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In an aerial view, natural gas is flared off during an oil-drilling operation in the Permian Basin oil field on March 12, 2022 in Stanton, Texas.
(Photo by Joe Raedle/Getty Images)
'Paying for Climate Chaos': Report Exposes $35 Billion a Year in US Handouts to Big Oil
"It's time to stop paying polluters to wreck our planet," said one environmental advocate.
Sep 09, 2025
Research and advocacy organization Oil Change International on Tuesday released a new report documenting the massive subsidies that fossil fuel companies receive from the US government every year.
The report, titled "Paying for Climate Chaos," found that the government will hand out $34.8 billion to big oil and gas companies this year, and that these companies are set to get almost an additional $4 billion in subsidies thanks to the so-called "One Big Beautiful Bill Act" passed by congressional Republicans and signed into law by US President Donald Trump earlier this year.
Among the added benefits fossil fuel companies receive from the GOP's budget law are $1.2 billion in the form of reduced royalty rates for extracting oil and gas on public lands; $720 million from a delay in the implementation of a per-ton methane emissions fee; and $359 million from the expansion of a corporate tax exemption to include categories such as carbon capture and hydrogen storage.
The report found that total subsidies to fossil fuel companies had grown significantly since Oil Change International first began studying the issue back in 2017 when subsidies totaled a comparatively modest $20 billion.
What's more, it noted that the price tag for these subsidies only looks set to increase over the next decade.
"Many subsidies identified are projected to soar over the next decade and beyond," Oil Change International writes. "If federal leaders fail to act, fossil fuel production subsidies could skyrocket to hundreds of billions of dollars per year. This is due to the recent introduction of new subsidies for carbon capture, utilization, and storage and hydrogen, which increase fossil fuel production."
The report concluded by urging federal lawmakers to repeal the billions handed out in fossil fuel subsidies every year, including the recently passed ones for carbon capture and fossil hydrogen. It also said a future administration should "end subsidies across federal agencies, including the US Department of Energy, US Army Corps of Engineers, Bureau of Land Management, Bureau of Ocean Energy Management," and others.
Collin Rees, US campaign manager for Oil Change International, called these subsidies particularly wasteful in light of cuts Republicans made to programs such as Medicaid and the Supplemental Nutritional Assistance Program as part of their budget law.
"Congress must stand up to big oil and gas, eliminate fossil fuel subsidies, and redirect those billions toward the things our communities actually need: healthcare, housing, and clean, affordable, renewable energy," he said. "It's time to stop paying polluters to wreck our planet. The Trump administration's fossil-fueled corruption and attacks on working people provide an opportunity for a new agenda grounded in a bold vision to end the fossil fuel era."
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big oilclimate emergencyoil change internationalone big beautiful bill actrepublican partyfossil fuels
Research and advocacy organization Oil Change International on Tuesday released a new report documenting the massive subsidies that fossil fuel companies receive from the US government every year.
The report, titled "Paying for Climate Chaos," found that the government will hand out $34.8 billion to big oil and gas companies this year, and that these companies are set to get almost an additional $4 billion in subsidies thanks to the so-called "One Big Beautiful Bill Act" passed by congressional Republicans and signed into law by US President Donald Trump earlier this year.
Among the added benefits fossil fuel companies receive from the GOP's budget law are $1.2 billion in the form of reduced royalty rates for extracting oil and gas on public lands; $720 million from a delay in the implementation of a per-ton methane emissions fee; and $359 million from the expansion of a corporate tax exemption to include categories such as carbon capture and hydrogen storage.
The report found that total subsidies to fossil fuel companies had grown significantly since Oil Change International first began studying the issue back in 2017 when subsidies totaled a comparatively modest $20 billion.
What's more, it noted that the price tag for these subsidies only looks set to increase over the next decade.
"Many subsidies identified are projected to soar over the next decade and beyond," Oil Change International writes. "If federal leaders fail to act, fossil fuel production subsidies could skyrocket to hundreds of billions of dollars per year. This is due to the recent introduction of new subsidies for carbon capture, utilization, and storage and hydrogen, which increase fossil fuel production."
The report concluded by urging federal lawmakers to repeal the billions handed out in fossil fuel subsidies every year, including the recently passed ones for carbon capture and fossil hydrogen. It also said a future administration should "end subsidies across federal agencies, including the US Department of Energy, US Army Corps of Engineers, Bureau of Land Management, Bureau of Ocean Energy Management," and others.
Collin Rees, US campaign manager for Oil Change International, called these subsidies particularly wasteful in light of cuts Republicans made to programs such as Medicaid and the Supplemental Nutritional Assistance Program as part of their budget law.
"Congress must stand up to big oil and gas, eliminate fossil fuel subsidies, and redirect those billions toward the things our communities actually need: healthcare, housing, and clean, affordable, renewable energy," he said. "It's time to stop paying polluters to wreck our planet. The Trump administration's fossil-fueled corruption and attacks on working people provide an opportunity for a new agenda grounded in a bold vision to end the fossil fuel era."
Research and advocacy organization Oil Change International on Tuesday released a new report documenting the massive subsidies that fossil fuel companies receive from the US government every year.
The report, titled "Paying for Climate Chaos," found that the government will hand out $34.8 billion to big oil and gas companies this year, and that these companies are set to get almost an additional $4 billion in subsidies thanks to the so-called "One Big Beautiful Bill Act" passed by congressional Republicans and signed into law by US President Donald Trump earlier this year.
Among the added benefits fossil fuel companies receive from the GOP's budget law are $1.2 billion in the form of reduced royalty rates for extracting oil and gas on public lands; $720 million from a delay in the implementation of a per-ton methane emissions fee; and $359 million from the expansion of a corporate tax exemption to include categories such as carbon capture and hydrogen storage.
The report found that total subsidies to fossil fuel companies had grown significantly since Oil Change International first began studying the issue back in 2017 when subsidies totaled a comparatively modest $20 billion.
What's more, it noted that the price tag for these subsidies only looks set to increase over the next decade.
"Many subsidies identified are projected to soar over the next decade and beyond," Oil Change International writes. "If federal leaders fail to act, fossil fuel production subsidies could skyrocket to hundreds of billions of dollars per year. This is due to the recent introduction of new subsidies for carbon capture, utilization, and storage and hydrogen, which increase fossil fuel production."
The report concluded by urging federal lawmakers to repeal the billions handed out in fossil fuel subsidies every year, including the recently passed ones for carbon capture and fossil hydrogen. It also said a future administration should "end subsidies across federal agencies, including the US Department of Energy, US Army Corps of Engineers, Bureau of Land Management, Bureau of Ocean Energy Management," and others.
Collin Rees, US campaign manager for Oil Change International, called these subsidies particularly wasteful in light of cuts Republicans made to programs such as Medicaid and the Supplemental Nutritional Assistance Program as part of their budget law.
"Congress must stand up to big oil and gas, eliminate fossil fuel subsidies, and redirect those billions toward the things our communities actually need: healthcare, housing, and clean, affordable, renewable energy," he said. "It's time to stop paying polluters to wreck our planet. The Trump administration's fossil-fueled corruption and attacks on working people provide an opportunity for a new agenda grounded in a bold vision to end the fossil fuel era."
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