Progressives push for fossil subsidy repeal in spending bill

A group of House progressives is renewing a push for Democrats’ multi-trillion spending bill to repeal certain fossil fuel subsidies that have been on the books for years. 

In a new letter to congressional leadership, six top members of the Congressional Progressive Caucus, including Chairwoman Pramila Jayapal (D-Wash), said that they were “dismayed” that the House’s current version of the legislation didn’t include such measures. 

“There is no reason that the fossil fuel industry deserves special privileges over other businesses,” they wrote.

Specifically, they call to end certain benefits for “intangible” costs like wages, repairs, supplies and another that lets some companies deduct as much as 15 percent of the revenue they get from a well.

While Senate committees haven’t yet released their versions of the spending bill, Senate Majority Leader Chuck Schumer’s (D-N.Y.) office has indicated that the package is expected to address fossil fuel subsidies. 

The upper chamber’s finance committee put forward legislation earlier this year tackling the subsidies. 

Wednesday’s letter, signed by Jayapal, Ro Khanna (D-Calif.), Ilhan Omar (D-Minn.), Earl Blumenauer (D-Ore.), Barbara Lee (D-Calif.) and Marie Newman (D-Ill.), is not the first time House Democrats have pushed for such a policy. 

More than 50 Democratic members pushed for similar action in a letter in August. The Biden administration has also called for the elimination of fossil fuel subsidies. 

Meanwhile, the future of the $3.5 trillion bill remains up in the air as moderates, particularly in the Senate where Democrats can’t lose a single vote, have expressed reticence about it.