In a symbolic and high-profile move, Donald Trump signed the “One Big Beautiful Bill Act” on America’s Independence Day (July 4), signaling a sharp shift in U.S. energy policy. The bill provides sweeping tax incentives for fossil fuels—especially natural gas—and expands access to federal lands for energy development.
At first glance, the bill breathes new life into natural gas, a resource that currently powers 43% of the U.S. electricity grid and plays a key backup role for renewable energy. But experts warn that without the infrastructure—especially pipelines and permitting reform—this push could backfire.
Green Energy Takes a Hit as Gas Advances
While natural gas gains support, the new law slashes incentives for clean energy sources like wind and solar. As of June 2026, new renewable projects will no longer qualify for tax credits. Billions of dollars in clean energy investments made under President Biden’s Inflation Reduction Act have also been repealed.
According to Princeton University’s REPEAT Project, this rollback could reduce future clean power capacity by over 70,000 megawatts—enough to power nearly 50 million homes.
That matters because natural gas has long relied on its partnership with renewables to position itself as a “cleaner” fossil fuel. Weakening renewables undermines that narrative and could, paradoxically, limit gas’s future role in a decarbonized grid.
The Real Bottleneck: Infrastructure
While the new bill delivers financial incentives for gas, it fails to address the sector’s biggest challenge: infrastructure. Today, pipeline shortages and slow permitting already make it difficult to get gas where it’s needed—especially as coal plants retire and demand for electricity surges.
For example, the Columbia Gas Transmission pipeline in West Virginia took eight years to get final approval. According to the U.S. Department of Energy, pipeline capacity will grow by only a third of the rate seen between 2000 and 2015.
“The permitting system is fundamentally broken,” says Dustin Meyer of the American Petroleum Institute. “It’s holding back oil, gas, and renewables alike.”
A Divided Global Response
Globally, the reaction is mixed. While Europe still imports American LNG to make up for lost Russian supply, many countries—like Germany, France, and the Netherlands—are accelerating their shift to wind, solar, and battery storage. New gas projects frequently face local opposition and environmental pushback.
Even in the U.S., states like California are resisting the federal framing of natural gas as “clean.” Despite relying on gas for more than half of its electricity, California aims to cut emissions by 48% by 2030 and reach net-zero by 2045. Gas doesn’t fit neatly into that vision.
“California is going to reject any federal labeling of gas as green,” said Austin Hastings of PG&E. “It’s still a fossil fuel, even if it’s the cleanest one.”
Can Gas Secure Its Future?
Some experts believe natural gas must embrace its role as a partner to renewables, not their competitor. This means investing in technologies like carbon capture, green hydrogen, and future-ready power plants that can adapt to a lower-carbon world.
But the global market is already shifting. According to the International Energy Agency (IEA), $2.2 trillion will be invested in clean energy this year—more than double the amount going to fossil fuels.
Trump’s move to double down on natural gas while cutting support for renewables may end up backfiring. Without infrastructure upgrades, faster permitting, and alignment with the broader energy transition, the U.S. risks making its power grid more fragile, not stronger.
As one utility CEO put it: “We rely on natural gas for stability. But calling it ‘renewable’ won’t convince anyone.”
The U.S. has now placed a major bet on natural gas. But without pipelines and a collaborative clean energy strategy, it’s like building a bridge without guardrails—and the road ahead may be far more dangerous than it seems.
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