A new staff report released by Senator Jeff Merkley, Ranking Member of the Senate Budget Committee, details the increased federal subsidies for the fossil fuel industry included in the recently enacted Big, Ugly Betrayal bill. The report, titled "One Big Fossil Fuel Handout: Republicans Further Subsidize the Dirty Fossil Fuel Industry," outlines how these measures will provide an additional $3.5 billion annually in subsidies to oil, gas, and coal companies. This increase brings total annual federal support for the fossil fuel sector to $34.5 billion.
Senator Merkley criticized the legislation and its impact on American families. “In 2024, Donald Trump stood before a room of wealthy oil executives and promised to protect their interests if they spent $1 billion to help elect him. He has now upheld his end of the bargain—slashing health care and food assistance for struggling families in the Republicans’ Big, Ugly Betrayal bill to deliver a massive $3.5 billion tax giveaway per year to the fossil fuel industry. President Trump and Republicans are handing billions of dollars to the corporations responsible for poisoning our planet and profiting off the cost-of-living crisis facing hardworking Americans.
“Once again, Republicans chose to prioritize corporate donors and special interests over kitchen-table issues. Working families will be left footing the bill and feeling the pain,” said Ranking Member Merkley.
Economists and industry experts cited in the report anticipate that household energy bills will rise as a result of this legislation.
Several advocacy organizations have expressed support for making this data public, including League of Conservation Voters, Sierra Club, Public Citizen, Food & Water Watch, Oil Change International, and Friends of the Earth.
Leah Donahey from League of Conservation Voters stated: “Thank you Senator Merkley for releasing this report, which clearly outlines the extreme harms of the Big Ugly Bill and its effects on our public lands and utility costs. By selling off hundreds of millions of acres of public lands, Republicans in Congress prioritized Big Polluters over our communities, our climate, and our well-being. In order to lower costs, protect our public lands and the health and safety of our communities, we must stop these giveaways to the fossil fuel industry and focus on expanding access to affordable, clean energy that is quick to deploy.”
Mahyar Sorour from Sierra Club commented: “Congressional Republicans and President Trump, with the support of the oil and gas industry, passed a budget reconciliation bill that stripped health care from millions of people, increased our energy bills and perpetuates the climate crisis. The oil and gas industry makes obscene profits and receives billions of taxpayer funded subsidies, and with this disastrous bill, Republicans are only exacerbating this crisis. Instead of subsidizing some of the richest companies in the world, we should be holding them accountable for their mess. We are grateful for the leadership of Senator Merkley to call attention to this important issue on behalf of American taxpayers.”
Meghan Pazik from Public Citizen’s Climate Program added: “The massive tax breaks for oil, gas, and coal hidden throughout Trump’s reconciliation bill have increased costs for households across the country. It is unacceptable that the fossil fuel industry reaps record profits while taxpayers are forced to send $34.5 billion in subsidies to a polluting industry. Senator Merkley’s report reveals the true cost of these handouts and exposes the Trump agenda for serving Big Oil over the health, safety, and economic security of everyone else.”
Jim Walsh from Food & Water Watch said: “The findings in Senator Merkley’s important report on massive new taxpayer-funded handouts to the filthy fossil fuel industry are alarming but not surprising. The analysis shows that huge subsidies for fossil fuels are shifting costs to the public while locking in more harmful pollution and climate-killing emissions. It is time for Congress to end these egregious subsidies before they perpetuate even more damage to our health and environment.”
Lukas Shankar-Ross from Friends of the Earth stated: “Big Oil has never had a return on investment quite like Donald Trump. To end polluter handouts we need leaders like Senator Merkley now more than ever.”
Collin Rees from Oil Change International remarked: “Congress's new giveaways to fossil fuel companies in the Big, Ugly Bill are a disgrace. Big Oil and Gas are harming communities and wrecking the planet, and Trump and his followers are choosing to hand these companies tens of billions of dollars of public money. Ending all fossil fuel subsidies and investing in people – not dirty corporations – should be a top priority for our leaders.”
The full staff report can be accessed through Senator Merkley's office or online.
