Solar Energy Crackdowns and the Government Shutdown

Register for the US SIF Fall Policy Webinar

Join US SIF on Wednesday, October 22 at 2pm for our quarterly policy webinar to hear the latest updates from the White House, Congress, the SEC, and beyond.

Register here.

All Out Against Solar

The White House has mounted a large campaign against clean energy since President Trump’s inauguration, and the assault is coming from all angles.

Grants: As reported last week, the Energy Department cancelled almost $8 billion in clean energy funding.

Tax credits: In the latest tax bill, renewable energy tax credits took a hit, as many credits were cut outright, while those remaining became increasingly more difficult to qualify for. One of the heightened qualifying bars for tax credits has been Foreign Entity of Concern restrictions. As previously reported, these restrictions target key minerals coming out of China, such as polysilicon. Treasury Department guidance on these new restrictions may not be published until June 30, 2026, leaving firms in the dark on compliance.

Trade measures: Imports of polysilicon and other critical materials for solar panels may be inhibited by new tariffs or import restrictions from the Commerce Department, which is currently investigating the national security threats of these imports. In addition, the Department of Homeland Security has committed to stronger enforcement of the Uyghur Forced Labor Protection Act, which is likely to slow solar imports due to the strong connection of Uyghur forced labor in solar supply chains.

Permits: Many solar companies have reported significant delays in the Interior Department’s permitting process, following the release of a more complex review process. While the Interior states it is continuing to review permits, President Trump has posted on Truth Social that no more solar or wind projects will receive approval.

What We’re Watching This Week

Government shutdown continues: We are one week into the government shutdown. With no end in sight, the majority of ‘regular’ federal activities remain frozen. The SEC Division of Corporation Finance and Division of Investment Management released announcements addressing potential questions investors may have during the shutdown. Our eyes and ears are peeled for news of progress on Congressional negotiations. Some initial reports say October 15, the first day active military members will not receive a paycheck, may place enough pressure on Congress to negotiate a deal.