines statutory obligations related to climate action, or exceeds presidential authority under existing laws.

Courts may be asked to evaluate whether the order adheres to requirements under the Administrative Procedure Act, particularly if it is found to lack sufficient justification or proper public consultation."