As Republicans move forward with a sweeping budget reconciliation bill aimed at funding President Donald Trump’s legislative priorities, Alaska Sen. Lisa Murkowski is emerging as a vocal opponent, urging caution on efforts to dismantle former President Joe Biden’s signature climate law, the Inflation Reduction Act.
According to Politico, Murkowski is advocating for a more measured approach to rolling back the IRA’s “clean energy” subsidies, which are now a primary target in the GOP’s proposed budget cuts. The Inflation Reduction Act, passed in 2022 without any Republican support. Murkowski voted no to the bill back then and Vice President Kamala Harris broke the 50-50 tie to pass the spending bill, which is estimated to cost more than $1 trillion by 2032 and up to $4.7 trillion by 2050. While Republicans are seeking significant savings to fund their agenda, Murkowski is warning that an overly aggressive repeal could have long-term consequences, particularly for energy projects in Alaska.
“Taking a big hammer to these credits isn’t the way,” Murkowski reportedly said to Politico, pushing for what she described as a “cautious and conscientious approach.”
Her words come at the same time Moody’s has downgraded the United States’ long-term issuer and senior unsecured credit ratings from Aaa to Aa1, stripping the US of its last top-tier credit rating; Fitch had done so in 2023, and Standard & Poor had in 2011. Moody’s cited the rising US debt burden, now over $36 trillion, persistent fiscal deficits, and political polarization as key reasons for the downgrade. Federal deficits are expected to reach nearly 9% of GDP by 2035, driven by increased interest payments, rising entitlement spending, and low revenue generation.
Murkowski’s defense of the Inflation Reduction Act landed just as House Republicans are preparing to vote on a reconciliation package that would eliminate billions in subsidies for electric vehicles, household energy efficiency improvements, and clean hydrogen and nuclear energy development.
The “Big Beautiful Bill,” as it’s known, also proposes ending the transferability of energy tax credits, which allows companies to sell the tax credits, and includes provisions to limit foreign, particularly Chinese, entities from benefiting.
Murkowski is with a small group of Republicans working behind the scenes to salvage the IRA’s “clean energy” provisions. In April, she and three other GOP senators asked Senate Majority Leader John Thune to protect certain tax credits tied to “clean energy” technologies.
The senator has previously expressed concern about retaliation from the Trump administration and remains one of the more liberal members of her party. Earlier this week she said she would work to block the bill’s provision that cut funding to Planned Parenthood, as she remains a staunch supporter of abortion on demand.