Congress Urged to Eliminate Costly IRA Green Subsidies

A new report from the Competitive Enterprise Institute (CEI) argues that Congress has a rare chance to eliminate expensive green subsidies from the Inflation Reduction Act (IRA) during ongoing budget negotiations. The IRA, passed in 2022, committed between $936 billion and $1.97 trillion in taxpayer funds over a decade, ostensibly to create jobs in electric vehicle, solar, and other green industries. However, the report highlights that the IRA’s title is misleading, as it has done little to reduce inflation and instead distorts market competition by favoring politically connected industries.
Ryan Young, CEI senior economist and report co-author, criticized the subsidies for holding back economic growth. "When the IRA picks winners and losers, the winners are electric vehicle companies, solar companies, and other green producers, while the losers are everyone else: taxpayers, entrepreneurs in other industries, and their investors," he said. Co-author Jacob Tomasulo added that IRA subsidies redistribute existing wealth rather than creating new value, resulting in a zero-sum game.
The report urges Congress to eliminate subsidies that harm taxpayers and stifle innovation in other sectors. The opportunity to do so during final budget talks could save taxpayer money while fostering a more competitive and sustainable economy.

Published: 6/26/2025