Two Republican senators are slowing down the confirmation process for three Treasury Department nominees put forward by President Donald Trump.
Iowa Senator Chuck Grassley and Utah Senator John Curtis are urging the administration to provide details about how it plans to implement the gradual phase-out of the solar tax credit included in the president’s significant legislative package. Interestingly, these two senators, who once called for ending wind and solar tax credits, are now worried that the administration may be moving too quickly to cut those subsidies, beyond what the legislation allows.
Grassley, a long-time supporter of wind energy, has put a hold on Treasury Secretary nominee Jonathan McCernan, as well as other candidates for deputy secretary and general counsel. “When we were working on this major bill, I collaborated with colleagues to establish a reasonable timetable for phasing out tax credits for wind and solar,” he noted. “I will continue to oppose these nominees until I’m assured that their actions will align with the law and congressional intent.”
Curtis has yet to publicly discuss his reasons for the hold, but sources say he wants to make sure that Utah’s Republicans are sticking to the legal framework regarding the phase-out of subsidies. He has suggested that delaying the end of these subsidies would provide much-needed investment certainty for project developers.
Grassley and Curtis, along with other GOP senators, managed to secure a last-minute amendment to the president’s tax and immigration bill, which softened the initial impact of solar and wind taxes. The final agreement allows solar and wind developers a year to start construction, spending only 5% of the project’s overall costs within that period, before locking in a full grant for four more years.
However, a recent executive order from Trump has raised concerns among Senate Republicans, as it appears to further weaken green energy subsidies just days after the bill was passed. Trump’s administration, along with many GOP lawmakers, argues that these subsidies undermine the reliability of the U.S. power grid and jeopardize energy independence, particularly pointing to China’s influence in the green energy sector.
The executive order instructed Treasury Secretary Scott Bescent to enhance the phased roll-out of green energy tax credits as articulated in the president’s major legislative agenda.
Grassley pointed out that maintaining the current language in the bill would complicate future guidelines from the Treasury. He emphasized, “The criteria for a project ‘starting construction’ have been clearly established for many years through Treasury guidelines.” He believes that both the law and congressional intentions are explicit.
Senators have the ability to “hold” candidates, which stalls their quick confirmation in the Senate. Currently, Senate Democrats are stalling nearly all of Trump’s nominees, forcing Senate Majority Leader John Toon to devote significant time to address these nominations.
Aside from Secretary of State Marco Rubio, who was confirmed shortly after Trump’s inauguration, the majority has still managed to confirm 125 nominees despite the ongoing delays caused by Senate Democrats.
Neither Grassley nor a spokesperson from the White House responded to requests for comments on this matter.
