President-elect Donald Trump and his appointed firebrands Elon Musk and Vivek Ramaswamy are poised to revolutionize the federal government by leading the Department of Government Efficiency (DOGE) with the ambitious goal of slashing $2 trillion from the U.S. budget, a third of all federal spending.
A Potential Game-Changer for the Environment
This move has far-reaching implications for U.S. environmental policy, particularly the Biden administration’s climate bill, the Inflation Reduction Act. While the impact of DOGE’s actions is uncertain, there is a glimmer of hope for environmentalists as the department may target long-loathed fossil fuel subsidies.
Matthew Tejada, a former EPA official, emphasized the contradiction in providing handouts to the oil and gas industry while advocating for environmental protection. The exact amount of these subsidies is contested, ranging from $18 billion to $757 billion, but their elimination could result in significant revenue gains.
Potential Revenue Gains
Several major tax breaks benefit the fossil fuel industry, including deductions for drilling costs and recovery of development expenses. Repealing these provisions could generate billions in additional revenue, though industry lobbying may hinder such efforts.
Mark Jacobson, a Stanford University professor, expressed skepticism about the extent of tax code subsidy cuts and highlighted the industry’s ability to influence policymakers. He stressed that pollution, a significant benefit to companies, falls outside DOGE’s purview.
Challenges and Wishlist
Despite the potential for DOGE to address environmental concerns beyond fossil fuel subsidies, experts like Tejada and Jacobson remain cautious. Tejada pointed to upcoming deadlines and the expiration of Trump-era tax cuts as opportunities for fiscal responsibility, while Jacobson raised concerns about government support for corn ethanol fuels.
In the face of uncertainties, both experts acknowledged the likelihood that DOGE’s impact on environmental issues may be limited. Jacobson expressed doubts about the department’s ability to achieve its ambitious goals, underscoring the entrenched interests at play.
As we navigate this landscape of governmental change, the balance between fiscal responsibility and environmental stewardship hangs in the balance. The decisions made by DOGE will shape the future of U.S. policy and its impact on the environment.