WASHINGTON (AP) — The sprawling Republican budget bill approved by the Senate Tuesday removes a proposed tax on solar and wind energy projects but quickly phases out tax credits for wind, solar and other renewable energy.
The Senate approved the bill 51-50 as President Donald Trump and GOP lawmakers move to dismantle the 2022 climate law passed by Democrats under former President Joe Biden. Vice President JD Vance broke a tie after three Republican senators voted no.
The bill now moves to the House for final legislative approval.
The excise tax on solar and wind generation projects was added to the Senate bill over the weekend, prompting bipartisan pushback from lawmakers as well as clean energy developers and advocates.
The final bill removes the tax but mostly sticks with legislative language released late Friday night and would end incentives for clean energy sooner than a draft version unveiled two weeks ago.
Democrats and environmental groups said the GOP plan would crush growth in the wind and solar industry and lead to a spike in Americans’ utility bills. The measure jeopardizes hundreds of renewable energy projects slated to boost the nation’s electric grid, they said.
“Despite limited improvements, this legislation undermines the very foundation of America’s manufacturing comeback and global energy leadership,” said Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association. If the bill becomes law, “families will face higher electric bills, factories will shut down, Americans will lose their jobs, and our electric grid will grow weaker,'' she said.
The American Petroleum Institute, the top lobbying group for the oil and gas industry, applauded the bill's passage.
“This historic legislation will help usher in a new era of energy dominance by unlocking opportunities for investment, opening lease sales and expanding access to oil and natural gas development,'' said Mike Sommers, the group's president and CEO.
While Democrats complained that the bill would make it harder to get renewable energy to the electric grid, Republicans said the measure represents historic savings for taxpayers and supports production of traditional energy sources such as oil, natural gas and coal, as well as nuclear power, increasing reliability.
In a compromise approved overnight, the bill allows wind and solar projects that begin construction within a year of the law's enactment to get a full tax credit without a deadline for when the projects are “placed in service,'' or plugged into the grid. Wind and solar projects that begin later must be placed in service by the end of 2027 to get a credit.
The bill retains incentives for technologies such as advanced nuclear, geothermal and hydropower through 2032.
Changes to the renewable energy language — including removal of the excise tax on wind and solar — were negotiated by a group of Republican senators, including Alaska Sen. Lisa Murkowski and Iowa Sens. Joni Ernst and Chuck Grassley. Iowa is a top producer of wind power, while Murkowski is a longtime supporter of renewable energy as crucial for achieving energy independence, particularly for isolated rural communities in Alaska.
Murkowski, who voted in favor of the final bill, called her decision-making process “agonizing.”
Changes that push back the timeline for terminating wind and solar credits mean that “a good number” of Alaska projects would still qualify, she said. “Again, it’s not all we wanted. It could have been worse,” she told reporters Tuesday.
Murkowski praised provisions calling for more oil lease sales in the Arctic National Wildlife Refuge and other areas in Alaska and increased revenue sharing.
Rhode Island Sen. Sheldon Whitehouse, the top Democrat on the Senate Environment and Public Works Committee, called the bill a “massively destructive piece of legislation” that “increases costs for everyone by walloping the health care system, making families go hungry and sending utility bills through the roof.”
The bill “saddles our children and grandchildren with trillions and trillions of dollars in debt — all to serve giant corporations, fossil fuel polluters and billionaire Republican megadonors who are already among the richest people on the planet,” Whitehouse said.
Wyoming Sen. John Barrasso, the No. 2 Senate Republican, hailed the bill for rescinding many elements of what he called the Biden administration’s “green new scam,” including electric vehicle tax credits that have allowed car owners to lower the purchase price of EVs by $7,500. The bill also blocks for 10 years a first-ever fee on excess methane emissions from oil and gas production. Industry groups fiercely opposed the methane fee, which was authorized by Democrats in the 2022 climate law but never implemented. The GOP bill also increases oil and gas leases on public lands and revives coal leasing in Wyoming and other states.
“Today, the Senate moved President Trump’s agenda forward,'' said West Virginia Sen. Shelley Moore Capito, a Republican who chairs the Senate environment committee.
Clean energy advocates were deeply disappointed by the bill, which they argue undoes much of the climate law before it fully takes effect.
“By eliminating a number of clean energy incentives and slashing others, this bill represents a significant step backward for America’s energy future,” said Nathaniel Keohane, president of the Center for Climate and Energy Solutions, a nonprofit that seeks to accelerate the global transition to net-zero greenhouse gas emissions.
“Curtailing incentives for electricity generated from wind and solar power is particularly shortsighted'' and will raise energy prices for households and businesses and threaten reliability of the electric grid, Keohane said.
Associated Press writers Alexa St. John in Detroit and Becky Bohrer in Juneau, Alaska contributed to this story.
The Qcells solar panel plant is seen Friday, June 27, 2025, near Cartersville, Ga. (AP Photo/Mike Stewart)
Senate Majority Leader John Thune, R-S.D., is flanked by Sen. John Barrasso, R-Wyo., the GOP whip, left, and Finance Committee Chairman Mike Crapo, R-Idaho, as he speaks to reporters just after passage of the budget reconciliation package of President Donald Trump's signature bill of big tax breaks and spending cuts, at the Capitol in Washington, Tuesday, July 1, 2025. The bill now moves back to the House for final consideration. (AP Photo/J. Scott Applewhite)
FILE - A Block Island Wind Farm turbine operates, Dec. 7, 2023, off the coast of Block Island, R.I., during a tour organized by Orsted. (AP Photo/Julia Nikhinson, File)
WASHINGTON (AP) — Becky Pepper-Jackson finished third in the discus throw in West Virginia last year though she was in just her first year of high school. Now a 15-year-old sophomore, Pepper-Jackson is aware that her upcoming season could be her last.
West Virginia has banned transgender girls like Pepper-Jackson from competing in girls and women's sports, and is among the more than two dozen states with similar laws. Though the West Virginia law has been blocked by lower courts, the outcome could be different at the conservative-dominated Supreme Court, which has allowed multiple restrictions on transgender people to be enforced in the past year.
The justices are hearing arguments Tuesday in two cases over whether the sports bans violate the Constitution or the landmark federal law known as Title IX that prohibits sex discrimination in education. The second case comes from Idaho, where college student Lindsay Hecox challenged that state's law.
Decisions are expected by early summer.
President Donald Trump's Republican administration has targeted transgender Americans from the first day of his second term, including ousting transgender people from the military and declaring that gender is immutable and determined at birth.
Pepper-Jackson has become the face of the nationwide battle over the participation of transgender girls in athletics that has played out at both the state and federal levels as Republicans have leveraged the issue as a fight for athletic fairness for women and girls.
“I think it’s something that needs to be done,” Pepper-Jackson said in an interview with The Associated Press that was conducted over Zoom. “It’s something I’m here to do because ... this is important to me. I know it’s important to other people. So, like, I’m here for it.”
She sat alongside her mother, Heather Jackson, on a sofa in their home just outside Bridgeport, a rural West Virginia community about 40 miles southwest of Morgantown, to talk about a legal fight that began when she was a middle schooler who finished near the back of the pack in cross-country races.
Pepper-Jackson has grown into a competitive discus and shot put thrower. In addition to the bronze medal in the discus, she finished eighth among shot putters.
She attributes her success to hard work, practicing at school and in her backyard, and lifting weights. Pepper-Jackson has been taking puberty-blocking medication and has publicly identified as a girl since she was in the third grade, though the Supreme Court's decision in June upholding state bans on gender-affirming medical treatment for minors has forced her to go out of state for care.
Her very improvement as an athlete has been cited as a reason she should not be allowed to compete against girls.
“There are immutable physical and biological characteristic differences between men and women that make men bigger, stronger, and faster than women. And if we allow biological males to play sports against biological females, those differences will erode the ability and the places for women in these sports which we have fought so hard for over the last 50 years,” West Virginia's attorney general, JB McCuskey, said in an AP interview. McCuskey said he is not aware of any other transgender athlete in the state who has competed or is trying to compete in girls or women’s sports.
Despite the small numbers of transgender athletes, the issue has taken on outsize importance. The NCAA and the U.S. Olympic and Paralympic Committees banned transgender women from women's sports after Trump signed an executive order aimed at barring their participation.
The public generally is supportive of the limits. An Associated Press-NORC Center for Public Affairs Research poll conducted in October 2025 found that about 6 in 10 U.S. adults “strongly” or “somewhat” favored requiring transgender children and teenagers to only compete on sports teams that match the sex they were assigned at birth, not the gender they identify with, while about 2 in 10 were “strongly” or “somewhat” opposed and about one-quarter did not have an opinion.
About 2.1 million adults, or 0.8%, and 724,000 people age 13 to 17, or 3.3%, identify as transgender in the U.S., according to the Williams Institute at the UCLA School of Law.
Those allied with the administration on the issue paint it in broader terms than just sports, pointing to state laws, Trump administration policies and court rulings against transgender people.
"I think there are cultural, political, legal headwinds all supporting this notion that it’s just a lie that a man can be a woman," said John Bursch, a lawyer with the conservative Christian law firm Alliance Defending Freedom that has led the legal campaign against transgender people. “And if we want a society that respects women and girls, then we need to come to terms with that truth. And the sooner that we do that, the better it will be for women everywhere, whether that be in high school sports teams, high school locker rooms and showers, abused women’s shelters, women’s prisons.”
But Heather Jackson offered different terms to describe the effort to keep her daughter off West Virginia's playing fields.
“Hatred. It’s nothing but hatred,” she said. "This community is the community du jour. We have a long history of isolating marginalized parts of the community.”
Pepper-Jackson has seen some of the uglier side of the debate on display, including when a competitor wore a T-shirt at the championship meet that said, “Men Don't Belong in Women's Sports.”
“I wish these people would educate themselves. Just so they would know that I’m just there to have a good time. That’s it. But it just, it hurts sometimes, like, it gets to me sometimes, but I try to brush it off,” she said.
One schoolmate, identified as A.C. in court papers, said Pepper-Jackson has herself used graphic language in sexually bullying her teammates.
Asked whether she said any of what is alleged, Pepper-Jackson said, “I did not. And the school ruled that there was no evidence to prove that it was true.”
The legal fight will turn on whether the Constitution's equal protection clause or the Title IX anti-discrimination law protects transgender people.
The court ruled in 2020 that workplace discrimination against transgender people is sex discrimination, but refused to extend the logic of that decision to the case over health care for transgender minors.
The court has been deluged by dueling legal briefs from Republican- and Democratic-led states, members of Congress, athletes, doctors, scientists and scholars.
The outcome also could influence separate legal efforts seeking to bar transgender athletes in states that have continued to allow them to compete.
If Pepper-Jackson is forced to stop competing, she said she will still be able to lift weights and continue playing trumpet in the school concert and jazz bands.
“It will hurt a lot, and I know it will, but that’s what I’ll have to do,” she said.
Heather Jackson, left, and Becky Pepper-Jackson pose for a photograph outside of the U.S. Supreme Court in Washington, Sunday, Jan. 11, 2026. (AP Photo/Jose Luis Magana)
Heather Jackson, left, and Becky Pepper-Jackson pose for a photograph outside of the U.S. Supreme Court in Washington, Sunday, Jan. 11, 2026. (AP Photo/Jose Luis Magana)
Becky Pepper-Jackson poses for a photograph outside of the U.S. Supreme Court in Washington, Sunday, Jan. 11, 2026. (AP Photo/Jose Luis Magana)
The Supreme Court stands is Washington, Friday, Jan. 9, 2026. (AP Photo/J. Scott Applewhite)
FILE - Protestors hold signs during a rally at the state capitol in Charleston, W.Va., on March 9, 2023. (AP Photo/Chris Jackson, file)
