The Trump administration has proposed major federal budget cuts for 2026, aiming to slash over $160 billion, including deep reductions to climate and clean energy programs. The plan targets more than $15 billion in previously approved funding for carbon capture and renewable energy, along with $6 billion earmarked for electric vehicle charging stations. 

According to the White House, these programs failed to deliver results and should instead rely on private sector leadership guided by market demand. The proposal would shift focus toward boosting domestic production of fossil fuels, nuclear energy, and critical minerals. 

Additional cuts would hit the EPA, USDA, and NOAA, reducing support for environmental research, farm conservation, and food aid abroad. Critics argue the plan undermines public health and rural development, while its passage in Congress remains uncertain.

Finsum: Obviously ESG is going to take an initial hit with the administration, but it has always remained a very long term investment, and could be a good time to buy low.