Lubbock Times

On September 20, 2024, the House Budget Committee, chaired by Jodey Arrington (R-TX), convened a hearing titled "The Cost of the Biden-Harris Energy Crisis" to examine the financial impacts of current energy policies.

Chairman Arrington opened the discussion with a critical view on the Inflation Reduction Act (IRA). He questioned, “What do you think their [working class families] response would be to listen to his [Mr. Higgins] statement, that the Inflation Reduction Act (IRA) has done its job, and my colleague and friend's statement that we should celebrate this record of energy success?”

Donna Jackson provided testimony highlighting economic struggles: “None of the people that I talk to are celebrating. In fact, I can tell you right now that most of the people that I talk to are not even living paycheck to paycheck. They're living paycheck to Wednesday, and they have to borrow and are already underwater before they can even get to the next week. Everybody is feeling the burden of high energy prices and high food costs; nobody feels like they're getting ahead. Everybody has depleted their savings.”

Rep. Greg Lopez (R-CO) raised concerns about escalating costs associated with the IRA: “The IRA was supposed to cost $270 billion, then it was supposed to cost $360 billion, and now it’s $492 billion. It reduces tax revenue and ends up with a final cost of 1.8 trillion over the 10-year window.” Donna Jackson responded critically about fund allocation: “If it was a private industry, it would be bankrupt... A lot of the ways the money is being spent, the environmental justice money, 90 percent went to NGOs and never hit the community.”

Rep. Ralph Norman (R-SC) discussed federal land policies with Diana Furchtgott-Roth: “Ms. Furchtgott-Roth, you mentioned that Biden has made it a cornerstone of this administration to lock up 30 percent of federal lands. Why is this such a dangerous idea?” Furchtgott-Roth replied: “It takes away people's property... It increases global emissions because we cannot produce clean natural gas and export it.”

Rep. Chip Roy (R-TX) addressed subsidies in energy policy with Alex Epstein: “The subsidies in the IRA...are making it economically less feasible for people to invest in natural gas production... What would be the impact?” Epstein noted: “It forces people to pay for more expensive vehicles... The biggest cost we haven't covered yet is the cost to the grid because we're artificially restricting reliable electricity supply.”

Rep. Lloyd Smucker (R-PA) highlighted Pennsylvania's energy sector challenges: “Fracking supports 123,000 jobs and generates $41 billion in economic activity... Yet despite these resources, households are spending almost $100 more on energy per month.” He expressed concerns about proposed EPA rules affecting electric reliability.

Rep. Glenn Grothman (R-WI) queried Donna Jackson on vehicle trade-ins: “When you do want to buy a new car...is it right that trade-in value for an electric car is less than for a combustion engine car?” Jackson confirmed lower trade-in values for electric cars compared to gas-powered ones.

The hearing underscored criticisms against Biden-Harris Administration's policies which were said to hinder U.S. energy independence and elevate costs for low- and middle-income families.

The House Budget Committee aims at reducing unnecessary spending on green initiatives while advocating for American-made energy solutions.