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Trump budget bill: Billions in costs, thousands of job losses expected in MN

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Published  July 7, 2025 6:00pm CDT
Politics
FOX 9
Trump budget bill could raise energy costs

Trump budget bill could raise energy costs

A new budget bill passed by Congress could hit Minnesota?s next generation especially hard, potentially costing Minnesotans $2.7 billion in home energy bill increases and 23,000 jobs.

The Brief

    • The big new budget bill is expected to hit Minnesota's next-generation energy industry hard. The nonpartisan think tank Energy Innovation projects it will cost Minnesotans $2.7 billion in home energy bill increases and the state will lose 23,000 jobs.
    • The Inflation Reduction Act of 2022 is credited with producing 270,000 new jobs producing American-made energy across the country. It created tax credits that were supposed to sunset in 2032.
    • The newly signed budget ends tax credits for green energy, but adds credits for oil, gas and coal. Minnesota has just two oil refineries and five coal power plants remaining, so the positive impacts are expected to be minimal.

ST. PAUL, Minn. (FOX 9) - Now that President Trump has signed the big budget bill into law, its final provisions are cemented.

The next-generation energy industry is one of the biggest losers and it’ll hit especially hard in Minnesota – projected to increase home energy bills by 28% and eliminate 23,000 jobs.

American growth spurt

Fast-growing job sector:

For 16 years, TruNorth Solar has left its mark across Minnesota.

"Residential, commercial, large commercial," said owner Marty Morud. "We've installed for cities, school districts, utilities throughout the state."

The company has grown to about 30 employees and adopted American-made technology as the U.S. solar industry grew.

"Our modules come from the state of Georgia," Morud said. "Our inverters come from Florida and Texas. Our racking comes from Ohio and Arizona. And so we're really proud of that."

Minnesota now has more than 60,000 green energy jobs, growing faster than any other job sector.

Foundation unfinished

Expectations erased:

But that growth was built partly on the expectation that wind and solar tax credits designed to increase American-made power would last until 2032.

The new budget ends much sooner.

For home solar installations, the credit goes away at the end of this year.

"It's a huge step backwards for the clean energy industry, the local jobs that the industry provides, but then also to our nation's global economic competitiveness," said Gregg Mast, executive director of Clean Energy Economy Minnesota.

Changing costs

Expensive energy:

The nonpartisan think tank Energy Innovation says the new budget will shrink Minnesota’s economy and raise our household energy bills by $2.7 billion over the next decade.

"Unfortunately, it's just a substantial hike in electricity rates," said Annie Levenson-Falk, executive director of Citizens Utility Board.

She says Minnesotans have a total of $150 million in unpaid energy bills, so 91,000 people had their utilities shut off last year and this budget will make it worse.

There’s a dark cloud over solar businesses as well.

But Morud hopes people will recognize that the sun is still the cheapest source of power for homes.

The bill just makes the initial investment a bit steeper.

"We have to get creative to make sure that this pending cliff doesn't change things for us," he said.

The budget increases tax credits for oil, gas and coal, and the American Petroleum Institute praised it, mostly for opening up public lands and waters for drilling.

Minnesota has only two oil refineries and a few remaining coal power plants, so the benefits here are expected to be minimal. 

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