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American Focus > Blog > Environment > How Elon Musk could end fossil fuel subsidies
Environment

How Elon Musk could end fossil fuel subsidies

Last updated: January 3, 2025 10:53 pm
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How Elon Musk could end fossil fuel subsidies
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President-elect Donald Trump has made bold promises to shake up the federal government, and he has recruited Elon Musk and Vivek Ramaswamy to lead the charge. Together, they will head the Department of Government Efficiency (DOGE) with a goal of slashing $2 trillion from the U.S. budget. This ambitious plan includes cutting one-third of federal spending and reducing the government workforce by 75 percent.

In a statement announcing the creation of DOGE, Trump emphasized that Musk and Ramaswamy will dismantle bureaucracy, slash regulations, cut wasteful expenditures, and restructure agencies. Ramaswamy, in a tweet, assured the public that they will not back down from this challenge.

While this initiative may raise concerns for U.S. environmental policy and the Biden administration’s climate bill, there is a possibility that it could garner support from environmentalists. One potential area of focus for DOGE could be the elimination of fossil fuel subsidies, which have long been a point of contention for environmental advocates.

According to various sources, fossil fuel subsidies in the U.S. amount to billions of dollars annually. Ending these subsidies could not only save the government money but also align with environmental goals by reducing support for an industry that contributes to climate change.

One significant tax break that could be targeted is the deduction for drilling new oil and gas wells. Repealing this provision could generate substantial revenue for the government. Additionally, the elimination of other tax breaks and subsidies for the fossil fuel industry could further contribute to budget savings.

However, there are concerns about the ability of DOGE to successfully address these issues. Critics argue that oil and gas companies will likely lobby to preserve their interests, and that the true cost of these subsidies goes beyond financial incentives. The environmental impact of these industries, including pollution and climate change, is a significant concern that may not fall within the scope of DOGE’s mandate.

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In addition to fossil fuel subsidies, experts suggest that DOGE could also explore other areas of government spending that have environmental implications. For example, the support for corn ethanol fuels, which has been criticized for its environmental impact and use of resources, could be a target for budget cuts.

Overall, the effectiveness of DOGE in addressing these issues remains to be seen. While there is potential for significant cost savings and environmental benefits, it will ultimately depend on the actions taken by Musk, Ramaswamy, and the rest of the department. As they work towards their goal of streamlining the government and cutting spending, the impact on environmental policy will be closely monitored by advocates and policymakers alike.

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