The Trump administration has already added nearly $40 billion in new federal subsidies for oil, gas, and coal in 2025, a report released Tuesday finds, sending an additional $4 billion out the door each year for fossil fuels over the next decade. That new amount, created with the passage of the One Big Beautiful Bill Act this summer, adds on to $30.8 billion a year in preexisting subsidies for the fossil fuel industry. The report finds that the amount of public money the US will now spend on domestic fossil fuels stands at least $34.8 billion a year.
The increase amounts to “the largest single-year increase in subsidies we’ve seen in many years—at least since 2017,” says Collin Rees, the US program manager for Oil Change International, an anti-fossil fuels advocacy organization, and author of the report.
The US has been subsidizing fossil fuel production for more than a century. Many of the tax subsidies logged in the report—including a tax break passed in 1913 that allows companies to write off large amounts of expenses related to drilling new oil wells—have been on the books for decades.
Fossil fuel subsidies have proven notoriously difficult to undo, even with a determined administration. After campaigning on ending tax breaks for Big Oil, President Joe Biden’s 2021 budget pledged to raise $35 billion over ten years by eliminating certain fossil fuel subsidies; one of his first executive orders tasked agencies with getting rid of those subsidies. (“I don’t think the federal government should give handouts to Big Oil,” he said at a press conference announcing the order.)
But the phaseouts of these subsidies were nixed during climate legislation negotiations with then-senator Joe Manchin of West Virginia, who was the key swing vote in the Senate at the time and a recipient of fossil fuel money with lengthy ties to the coal industry. Meanwhile, the Inflation Reduction Act—the resulting compromise between Manchin and Democratic leadership, which was passed in August of 2022—gave additional boosts to the fossil fuel industry in the form of subsidies for oil-and-gas-friendly technologies, like carbon capture and storage and certain types of hydrogen made with natural gas.
“What happens is you have these policies in place, and then you have a constituency that strongly advocates and lobbies for them, it becomes harder and harder to unwind them, which I think is the situation that we’re in today,” says Matthew Kotchen, a professor of economics at Yale University, who was not involved in the new analysis.
That cycle is continuing in the new administration. Fossil fuel companies spent millions of dollars getting Trump elected last year; one report from the advocacy group Climate Power puts the total number at $445 million. Those companies are seeing benefits as the administration pursues an aggressive deregulatory agenda, hobbles renewable energy projects, and downplays the importance of climate change. The Wall Street Journal reported Sunday that the president has taken to calling oil CEOs following their appearances on TV.