Inside the Greenhouse is a monthly update on FCNL’s environmental advocacy and the climate crisis.
House Appropriations Committee Releases Funding Bill Covering International Climate Financing
The FY26 National Security, Department of State, and Related Programs (NSRP) bill includes continued, but substantially reduced, investments in climate and environmental programs. There is $131.8 million for sustainable landscapes to protect forests and marine resources, $125 million for renewable energy through the Clean Technology Fund, and $192 million for climate adaptation and disaster preparedness in high-risk regions. Despite significant reductions, the bill preserves key international climate and conservation funding that the administration had proposed eliminating, without imposing new anti-climate policy restrictions. The House passed the package 341-79 on January 14, and it’s making its way to the Senate.
Minibus Largely Spares EPA Funding but Cuts Deeper into Interior
House and Senate appropriators unveiled another fiscal 2026 spending package to fund the Interior Department and the Environmental Protection Agency (EPA). Compared with earlier Republican proposals, the measure largely preserves EPA funding, while imposing modest additional cuts at Interior. EPA would receive $8.816 billion, about 4 percent below its 2025 level, but more than double the administration’s proposed budget.
This package shields funding for several programs. For example, financing for geographic restoration initiatives would rise to $690 million, reversing major proposed cuts. State and tribal assistance grants will similarly see increased funding of up to $4.41 billion, including support for region-specific environmental and infrastructure projects.
Unfortunately, lawmakers did accept sharp cuts to the Superfund program, which pays for the cleanup of hazardous waste sites across the country. Thankfully, we expect reinstated excise taxes on major polluters to offset the cut by imposing fees on sales of polluting substances. The bill also directs EPA to maintain federal oversight of the Energy Star program rather than privatizing it.
Interior would receive $14.54 billion, slightly less than the $14.8 billion in 2025, but well above the administration’s request. The bill still trims funding for land management, parks, science programs, and renewable energy development, while increasing support for oil and gas activities.
News and Updates
Oil Company Receives Record Fine for 2023 Louisiana Oil Spill
On January 5, federal pipeline regulators imposed a record civil penalty on Panther Operating Co. over safety problems that led to a massive 2023 oil spill off the Louisiana coast. Panther Operating Co. runs over a thousand miles of crude oil and gas pipelines through onshore and offshore areas in the Gulf of Mexico. The spill released roughly 1.1 million gallons of crude oil into the Gulf of Mexico.
The Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) is seeking $9.6 million, the largest fine ever proposed under federal pipeline safety enforcement. Transportation Secretary Sean Duffy said the action underscores the administration’s intent to pursue serious penalties when operators fail to meet regulatory standards.
U.S. Withdraws from Landmark Climate Change Treaty
President Donald Trump announced that the United States will withdraw from the United Nations Framework Convention on Climate Change (UNFCCC), the main global agreement guiding international efforts to address climate change. The decision would make the U.S. the only country to ever leave the treaty.
The UNFCCC, adopted in 1992, is the foundation for international climate talks, including the Paris Agreement. The U.S. withdrawal will become official one year after notice is submitted to the United Nations.
The move is part of a broader withdrawal from dozens of international organizations the White House claims promote policies that conflict with U.S. sovereignty and economic priorities. Trump officials have argued that global climate agreements place unfair limits on the U.S. while offering little benefit in return.
What We’re Reading:
- Venezuela Will Ship Sanctioned Oil to U.S. Indefinitely | CNBC
- Ørsted Files Additional Lawsuit Challenging Stop-Work Order on Sunrise Wind | Maritime Executive
- U.S. Ex-Im Bank loans for Venezuela Would Face Creditworthiness Hurdle | Politico
- WA Dept. of Commerce Corrects Climate Report Data after Error Vastly Overstates Emission Cuts | King5