{"id":761022,"date":"2026-07-13T20:36:09","date_gmt":"2026-07-13T20:36:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/761022\/"},"modified":"2026-07-13T20:36:09","modified_gmt":"2026-07-13T20:36:09","slug":"the-ongoing-economic-fallout-of-the-obbba","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/761022\/","title":{"rendered":"The\u00a0ongoing\u00a0economic fallout of the OBBBA"},"content":{"rendered":"

The clean energy incentives under the Inflation Reduction Act\u00a0(IRA)\u00a0of 2022 sent the solar and other clean energy industries on an upward trajectory. Three years later,\u00a0changes in the One Big Beautiful Bill Act<\/a>\u00a0(OBBBA)\u00a0are creating\u00a0ongoing\u00a0economic\u00a0fallout; the\u00a0focus of the recent E2 report\u00a0One year since\u00a0the One Big Beautiful Bill: An economic impact analysis of America\u2019s clean energy economy<\/a>.\u00a0<\/p>\n

The\u00a0E2 report is based on\u00a0analysis completed by BW Research,\u00a0modeling\u00a0the economic impact of\u00a0216 large-scale clean energy and clean vehicle manufacturing and electricity generation projects\u00a0that have been cancelled,\u00a0closed\u00a0or downsized\u00a0as a result of\u00a0the changes to tax law.\u00a0\u00a0<\/p>\n

\u201cThe numbers tell the story. Making it harder to build clean energy projects means lost jobs, lost investments, lost electricity supplies and lost local tax revenues,\u201d\u202fsaid E2 Executive Director Bob Keefe.\u00a0\u201cAdd it all up and it\u2019s clear that federal actions to stop clean energy are costing all of us \u2013 consumers, businesses and our national economy \u2013 big time.\u201d\u00a0<\/p>\n

The analysis\u00a0found that,\u00a0as a result of\u00a0the rollbacks,468,000 jobs are no longer supported, including 124,500 construction jobs annually for five years and 343,500 permanent jobs. The job and gross domestic product (GDP)\u00a0losses\u00a0extend\u00a0far beyond those workers directly employed at the cancelled or downsized projects,\u00a0but also businesses\u00a0that supplied product as well as local businesses that would have been supported by the workers.\u00a0\u00a0<\/p>\n

By energy sector, solar has lost 32,627 jobs (annual jobs for five years); battery storage has lost 42,365; electric vehicle industry has lost 27,810.\u00a0<\/p>\n

To estimate the economic impacts associated with\u00a0the\u00a0cancelled, closed or downsized clean energy projects, BW Research\u00a0used\u00a0modeling software to estimate the economic activity that would have been supported by these projects based on publicly available project announcements.\u00a0BW then generated economic impact models of each sector, generating output\u00a0at the national level, including earnings, tax revenue, employment, and GDP.\u00a0<\/p>\n

The chart below shows the combined jobs, wage,\u00a0tax\u00a0and GDP reductions from major clean energy project cancellations, downsizes and closures since 2025.\u00a0<\/p>\n

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The total lost capital investment in solar is estimated at\u00a0$16.71 billion; battery storage\u00a0$24.15 billion, electric\u00a0vehicle\u00a0$16.11 billion.\u00a0Across all six sectors modeled, which also included wind, electric transmission and distribution and clean fuels, total lost capital investment is estimated at\u00a0$68.18 billion. Annual lost operational investment is $48.36.\u00a0<\/p>\n

The report points out that, assuming private-sector capital investment cancellations would have been evenly invested over the next five years, the\u00a0$68 billion\u00a0reduction translates to a reduction of about\u00a0$13.6 billion\u00a0annually over those five years.\u00a0<\/p>\n

In that five-year period, the\u00a0$13.6 billion\u00a0annual investment would have supported about 124,500 jobs throughout the economy in each of those five years.\u00a0The report notes that construction phase jobs include more than just putting steel in the ground, but also\u00a0includes\u00a0professional services, manufacturing, other supply\u00a0chain\u00a0and induced jobs.\u00a0\u00a0<\/p>\n

Induced jobs no longer supported by the cancelled or reduced clean energy projects include healthcare, retail, finance, insurance, real estate,\u00a0hospitality\u00a0and professional business services. All of these sectors suffer with a reduction in\u00a0workforce.\u00a0<\/p>\n

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Further losses can be seen in the construction phase, assuming private-sector capital investment cancellations would also have been evenly invested\u00a0across\u00a0the next five years. Had they not been cancelled, the report estimates that the value\u00a0added\u00a0generated from\u00a0the projects would have represented a 134% return on the original\u00a0$68 billion\u00a0capital\u00a0investment\u00a0over five years.\u00a0Additional\u00a0impacts\u00a0would include\u00a0$10.7 billion\u00a0in annual labor income and\u00a0$2.5 billion\u00a0in annual local,\u00a0state\u00a0and federal tax revenue.\u00a0<\/p>\n

Overall, the report finds that,\u00a0in addition to the economic setback, the cancellations come at a time when demand for electricity is at an all-time high. Cancelled,\u00a0closed\u00a0or downsized projects\u00a0amount to an estimated\u00a010\u00a0GW\u00a0of solar capacity,\u202f3.75\u00a0GW\u00a0of wind capacity\u202fand\u00a09\u00a0GW\u00a0of battery storage, or\u00a0enough electricity to power\u00a0about\u00a03 million homes, the report finds.\u00a0<\/p>\n

\u201cThese cancellations are hitting exactly the kinds of projects America needs most: domestic manufacturing, battery storage, solar, wind, and electric vehicles,\u201d said\u202fMichael Timberlake, E2 Director of Research and Publications. \u201cThe losses go far beyond the direct jobs announced by companies. Every cancelled factory or power project means fewer construction workers on site, fewer suppliers filling orders, fewer dollars flowing through local economies, and fewer tax revenues for schools, fire departments, roads, and public services.\u201d\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"The clean energy incentives under the Inflation Reduction Act\u00a0(IRA)\u00a0of 2022 sent the solar and other clean energy industries…\n","protected":false},"author":2,"featured_media":761023,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,101,4084,19477,1551,1343],"class_list":["post-761022","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-employment","tag-federal","tag-obbba","tag-policy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/761022","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=761022"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/761022\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/761023"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=761022"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=761022"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=761022"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}