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Senate GOP Adds $1 Billion Tax 'Giveaway' for Big Oil to Budget Bill
That provision was secured by Senator James Lankford, who has received more than $546,000 in campaign contributions from the oil and gas industry since 2019.
Jun 20, 2025
Senate Republicans have added a provision to their draft of the budget reconciliation package that would exempt domestic oil and gas companies from paying corporate taxes, saving them more than $1 billion over the next decade.
On Wednesday, David Dayen reported in The American Prospect that the Senate Finance Committee's version of the bill, released Monday, "shields domestic onshore oil and gas drillers from the Inflation Reduction Act's corporate alternative minimum tax," or CAMT.
That provision was secured by Sen. James Lankford (R-Okla.), and the benefits would largely flow to companies based in his home state.
As Dayen wrote, the CAMT is "a fairly clean tax provision as these things go." It currently requires companies that bring in more than $1 billion to pay 15% of the profits they report to shareholders.
However, the Senate Republican draft would modify that calculation to account for "intangible drilling and development costs," which would allow companies to declare lower profits and put many of them below the threshold required to pay the 15% tax.
According to Bloomberg, companies including ConocoPhillips, Ovintiv, and Civitas Resources lobbied in favor of the bill. Lankford, meanwhile, received more than $546,000 in campaign contributions from the oil and gas industry—his top source of industry donations—between 2019 and 2024 according to OpenSecrets.
Big Oil will be rewarded handsomely for its efforts. The provision in the Senate GOP bill is virtually identical to another bill proposed by Lankford, which the nonpartisan Tax Foundation found would hand $1.1 billion in government revenue to the fossil fuel industry over the next 10 years.
"This disastrous piece of legislation includes giveaway after giveaway for the fossil fuel industry, while cutting crucial clean energy programs that help consumers save money on their electric bills," said Alan Zibel, an oil and gas researcher with the consumer rights group Public Citizen.
In addition to this tax loophole, the Senate GOP's bill includes billions of dollars in upfront subsidies to Big Oil and cuts royalties paid by oil and gas companies for drilling on public lands. At the same time, the bill guts subsidies for wind and solar energy, including a tax credit that saved money for consumers who made their homes more energy efficient.
Through its combination of tax breaks and cuts to safety net programs like Medicaid and food stamps, the so-called "Big Beautiful Bill" constitutes a massive transfer of wealth from the poor to the rich. According to an analysis by the Congressional Budget Office last week, it would result in the richest 10% of households bringing in an extra $12,000 a year while the poorest 10% would lose nearly $1,600.
"You have got to be kidding me," tweeted the account for Americans for Tax Fairness in response to the Senate GOP's draft. "Not only does the bill gut Medicaid and SNAP to fund tax breaks for billionaires. Now it gives Big Oil MORE money while they price-gouge us."
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Split Supreme Court Won't Allow First Religious Public Charter School in US
Although another case could soon come before the high court, the ACLU still welcomed that, for now, "public schools must remain secular and welcome all students, regardless of faith."
May 22, 2025
Public education and First Amendment advocates on Thursday celebrated the U.S. Supreme Court's refusal to allow the nation's first religious public charter school in Oklahoma—even though the outcome of this case doesn't rule out the possibility of another attempt to establish such an institution.
"Requiring states to allow religious public schools would dismantle religious freedom and public education as we know it," Cecillia Wang, national legal director of the ACLU, said in a statement about the 4-4 decison. "Today, a core American constitutional value remains in place: Public schools must remain secular and welcome all students, regardless of faith."
Wang's group and other partners had filed a lawsuit over St. Isidore of Seville Catholic Virtual School on behalf of parents, faith leaders, and public school advocates. Her colleague Daniel Mach, director of the ACLU's Program on Freedom of Religion and Belief, declared Thursday that "the very idea of a religious public school is a constitutional oxymoron."
The new one-page opinion states that "the judgment is affirmed by an equally divided court," which means the Oklahoma Supreme Court's June 2024 ruling against St. Isidore remains in place. There are nine members of the U.S. Supreme Court, but Justice Amy Coney Barrett—who is part of its right-wing supermajority—recused herself from this case.
"While Justice Barrett did not provide an explanation for her recusal, it may be because she is close friends with Nicole Stelle Garnett, a professor at Notre Dame Law School who was an early adviser for St. Isidore," The New York Times noted. "Although justices sometimes provide reasons when they recuse themselves, they are not required to do so."
Law Dork's Chris Geidner warned that "a new challenge not requiring her recusal could easily return to the court in short order—especially now that the court has shown its interest in taking on the issue."
In this case, as Common Dreams reported during oral arguments last month, Chief Justice John Roberts appeared to be the deciding vote. Geidner pointed out Thursday that while it seems most likely that he sided with the three liberals, "even that could have been as much of a vote to put off a decision as a substantive ruling on the matter."
Some groups happy with the outcome in this case also highlighted that the battle is expected to continue.
"This is a crucial, if narrow, win for constitutional principles," Freedom From Religion Foundation (FFRF) co-president Annie Laurie Gaylor said in a statement. "A publicly funded religious charter school would have obliterated the wall of separation between state and church. We're relieved that, at least for now, the First Amendment still means what it says."
"The fight isn't over," Gaylor added. "The forces trying to undermine our public schools and constitutional freedoms are already regrouping. FFRF will continue to defend secular education and the rights of all Americans to be free from government-imposed religion."
Leading teachers unions also weighed in with both an amicus brief submitted to the high court and Thursday statements.
"Educators and parents know that student success depends on more resources in our public schools, not less. Yet for too long, we have seen anti-public education forces attempt to deprive public school students of necessary funding and support," National Education Association president Becky Pringle said Thursday. "We are gratified that the Supreme Court did not take the radical step of upending public education by requiring states to have religious charter schools."
American Federation of Teachers president Randi Weingarten also welcomed that the high court on Thursday let stand the Oklahoma decision, "which correctly upheld the separation of church and state and backed the founders' intention to place religious pluralism over sectarianism."
"We are grateful that it upheld the state's highest court's clear and unambiguous ruling to preserve and nurture the roots of our democracy, not tear up its very foundations," Weingarten said in a statement. "We respect and honor religious education. It should be separate from public schooling."
"Public schools, including public charter schools, are funded by taxpayer dollars because they are dedicated to helping all—not just some—children have a shot at success," she stressed. "They are the bedrock of our democracy, and states have long worked to ensure that they remain secular, open, and accessible to all."
This article has been updated with comment from the National Education Association.
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US Supreme Court Could OK Religious Public Charter School in Oklahoma
"Allowing taxpayer dollars to fund religious charter schools would put both public education and religious freedom at risk," warned one teachers union leader.
Apr 30, 2025
The U.S. Supreme Court on Wednesday heard arguments over what could become the country's first taxpayer-funded religious charter school—and opponents of the St. Isidore of Seville Catholic Virtual School renewed their warnings about the proposal.
Faith leaders, parents, and educators celebrated last June, when the Oklahoma Supreme Court ruled against establishing St. Isidore. The test case for all such schools has now advanced to the country's highest court, which has a right-wing supermajority.
Reporting on over two hours of arguments Wednesday, Law Dork's Chris Geidner wrote that "the religious supremacy movement from the right's majority on the U.S. Supreme Court—with its outside helpers—appeared likely to... OK the first religious charter school in the country."
"Justices Clarence Thomas, Sam Alito, and Brett Kavanaugh appeared eager to do so, and Justice Neil Gorsuch's past writing in a related case signaled his alignment with the move, at least in principle," Geidner detailed. "Chief Justice John Roberts—the key vote then since Justice Amy Coney Barrett has recused herself from the case—appeared to be open to the idea as well."
Other legal reporters also concluded that Roberts appears to be the "key vote," given that the three liberals—Justices Ketanji Brown Jackson, Elena Kagan, and Sonia Sotomayor—all "expressed significant reservations" about allowing a religious charter school.
It appears very likely that the Supreme Court will force Oklahoma to approve and fund a Catholic charter school that reserves the right to indoctrinate students in Catholicism, force them to attend mass, and discriminate against non-Catholics. The three liberals sound increasingly exasperated.
— Mark Joseph Stern ( @mjsdc.bsky.social) April 30, 2025 at 11:52 AM
According to The Associated Press:
If Roberts sides with the liberals, the court would be tied 4-4, an outcome that would leave the state court decision in place, but would leave the issue unresolved nationally.
If he joins his conservative colleagues, on the other hand, the court could find that the taxpayer-funded school is in line with a string of high court decisions that have allowed public funds to flow to religious entities. Those rulings were based on a different part of the First Amendment that protects religious freedom.
Roberts wrote the last three of those decisions. He acknowledged at one point that the court had previously ruled that states "couldn't exclude religious participants," suggesting support for St. Isidore.
But he also said the state's involvement in this case is "much more comprehensive" than in the earlier ones, a point that could lead him in the other direction.
American Federation of Teachers president Randi Weingarten said in a statement after the arguments that "we respect religious education and the Founders' intention in separating church and state."
"Public schools, including public charter schools, are funded by taxpayer dollars because they are dedicated to helping all—not just some—children have a shot at success," the union leader said. "They are the bedrock of our democracy, and states have long worked to ensure that they remain secular, open, and accessible to all. They are not, and never have been, Sunday schools."
"The petitioners are seeking to change that," Weingarten warned. "Religious schools should be able to operate in the U.S., but they are not public schools, and they shouldn't be able to get the benefits and the funding yet ignore the obligations and responsibilities."
"Our hope is that the justices will uphold the Supreme Court of Oklahoma's decision, correctly siding with religious pluralism over sectarianism," she concluded. "A reversal would be a devastating blow to public education and the 90% of young people who rely on it. We must preserve and nurture the roots of our democracy, not tear up its very foundations."
The country's other leading teachers union also opposes the establishment of the Oklahoma school. National Education Association president Becky Pringle said in a statement this week that "every student—no matter where they live, what they look like, or their religion—deserves access to a fully funded neighborhood public school that gives them a sense of belonging and prepares them with the lessons and life skills they need."
"Allowing taxpayer dollars to fund religious charter schools would put both public education and religious freedom at risk," Pringle asserted, "opening the door to more privatization that undermines our public education system."
Proud to join @faithfulamerica.bsky.social outside of SCOTUS ahead of oral arguments in the OK religious charter school case, which challenges whether public funds can be used to support religious charter schools. As religious Americans, we say the separation of church and state is good for both!
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— Interfaith Alliance (@interfaithalliance.org) April 30, 2025 at 10:12 AM
Chris Yarrell, an attorney at the Center for Law and Education, similarly warned in a Common Dreams opinion piece earlier this month that "if the court sides with St. Isidore, the ripple effects could be seismic, triggering a wave of religious charter school applications and fundamentally altering the landscape of public education."
In addition to fighting for a taxpayer-funded religious school, Christian nationalists in Oklahoma want to put Bibles in public school classrooms—an effort the state Supreme Court has temporarily impeded.
The court last month blocked Oklahoma's superintendent of public instruction, Ryan Walters, and education department from spending taxpayer dollars on Bibles and Bible-infused instructional materials.
“This victory is an important step toward protecting the religious freedom of every student and parent in Oklahoma," legal groups supporting plaintiffs who challenged the policy
said at the time. "Walters has been abusing his power, and the court checked those abuses today. Our diverse coalition of families and clergy remains united against Walters' extremism and in favor of a core First Amendment principle: the separation of church and state."
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