Two Republican senators are attempting to stall the confirmation process for three of President Donald Trump’s nominees for the Treasury Department.
Senators Chuck Grassley from Iowa and John Curtis from Utah are urging the administration to disclose details about how the solar tax credit’s gradual phase-out will be implemented in the president’s major legislative bill. Interestingly, both senators have previously supported ending wind and solar tax credits but are now concerned that the administration might accelerate the removal of these subsidies more quickly than what the law allows.
Grassley, a long-time supporter of wind energy, has temporarily halted the nomination of treasury secretary candidate Jonathan McCernan, along with deputy secretary candidate Francis Brook and general counsel candidate Brian Morrissey. “While working on this significant legislation, I collaborated with my colleagues to ensure a proper plan was established for the gradual phase-out of tax credits for wind and solar,” Grassley commented in Congressional records. He emphasized that he would hold back on supporting these nominees until he feels assured that the regulations align with both the law and Congress’s intentions.
Curtis hasn’t spoken publicly about his delay yet, but a source familiar with his views mentioned that he wishes to confirm that the laws regarding solar and wind tax credits are being correctly followed, noting that a slower phase-out would offer developers some investment stability.
Grassley and Curtis are among a group of GOP senators who managed to secure a last-minute amendment in the president’s extensive tax and immigration-focused bill, which paused immediate tax implications for solar and wind projects. The legislation allows developers a year to begin construction, permitting them to only expend 5% of a project’s cost during that timeframe, after which they can apply for a full grant for an additional four years.
However, an executive order from Trump issued on July 7 has raised concerns among Senate Republicans, who had previously opposed efforts to cut back on green energy subsidies, especially shortly after the signing of the pivotal bill, as it seemed to go even further than what was negotiated.
Both Trump and many Republican lawmakers contend that these green energy subsidies weaken the reliability of the U.S. power grid and threaten energy independence, particularly pointing to China’s significant role in the green energy supply network.
The executive order instructed Treasury Secretary Scott Bescent to enhance and solidify the gradual removal of green energy tax credits linked to the significant legislative piece.
Grassley remarked that keeping the language within the legislative act could lead to future Treasury guidance being delayed. He noted, “The definition of a project ‘starting construction’ has been clearly established by Treasury guidance for over a decade,” stressing that both the law and Congress’s intent should be transparent.
Senators have the ability to “hold” nominations, which means candidates may not receive swift confirmation in the Senate. With nearly all of Trump’s candidates being held up by Senate Democrats, it has forced Senate Majority Leader John Toon to expend considerable time addressing these nominations.
Aside from Secretary of State Marco Rubio, who was confirmed shortly after the president took office, the majority leader has managed to confirm 125 other nominees despite the delays imposed by Democrats.
Neither Grassley nor a White House representative responded to requests for comments regarding this situation.
