Tuesday Talkers 7/15: De-Energizing Rural America
Plus, China Switches on a Renewable Powerhouse, Inflation Woes Worsen From the Trade war, Texas Flooding, Number of the Week, and more...
In case you missed it, last week was OCP’s fourth annual Rural Progress Summit with three days of interesting and informative programming. Attendees had the opportunity to tune into various conversations on everything from a Farm Bill discussion to a panel with young politicians from across the U.S. Additionally, several noteworthy guests joined us to share their perspectives and expertise, including former Secretary of Transportation Pete Buttigieg, former Senator Sherrod Brown (D-OH), Senator Martin Heinrich (D-NM), Senator Cory Booker (D-NJ) and more. You can check out all the panels on our YouTube channel.
Here are a few important updates…
DE-ENERGIZING RURAL AMERICA
It’s been a little over a week since President Trump’s “One Big Beautiful Bill” became law. Now, experts are taking a closer look at the impact this legislation will have on America. In particular, the energy cuts in the bill will raise costs, stifle jobs and industry growth, and threaten investments in rural communities across the country. The legislation includes massive cuts to a renewable energy incentive structure established by former President Biden’s Inflation Reduction Act. Additionally, “tax credits for commercial wind and solar projects will phase out five years ahead of schedule.” As a result of these changes, the cost of electricity is expected to increase by 9.2% across residential, commercial, and industrial sectors in the contiguous United States, according to the National Economic Research Associates. The mega bill also rescinds billions of dollars of funding for community-level grants and implementation of several climate and emissions-reduction programs with funding earmarked for rural communities. As reported by The Daily Yonder, “at least 271 wind and solar projects slated for development in rural areas in 40 states are affected by the new legislation’s federal tax policy changes.”
The policies being enacted by the Trump administration will have hard-hitting, lasting effects on rural America, small communities, mom-and-pop energy businesses, and more. Once again, rural Americans will suffer the blow of Republicans sweeping, drastic policies. Our country needs more energy from various sources, especially clean energy, to continue to improve our energy infrastructure. Cutting back on innovation is not the answer. Then again, it appears the Trump administration’s answer to any issue is immediately cut back with no regard for the repercussions.
CHINA SWITCHES ON A RENEWABLE POWERHOUSE
Meanwhile, China is poised to leave the U.S. in the renewable energy dust. Two weeks ago, China brought a solar power facility online that incorporates next-generation sodium ion batteries that will not only generate power but also store it efficiently for later use. The facility also incorporates an advanced dynamic charging control system that automatically moderates the power supply between direct supply, storage, and surge mode to provide a smooth, stable supply of energy to support the electric grid.
This first of its kind facility will produce enough power to supply the equivalent of 270,000 households every day. The use of sodium ion batteries will allow battery systems to be widely deployed that are not as dependent on the harder to source lithium in other advanced batteries. Importantly this will lower the cost of batteries by approximately 80%.
INFLATION WOES WORSEN AS THE TRADE WAR MARCHES ON
The Consumer Price Index report for June showed an increase in prices of 2.7% from a year ago. The reflects the across-the-board price increases that consumers are seeing in food, housing and durable goods. The .3% month-over-month increase from May is slightly higher than economists had forecast. Notably, the 3% increase in the price of food reveals the cost of President Trump’s tariffs beginning to hit consumers wallets.
These numbers show clear signs that the president’s tariffs and trade war are impacting the American economy. The June CPI report is compounded by the continued uncertainty in the labor market. The mixed signals in last month’s employment numbers indicate that the American economy remains in a vulnerable state. The unpredictable nature of our tariff and trade policy, combined with the inconsistent withholding of congressionally mandated funding for vital programs, threatens to tip the economy into a recession.
THE TESTING TIMES OF THE TEXAS FLOODS
Over the weekend, central Texas experienced the return of heavy rain just ten days after the devastating floods from July 4 that took over 130 lives. Currently, more than 160 remain unaccounted for. The rain from the weekend led to more flooding along the Llano, Lampasas, and San Saba rivers and caused some rescuers to halt search operations for victims of the deadly floods. On Sunday, Texas Governor Greg Abbot said the state was making rescues in Lampasas, San Saba, and Schleicher Counties and evacuations were underway in Lampasas, Menard, Kimble, and Sutton Counties.
The tragedy of the Fourth of July weekend flood that destroyed Camp Mystic has raised questions about whether there was more that local officials could have done to warn people in flood zones. Senators Ruben Gallego (D-AZ) and Richard Blumenthal (D-CT) sent a letter to the Department of Homeland Security’s Inspector General calling for an investigation into Secretary Kristi Noem’s cost-control measures and how the policy may have affected FEMA’s response to the devastating flooding. POLITICO reports “this criticism comes as the agency balances months of attacks from Trump – who has threatened to eliminate it – with its response to one of the deadliest floods in the country’s history.” This natural disaster is yet another nightmarish example of the effects of climate change and the importance of having adequate disaster prevention and management efforts in place.
NUMBER OF THE WEEK
724: The number of tornadoes that have taken place so far as of May 22.
Additionally, at least 35 people have died from tornadoes so far this year. Many National Weather Service (NWS) locations are facing operational challenges as a result of the recent workforce reductions of over 600 NWS employees. All of these facts highlight the growing climate/weather crisis our country is facing and the need for knowledgeable weather experts and entities. Unfortunately, the National Weather Services is another agency on the Trump administration’s cutting block. No agency is safe. While natural disasters are happening all over the U.S., they are disproportionally impacting rural communities.
WHAT WE’RE READING
The Daily Yonder: Mobile Medical Units Help Deliver Women’s Healthcare in Rural Southeast Texas
Camden News: Report Finds 30 of Arkansas’ 47 Rural Hospitals at Risk of Closure Within 6 to 7 Years
Post Bulletin: ‘Seismic’ Medicaid Changes Will be Rough on Rural Hospitals
The Hill: Hospitals Across the Nation Brace for Medicaid Cuts Under ‘Big, Beautiful’ Law
Politico: Senate Democrats Want Probe of FEMA Cost-Control Policy After Texas Flood Tragedy
NBC News: Supreme Court Allows Trump Administration to Implement Widespread Education Department Layoffs
States Newsroom: Critics say Michigan’s plan to open mental health contracts to bidding will outsource local care
States Newsroom: Business groups are spending big to oust two Democrats in WA Senate
States Newsroom: Trump requests 93% cut to Appalachian Regional Commission. Ohio would take a huge hit.
The American Prospect: GOP Wrecking Ball Slams Through Medical System
The American Prospect: Trump Vows to Create More Blackouts
ProPublica: States Fear Critical Funding From FEMA May Be Drying Up
truthout: The US Public Loves the National Park Service. Trump Is Destroying It Anyway.
Mother Jones: Red States, Defying Reality, Are Reclassifying Gas as a “Green” Fuel