Manufacturing jobs, electricity prices threatened by House budget legislation

Ceres Senior Director of Federal Policy Zach Friedman issued the following statement today, as the U.S. House of Representatives’ Ways & Means, Energy & Commerce, and Agriculture committees met to mark up their portions of a proposed budget reconciliation bill: 

“Businesses need a stable policy environment and economic certainty in order to restore U.S. manufacturing and invest in cost-effective electricity generation. Unfortunately, the legislation under discussion today does just the opposite, injecting uncertainty and confusion at a pivotal economic moment.” 

“By raising taxes on manufacturers and energy producers, eliminating grant and financing programs that are spurring private-sector investment, and upending standards that are driving innovation in key strategic sectors, this legislation puts the U.S. at severe risk of ceding its global leadership in this century’s most important industries, reducing jobs in manufacturing, and raising costs on Americans’ electricity bills,” Friedman continued. "Ceres and the businesses we work with call on Congress to amend this legislation to maintain the clean economy incentives so they can continue driving private investment across the economy and across the U.S.” 

Ceres has long worked with businesses and investors across the economy in support of maintaining clean energy tax credits and other federal programs, with an active advocacy role in this year’s budget reconciliation negotiations. In March, 80 leading businesses and investors joined Ceres’ flagship advocacy event LEAD on a Clean Economy 2025, including Carrier, Danone, DHL, dsm-firmenich, Ecolab, Ford Motor Co., Heirloom Carbon, HASI, Holcim, IKEA US, Lucid, Lutron, Michelin, Schneider Electric, and Siemens. They took to Capitol Hill to showcase the economic, energy, and geopolitical benefits of the tax credits in 100 meetings with GOP lawmakers and the White House. Companies returned to Capitol Hill for follow-up meetings in April and will again later in May. 

Amid the advocacy meetings, many key Republican lawmakers have publicly indicated support for maintaining clean energy tax credits. Days after LEAD, 21 House Republicans released a letter to Ways & Means Chairman Jason Smith emphasizing the need for policy certainty and the economic benefits the credits have brought to their districts. And in April, four GOP members of the U.S. Senate issued their own letter cautioning against repealing tax credits that boost U.S. manufacturing, reduce energy prices, and provide policy certainty for businesses. 

Clean energy tax credits have a long history of bipartisan support. Since they were extended and expanded by Congress in 2022, the private sector has capitalized on the long-term policy certainty by investing more than $420 billion into about 750 clean energy projects in the U.S., creating more than 400,000 jobs. Most of the benefits – including new factories, jobs, restored domestic supply chains, and affordable domestically produced electricity – are accruing in states and districts represented by Republicans in Congress.  

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About Ceres

Ceres is a nonprofit advocacy organization working to accelerate the transition to a cleaner, more just, and resilient economy. With data-driven research and expert analysis, we inspire investors and companies to act on the world's sustainability challenges and advocate for market and policy solutions. Together, our efforts transform industries, unlock new business opportunities, and foster innovation and job growth – proving that sustainability is the bottom line. For more information, visit ceres.org.