Controversial Energy Bill Passes Congress, Sparking Fears for US AI Future and Power Costs

A contentious energy bill, backed by President Donald Trump and dubbed the ‘One Big Beautiful Bill,’ was narrowly approved by Congress on July 3, with the House concurring in a 218–214 vote. This landmark legislation is poised to significantly curtail clean-energy tax credits, a move that critics warn could severely impact the nation’s energy infrastructure, drive up electricity costs, and jeopardize America’s competitive edge in the global AI race against China.

At the heart of the bill is a provision to rapidly phase out tax credits for most clean energy projects not operational by the end of 2027, though projects breaking ground by June 2026 receive a slight extension. Analysts from S&P Global Commodity Insights project this accelerated timeline will lead to a 20% reduction in clean-energy installations over the next decade. Industry leaders, including Abigail Ross Hopper, President and CEO of the Solar Energy Industries Association, have vehemently opposed the bill, asserting it will result in job losses, manufacturing closures, and a weakened grid, ultimately ceding technological leadership to nations like China.

Conversely, the fossil fuel industry has praised the bill, with Melissa Simpson of the Western Energy Alliance highlighting its support for oil and natural gas production. The legislation also eliminates tax credits for residential solar projects and electric vehicles, directly affecting consumers and the broader clean energy transition. Experts caution that with surging electricity demand, particularly from massive data centers crucial for AI development, the reduced investment in renewable energy infrastructure could lead to higher household power bills, potential energy shortfalls, and brownouts, thereby undermining the country’s economic and technological competitiveness in a rapidly evolving global landscape.

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