GOP spending cuts hit Reagan-era ozone treaty
As part of the spending cut package passed by the House early Friday morning and heading to President Donald Trump's desk, lawmakers cut millions from the federal government's contributions to an international fund that helps poorer countries reduce their emissions of ozone-depleting gases.
That fund is a crucial part of the Montreal Protocol and was established in 1991, and to date the United States has provided about a quarter of its funding. The cut is part of the $9 billion rescissions package Trump proposed in May.
It's unclear exactly how much cash will be clawed back, our Sara Schonhardt reports. In the legislation, as well as in Trump's request, the Montreal money was part of $437 million in assistance for international organizations.
The clawback could do real damage to the program's effectiveness, supporters of the treaty told Sara.
'The overall effect of this retreat from the Montreal Protocol, either via the clawing back of funding we had promised to give, or the other in-kind contributions ... is going to be bad for us environmentally [and] from a business standpoint,' Richie Kaur with the Natural Resources Defense Council said.
Montreal has long enjoyed bipartisan support. Former President Ronald Reagan helped negotiate it, and both environmentalists and businesses have long seen it as an effective way to reduce pollution without hurting business.
It's been credited with helping to restore the ozone layer by mandating reductions in ozone-harming substances such as chlorofluorocarbons. A 2016 addendum known as the Kigali Amendment, which the Senate ratified in 2022, targeted hydrofluorocarbons, a climate-warming pollutant.
Sen. Chris Murphy (D-Conn.) proposed an amendment to the rescissions package that would have undone the cuts to the Montreal fund and other international organizations, but it did not get a vote before the package passed, our Andres Picon reports.
What now? Trump is likely to sign the rescissions legislation soon.
Congress could choose to put money into the Montreal fund in future spending bills. But that would be an uphill battle, at least while Republicans are in charge.
House Republicans this week advanced their 2026 appropriations bill for the State Department and other foreign operations, and that bill would also zero out Montreal money. The Senate hasn't released its 2026 funding proposal for State, but that's likely to happen in the coming weeks.
The U.S. is likely to keep up its domestic obligations under the treaty, and when State releases a report next month on whether to exit certain international organizations and treaties, Montreal will probably be safe.
But the Trump administration has shown no desire to contribute to the international fund, and staffing cuts at NOAA and NASA could threaten the assistance that those agencies have historically provided to the international community on ozone-depleting emissions.
It's Friday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Timothy Cama. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to tcama@eenews.net.
Today in POLITICO Energy's podcast: Zack Colman and Josh Siegel break down the Trump administration's latest move on wind and solar energy.
Power Centers
Republicans question billion-dollar provision for fossil fuels The recently signed megalaw included $1 billion in Defense Production Act spending for fossil fuel plants, raising questions among some Senate Republicans, Kelsey Brugger writes.
It's not clear who inserted the provision. Both Trump and Biden have used the act to boost domestic industries, citing national defense.
Sen. John Kennedy (R-La.) introduced an amendment after the bill's passage to strike the funding from the legislation. It failed.
'There are so many issues in that bill of which I have no clarity and no knowledge,' Sen. Cynthia Lummis (R-Wyo.) told Kelsey when asked about the provision.
Not a golden market for insuranceNewly released data shows it's now harder to find property insurance in California than Florida, Thomas Frank writes today.
Florida's market is starting to benefit from laws enacted in 2022 after major storms put some insurers out of business, Tom writes. California, meanwhile, is still seeing insurers drop out of areas that have seen repeated wildfires, despite reforms this year to help the market.
Nationally, insurers are continuing to withdraw from markets that have seen extreme weather driven by climate change.
Knockout punch for wind and solar?A new Interior Department latest directive on wind and solar projects could have a ripple effect across the industry, Zack and Josh write.
POLITICO reported Wednesday on a memo requiring Secretary Doug Burgum's personal approval for all aspects of wind and solar projects on federal land, a move seen as another attempt by the administration to squelch the industry. That has sparked concern on Capitol Hill.
'It is definitely playing favorites, and they've made it very clear they do not support continuation of new wind and solar projects,' Sen. Lisa Murkowski (R-Alaska) said.
In Other News
That'll do: Virginia regulators approved Dominion Energy's 15-year energy plan that includes fossil fuel plants, saying it was 'legally sufficient' and asking for a new approach in its next plan to generate all clean energy by 2045.
Subscriber Zone
A showcase of some of our best subscriber content.
Chevron completed its $53 billion purchase of Hess on Friday after an international commerce body blocked a bid that had slowed the deal.
A White House report makes the case for fossil fuels spurring economic growth.
California sued the Trump administration after it terminated $4 billion in federal grants for a high-speed rail project in the state.
Gov. Gavin Newsom (D) is floating bill language that would make it easier to drill for oil in existing fields in California.
That's it for today, folks. Thanks for reading, and have a great weekend!
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
4 minutes ago
- Yahoo
Starmer to raise Gaza ceasefire and UK steel tariffs in Trump meeting
Sir Keir Starmer is expected to raise the prospect of reviving ceasefire talks between Israel and Hamas and the future of tariffs on British steel as he meets Donald Trump in Scotland. The Prime Minister will travel to Ayrshire, where the US president is staying at his Turnberry golf resort, for wide-ranging discussions on trade and the Middle East as international alarm grows over starvation in Gaza. The two leaders have built a rapport on the world stage despite their differing political backgrounds, with Mr Trump praising Sir Keir for doing a 'very good job' in office ahead of their talks on Monday. But humanitarian conditions in Gaza and uncertainty over US import taxes on key British goods in America threaten to complicate their bilateral meeting. Peace talks in the Middle East came to a standstill last week after Washington and Israel recalled negotiating teams from Qatar, with White House special envoy Steve Witkoff blaming Hamas for a 'lack of desire' to reach an agreement. Since then, Israel has promised military pauses in three populated areas of Gaza to allow designated UN convoys of aid to reach desperate Palestinians. But the UK, which is joining efforts to airdrop aid into the enclave and evacuate children in need of medical assistance, has said that access to supplies must be 'urgently' widened. In his talks with Mr Trump, Sir Keir will 'welcome the President's administration working with partners in Qatar and Egypt to bring about a ceasefire in Gaza', Number 10 said. 'He will discuss further with him what more can be done to secure the ceasefire urgently, bring an end to the unspeakable suffering and starvation in Gaza and free the hostages who have been held so cruelly for so long.' The leaders will also talk 'one-on-one about advancing implementation of the landmark Economic Prosperity Deal so that Brits and Americans can benefit from boosted trade links between their two countries', it said. The agreement signed at the G7 summit last month slashed trade barriers on goods from both countries. But tariffs for the steel industry, which is of key economic importance to the UK, were left to stand at 25% rather than falling to zero as originally agreed. Concerns had previously been raised that the sector could face a levy of up to 50% – the US's global rate – unless a further agreement was made by July 9, when Mr Trump said he would start implementing import taxes on America's trading partners. But that deadline has been and gone without any concrete update on the status of UK steel. Downing Street said that both sides are working 'at pace' to 'go further to deliver benefits to working people on both sides of the Atlantic' and to give UK industry 'the security it needs'. The two leaders are also expected to discuss the war in Ukraine, which Number 10 said would include 'applying pressure' on Vladimir Putin to end the invasion, before travelling on together for a private engagement in Aberdeen. It comes after Mr Trump announced he had agreed 'the biggest deal ever made' between the US and the European Union after meeting Ursula von der Leyen for high-stakes talks at Turnberry on Sunday. After a day playing golf, the US leader met the President of the EU Commission to hammer out the broad terms of an agreement that will subject the bloc to 15% tariffs on most of its goods entering America. This is lower than a 30% levy previously threatened by the US president. The agreement will include 'zero for zero' tariffs on a number of products including aircraft, some agricultural goods and certain chemicals, as well as EU purchases of US energy worth 750 billion dollars (£558 billion) over three years. Speaking to journalists on Sunday about his meeting with Sir Keir, Mr Trump said: 'We're meeting about a lot of things. We have our trade deal and it's been a great deal. 'It's good for us. It's good for them and good for us. I think the UK is very happy, they've been trying for 12 years to get it and they got it, and it's a great trade deal for both, works out very well. 'We'll be discussing that. I think we're going to be discussing a lot about Israel. 'They're very much involved in terms of wanting something to happen. 'He's doing a very good job, by the way.' Mr Trump's private trip to the UK comes ahead of a planned state visit in September.
CNN
6 minutes ago
- CNN
In a deal with Trump, Europe gets an elusive agreement. But everyone's a little annoyed
Tariffs European Union Prescription drugsFacebookTweetLink Follow The United States and the European Union avoided the worst-case scenario: a damaging, all-out trade war between allies that threatened to raise prices on a large number of goods and slow two of the world's largest economies. The framework delivered a sense of relief for both sides – but few are cheering the arrangement itself. The agreement, which sets a 15% tariff on most European goods entering the United States, is higher than the 10% tariff Trump put in place on April 2 and significantly higher than the average of around 2% from before Trump's presidency. But it's significantly less than the enormous numbers Trump had been threatening if an agreement wasn't reached. A deal with the United States felt like an impossibility in late May. Frustrated by a lack of progress in negotiations with the 27-member European Union, Trump on May 24 told the world he was done talking to some of America's strongest allies. 'Our discussions with them are going nowhere!' Trump posted on Truth Social. 'I'm not looking for a deal,' he said later that day in the Oval Office. 'We've set the deal — it's at 50%.' The statement — and the shockingly high tariff threat — stunned European trade negotiators and rallied Europe's leaders into action. They quickly agreed to kick talks into high gear. Trump, who has taken a particular liking to European Commission President Ursula von der Leyen, was swayed after she called him to say the EU would commit to moving 'swiftly and decisively.' Trump soon backed off his threat and said negotiations would continue. But a deal between the United States and the European Union, one of America's top trading partners, had remained elusive for months. The two sides squabbled over America's insistence on high tariffs for steel and aluminum, looming tariffs on pharmaceuticals and the tariff floor for virtually all goods that the Trump administration appears set to raise to 15%. Negotiators were unable to come up with a resolution before the initial July 9 deadline — one of the reasons the Trump administration postponed the effective day for its 'reciprocal' tariffs to August 1. With just days to go before the extended deadline, while Trump was visiting Scotland, he met with van der Leyen and finalized a framework for an agreement — one that was thin on details, heavy on caveats, but was nevertheless a hard-sought relief for both sides. With the agreement in place, two of the world's largest economies avoided a potential economically crippling trade war. The United States held a 50% tariff threat over Europe's head, and Europe threatened America with strategic retaliatory tariffs that threatened to damage key US industries. Both sides appeared to embrace the fact that a deal was in place more than they celebrated it. 'We made it,' Trump said while announcing the deal with von der Leyen. 'It's going to work out really well.' 'I think we hit exactly the point we wanted to find,' von der Leyen said. 'Rebalance but enable trade on both sides. Which means good jobs on both sides of the Atlantic, means prosperity on both sides of the Atlantic and that was important for us.' Markets cheered, somewhat: Dow futures rose 150 points, or 0.3%, poised to open near record territory. S&P 500 futures gained 0.3% and Nasdaq futures were 0.4% higher. The United States and Europe 'seem to have avoided a self-destructive trade war for now in the biggest and deepest commercial and investment relationship the global economy knows,' said Jörn Fleck, senior director of the Atlantic Council's Europe Center. Nevertheless, the details remain murky. Europe will increase its investment in the United States by $600 billion and commit to buying $750 billion worth of US energy products. It eliminates tariffs on a variety of items, including aircraft and plane parts, semiconductors, generic drugs and some chemicals and agricultural products. Industries in the zero-tariff arrangement cheered. 'The zero-for-zero tariff regime will grow jobs, strengthen our economic security and provide a framework for U.S. leadership in manufacturing and safety,' Airlines for America said in a statement. But the 15% baseline tariff applies to most goods, so the EU member states – and American importers — will have to come to terms with the fact that higher tariffs will raise prices for European goods in America. 'Higher tariffs mean higher prices for US consumers—and that will seriously dent EU companies' bottom lines,' said Alex Altmann, vice president of the British Chamber of Commerce in Germany. 'EU companies aiming to stay competitive in the US market will think twice when deciding where to produce or assemble.' The agreement also deals another blow to Detroit automakers, which objected to a similar deal the Trump administration reached with Japan. The 15% auto tariff on EU cars imported to the United States undercuts the 25% tariff American automakers pay if their cars are built in Mexico. Although von der Leyen said pharmaceuticals were included in the early framework, she acknowledged that Trump may ultimately place higher tariffs on drugs imported to the United States, undercutting the agreement. Still, in the eyes of the hard-working negotiators — and for the sake of the global economy — a deal is better than no deal. Now comes the hard part: figuring out the details.
Wall Street Journal
7 minutes ago
- Wall Street Journal
Trump and the EU Dodge a Trade War
The U.S. and Europe stepped back from the brink of a trade war Sunday, as the two sides announced a deal that avoids tit-for-tat escalation that could do larger damage to both economies. President Trump and European Commission president Ursula von der Leyen announced the deal as a major event, but that's true only as a relief. Mr. Trump had threatened a 30% tariff on European Union goods, while Europe had armed for a retaliatory strike on U.S. aircraft, cars, poultry, steel and much more. Europe also could have fired a bigger bazooka that included limits on U.S. investment and a big tax on U.S. companies operating on the continent.
