EV and renewable investments in the US are stalling – and May was another tough month. Businesses canceled $1.4 billion worth of clean energy factories and projects last month, according to the latest numbers from E2 and the Clean Economy Tracker. That pushes total canceled investments to $15.5 billion this year, wiping out nearly 12,000 potential jobs.
The reason for the slowdown: the Senate is preparing to vote on the “One Big Beautiful Bill Act,” a Republican-led tax and spending bill to raise taxes on clean energy and roll back key tax credits. A similar measure passed in the Republican-majority House. Those credits, passed in 2022, had helped drive a surge in US EV and renewable manufacturing.
As a result, renewable and EV momentum are reversing. GM scrapped plans to build EVs at its Tonawanda plant in New York. Instead, the automaker will use that money to expand production of gas-powered V8s.
Republican-led districts are ironically losing out the most. In 2025 alone, more than $9 billion in clean energy investments and nearly 10,000 jobs have been canceled, delayed, or closed in GOP districts.
May’s cancellations weren’t just on paper. About 600 workers lost their jobs thanks to the five site closures announced last month.
“The consequences of continued policy uncertainty and the expectation of higher taxes on clean energy businesses are becoming painfully clear,” said E2’s communications director, Michael Timberlake. “These cancellations are just the first shoe to drop.”
Still, there were some bright spots. Companies announced $450 million in new clean energy investments last month, including:
- Rivian’s $120 million supplier park in Illinois, expected to bring 100 new jobs
- A $140 million electricity transformer factory from Prolec-GE Waukesh in North Carolina, which could create 330 jobs
If completed, the eight new projects announced in May would create at least 1,310 permanent jobs if they come to fruition.
So far in 2025, Republican districts have claimed the majority of clean energy activity: 62% of project announcements, 71% of jobs, and 82% of investment.
But if Congress repeals clean energy tax credits, everyone will feel the impact. The Clean Energy Buyers Association estimates households could pay $110 more a year for electricity, and businesses could see energy costs spike by 10% or more.
Since the Inflation Reduction Act passed in August 2022, 397 major clean energy projects have been announced across 42 states and Puerto Rico. These projects total nearly $132 billion in planned investment and 123,000 permanent jobs. But 53 have already been canceled, closed, or scaled back, taking $18.2 billion and 21,000 jobs with them.
Read more: US solar just had a record-breaking Q1 but the GOP bill could wreck it
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