Clifford Chance
One Big Beautiful Bill Act: Implications for the environmental sector
19 August 2025
On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (the OBBBA) into law, which carries significant implications across numerous sectors, including the tax, transportation, energy, and environmental sectors. The OBBBA furthers the Trump Administration's expressed goals of reducing and streamlining environmental regulation, primarily targeting Biden-era climate policies. The most prominent being the Inflation Reduction Act (IRA), which was signed into law by President Biden on August 16, 2022, and provided significant funding for clean energy development and other climate change initiatives. Among other funding cuts, the OBBBA rescinds unallocated funding appropriated by the IRA for programs related to greenhouse gas reduction, vehicle emissions reduction, environmental reviews, and environmental justice. This represents a significant rollback of the Biden Administration's federal energy and environmental policy, creating uncertainty for funding recipients, particularly for those who have not yet received disbursements or whose projects are in progress.
This briefing summarizes the environmental implications of the OBBBA and its impact to programs administered under the IRA, Clean Air Act (CAA), and the National Environmental Policy Act (NEPA).
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