Proposals to Reduce Fossil Fuel Subsidies

The document details the financial scale of U.S. fossil fuel subsidies, noting a shift from net revenue to net loss for the government between FY 2016 and FY 2022. It analyzes the Biden-Harris Administration's FY 2024 budget proposal to eliminate 13 tax preferences to save $96.9 billion, while also highlighting how the Inflation Reduction Act (IRA) and Infrastructure Investment and Jobs Act (IIJA) continue to provide funding for methane reduction and carbon capture technologies.

• In 2022, total fossil fuel subsidies in the United States reached $757 billion, with the vast majority ($754 billion) consisting of implicit subsidies related to negative externalities like environmental degradation and health impacts.
• The federal government's financial relationship with the oil and gas industry shifted from a surplus of $1.1 billion in FY 2016 to a net loss of $2.1 billion by FY 2022, as subsidies began to exceed tax revenues.
• The Biden-Harris Administration's FY 2024 budget request proposes eliminating 13 fossil fuel tax preferences and credits and modifying taxation rules for foreign income of U.S. oil and gas companies, which would collectively save $96.9 billion over 10 years.
• Despite pledges to stop funding new fossil fuel projects abroad, the U.S. committed over $1.8 billion to such projects in 2023 through the U.S. Export-Import Bank and the U.S. International Development Finance Corporation (DFC).
• The Inflation Reduction Act (IRA) and Infrastructure Investment and Jobs Act (IIJA) provide significant funding for fossil fuel-related technologies, including $1.55 billion for methane emission reductions and $12 billion for carbon capture, utilization, and storage.

APA

Brind’Amour, M. (2024). Proposals to Reduce Fossil Fuel Subsidies. Environmental and Energy Study Institute. https://www.eesi.org/papers/view/fact-sheet-proposals-to-reduce-fossil-fuel-subsidies-january-2024

Chicago

Brind’Amour, Molly. Proposals to Reduce Fossil Fuel Subsidies. Environmental and Energy Study Institute, 2024. https://www.eesi.org/papers/view/fact-sheet-proposals-to-reduce-fossil-fuel-subsidies-january-2024.

Wikipedia

{{cite report |last1=Brind’Amour |first1=Molly |title=Proposals to Reduce Fossil Fuel Subsidies |publisher=Environmental and Energy Study Institute |date=30 January 2024 |url=https://www.eesi.org/papers/view/fact-sheet-proposals-to-reduce-fossil-fuel-subsidies-january-2024 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{brindamour2024proposals, author = {Brind’Amour, Molly}, title = {{Proposals to Reduce Fossil Fuel Subsidies}}, institution = {Environmental and Energy Study Institute}, year = {2024}, month = jan, url = {https://www.eesi.org/papers/view/fact-sheet-proposals-to-reduce-fossil-fuel-subsidies-january-2024}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }