Renewable energy captured 90% of federal subsidies in 2025
Federal energy subsidies remained heavily tilted toward renewables
Despite expectations that federal support for renewable energy would sharply decline after the Biden administration, a new analysis shows subsidies continued at elevated levels in 2025 — with the vast majority flowing to clean energy projects.
A report from the National Center for Energy Analytics (NCEA) found that renewable energy subsidies accounted for roughly 90% of all federal energy-sector subsidies in fiscal year 2025, totaling nearly $58 billion out of $64.1 billion in overall energy subsidies.
The findings were first reported by Just the News and are based on federal tax and spending data.
Treasury data shows renewable subsidies dominate energy spending
According to the NCEA analysis, federal energy subsidies in 2025 totaled $64.1 billion, primarily delivered through tax expenditures rather than direct spending. The data was drawn from the U.S. Department of the Treasury.
Paul Tice, a senior fellow with the NCEA and a former Wall Street energy analyst, reviewed Treasury data and found that renewable energy, electric vehicles, and energy-efficient equipment received $57.9 billion in federal support during the fiscal year.
That figure dwarfs subsidies directed to oil, natural gas, and coal, which together accounted for just $2.6 billion in tax expenditures in 2025.
The NCEA is affiliated with the Texas Public Policy Foundation, which focuses on energy policy and economic analysis.
Fossil fuel subsidies largely limited to tax provisions
The report emphasizes that subsidies for fossil fuels differ structurally from renewable incentives. While renewable energy subsidies often involve direct production credits and investment tax credits, oil, gas, and coal subsidies are largely tied to longstanding tax provisions, such as depreciation and cost-recovery mechanisms.
According to the analysis, total fossil fuel tax expenditures in 2025 were lower than renewable subsidies alone and far below cumulative renewable incentives over the past three decades.
The report also noted that renewable energy subsidies in 2025 exceeded the combined fossil fuel subsidies issued from 1994 through 2025, highlighting how dramatically federal energy policy priorities have shifted.
Debate continues over market impacts and energy policy
Supporters of renewable incentives argue the subsidies help accelerate energy transition goals, reduce emissions, and lower long-term energy costs. Critics counter that such heavy subsidization distorts energy markets, disadvantages traditional energy producers, and places long-term burdens on federal revenue.
Tice and the NCEA argue the data underscores the need for policymakers to reassess how federal subsidies influence energy reliability, affordability, and market balance, especially as electricity demand grows from AI, data centers, and electrification.
SOURCE: Just The News
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