Elon Musk slammed the US Senate’s new budget bill, calling it “utterly insane and destructive.” He said it would kill jobs and hurt America’s future.
The bill makes big changes to clean energy support. It removes tax credits for wind and solar projects unless they start construction soon and finish by 2027. And those projects must prove they use no Chinese parts—a rule many experts say is too hard to meet.
“This bill will destroy millions of jobs in America and cause immense strategic harm,” Musk posted on X (formerly Twitter). “It gives handouts to industries of the past while damaging industries of the future.”
The latest Senate draft bill will destroy millions of jobs in America and cause immense strategic harm to our country!
Utterly insane and destructive. It gives handouts to industries of the past while severely damaging industries of the future. https://t.co/TZ9w1g7zHF
— Elon Musk (@elonmusk) June 28, 2025
Why Elon Musk Is So Angry
The Senate draft budget bill removes key clean energy tax benefits. These were first offered under the Production Tax Credit and later expanded by the Inflation Reduction Act (IRA). The new version cuts those supports sharply.
It also adds a new tax penalty for renewable energy projects that miss the tight deadline or fail to prove they don’t use Chinese parts. That means many wind and solar companies might lose funding—and fast.
At the same time, the bill gives tax breaks to coal producers and speeds up the end of clean energy manufacturing credits. That could hit green energy investments hard, especially in Republican-led states where many solar and wind jobs exist.
Experts and Green Groups Are Worried
Jesse Jenkins, a top energy researcher at Princeton University, said on X that the bill raises taxes on nearly all wind and solar projects unless they meet “unworkable” requirements.
This is unbelievably bad. I am astonished that the Senate language got WORSE overnight than even the House version. This One Big Horrible Bill will raise energy costs, kill $100s of billions of new investment in energy & manufacturing, make our grid less reliable, increase… https://t.co/aXMlChML9e
— Jesse D. Jenkins (@JesseJenkins) June 28, 2025
Environmental groups are also sounding the alarm. They say the bill will:
- Raise household energy bills
- Push back US climate goals
- Slow power growth just as AI demands more electricity
SAFE, an energy security group, said the US could lose ground to China if this bill passes. China is already leading in clean energy and AI. If the US cuts funding now, China could widen the gap.
“Where the original Senate version was energy stagnation, this is outright energy surrender,” said SAFE’s Avery Ash, according to Reuters.
Fossil Fuel Fans Love It
Not everyone is upset. Fossil fuel supporters are cheering.
Former President Donald Trump said it’s time to end support for renewables. Tom Pyle from the American Energy Alliance said, “If repealing these subsidies will ‘kill’ their industry, maybe it shouldn’t exist in the first place.”
But Musk’s warning cuts deeper. He believes this bill weakens the US just when energy and AI are shaping the future.
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