New Report Reveals How Much Republicans’ Big Oil Donors Will Benefit From the Big, Ugly Betrayal Law

New Report Reveals How Much Republicans' Big Oil Donors Will Benefit From the Big, Ugly Betrayal Law

Fossil Fuel Industry Stands to Profit to the Tune of $3.5 Billion Dollars Annually

WASHINGTON, D.C. - Today, U.S. Senator Jeff Merkley (D-OR), Ranking Member of the Senate Budget Committee, released a staff report titled, One Big Fossil Fuel Handout: Republicans Further Subsidize the Dirty Fossil Fuel Industry, exposing the increased federal subsidies for the fossil fuel industry that Republicans included in the Big, Ugly Betrayal bill that was signed into law in July. With the release of this report, the compiled data shows the full extent of the windfall the fossil fuel industry is set to receive in the form of industry-specific tax breaks, deductions, and more.

"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.

Additionally, analysis from economists and industry experts expect that the Big, Ugly Betrayal bill will increase household energy bills:

• By $110 per household in 2026, on average

• Up to $280 by 2035, on average

• Between 9 to 18 percent nationwide, and

• By 10 percent over the next four years in western states.

In short, the report shows that the Republican Big, Ugly Betrayal bill provides $3.5 billion annually in new subsidies to the fossil fuel industry, adding to the existing $31 billion in annual federal subsidies. After the passage of the bill, the fossil fuel industry enjoys a new whopping total of $34.5 billion annually in federal subsidies. This windfall comes from a number of changes, including:

• Specific fossil fuel industry tax credits and deductions that will amount to over $19 billion over the next 10 years.

• Reduced oil, gas, coal, and methane royalty fees that will balloon to over $13 billion over the next 10 years.

• Elimination of emissions reduction enforcement by gutting Corporate Average Fuel Economy standards and canceling waste emissions charges that will result in nearly $2 billion over 10 years.

• Promoting fossil fuel-centric energy policies through the Defense Production Act with a new $1 billion slush fund over the next 10 years.

Advocacy organizations that support the release of this data include League of Conservation Voters, Sierra Club, Public Citizen, Food & Water Watch, Oil Change International, and Friends of the Earth.

"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," said Leah Donahey, Senior Federal Advocacy Campaigns Director, League of Conservation Voters. "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."

"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," said Mahyar Sorour, Sierra Club Director of Beyond Fossil Fuels Policy.

"The massive tax breaks for oil, gas, and coal hidden throughout Trump's reconciliation bill have increased costs for households across the country," said Meghan Pazik, senior policy advocate with Public Citizen's Climate Program. "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."

"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," said Jim Walsh, Policy Director, Food & Water Watch.

"Big Oil has never had a return on investment quite like Donald Trump," said Lukas Shankar-Ross, Deputy Director for Climate and Energy Justice at Friends of the Earth. "To end polluter handouts we need leaders like Senator Merkley now more than ever."

"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." said Collin Rees, United States Campaigns Manager at Oil Change International.

The full report, titled One Big Fossil Fuel Handout: Republicans Further Subsidize the Dirty Fossil Fuel Industry, can be found HERE.

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