The Long Game on Trump’s Energy Dominance Plans

COMMENTARY Energy

The Long Game on Trump’s Energy Dominance Plans

Sep 5, 2025 2 min read
COMMENTARY BY
Austin Gae

Research Associate, Energy, Climate, and Environment

Austin is a Research Associate in the Center for Energy, Climate, and Environment at The Heritage Foundation.
U.S. President Donald Trump attends the Pennsylvania Energy and Innovation Summit at Carnegie Mellon University in Pittsburgh, Pennsylvania on July 15, 2025. ANDREW CABALLERO-REYNOLDS / AFP / Getty Images

Key Takeaways

Rolling back regulations that constrict access to affordable and reliable energy is urgent, but the process does not happen overnight.

The same goes for subsidy repeal...scrapping these subsidies will gradually realign energy investment decisions with market factors.

The Trump administration and Congress are unleashing American energy through a whole-of-government approach—an effort that will take time to unfold.

Electricity prices are still increasing, and Democrats are rushing to blame President Trump. However, as Energy Secretary Chris Wright recently pointed out, recent Democratic policies are actually at fault.

That’s why Mr. Trump and the Republican Congress have moved swiftly to roll back those costly regulations, expand the nation’s energy supply and repeal green energy subsidies. But this strategy for energy dominance is a long game.

Consider the Environmental Protection Agency’s proposal to repeal former President Biden’s power-plant rules. Those rules would have forced the retirement of nearly all coal plants and discouraged investment in new natural gas plants in the near future, further constricting the nation’s electricity supply at a time when projected demands are soaring.

Rolling back regulations that constrict access to affordable and reliable energy is urgent, but the process does not happen overnight. Developing sound legal reasoning for the repeal took months. The EPA then opened a public comment period that lasted for 45 days.

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The staff is now reviewing more than 100,000 submitted comments that may take additional months. Even after the repeal is finalized, the EPA will face legal challenges that may delay investment in coal and gas plants until judicial uncertainty is settled.

The expansion of the nation’s energy supply will also progress gradually over time. Aware that energy projects face lengthy timelines, the Trump administration has been moving fast on its approvals so that energy projects can start building sooner.

Most recently, the Interior Department announced a lengthy schedule with 30 oil and gas leases in the Gulf of America and six in Cook Inlet of Alaska between 2025 and 2040. And Interior approved a plan for a Wyoming mine to extract an additional 14.5 million tons of federally owned coal and extend its operation through 2037.

These approvals—among many others that would have been rejected or delayed by the Biden administration—will expand the nation’s energy supply in the long term, but not immediately.

The same goes for subsidy repeal. The One Big Beautiful Bill Act has cut the Inflation Reduction Act subsidies to wind and solar projects that start construction after July 4, 2026, and are placed in service after the end of 2027.

Scrapping these subsidies will gradually realign energy investment decisions with market factors, such as cost, demand, and location, rather than government tax credits. As a result, while government handouts have already distorted the electricity mix, all energy sources will eventually be able to compete on equal grounds to provide the most affordable electricity to Americans.

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Regardless of the Trump administration’s actions to unleash energy dominance, some will mistake a spurious correlation—rising electricity prices under the Trump administration—for causation, claiming that Republicans are driving up power prices. But this is not the case.

The simplistic narrative to blame Mr. Trump for increasing electricity prices falls apart when considering that different state policies drive up costs in some states while keeping them affordable in others. Residential prices can vary from 41 cents per kilowatt-hour in Hawaii to 26 cents in New York to 12 cents in Idaho.

One state policy that might help explain these price differences is the Renewable Portfolio Standard (RPS), which requires a share of electricity generation to come from renewable resources. Of the top 10 states with the highest prices, nine have RPS regulations (Hawaii, California, Connecticut, Massachusetts, Rhode Island, Maine, New York, New Hampshire, and Vermont) except for Alaska.

In contrast, of the 10 states with the lowest prices, two states—Nevada and Missouri—have such requirements.

So while state governments must roll back burdensome policies like renewable portfolio standards, the Trump administration and Congress are unleashing American energy through a whole-of-government approach—an effort that will take time to unfold.

This piece originally appeared in The Washington Times

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