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Government Policies

U.S. government seeks to cut funding for International Energy Agency

Last updated: July 28, 2025 4:00 am
Published: 9 months ago
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(Bloomberg) — House Republicans are moving forward with plans to pull U.S. funding for the International Energy Agency, saying the group has abandoned objectivity when it comes to projecting the growth of clean energy.

A bill approved by a key House committee last week would shut off U.S. funding for the Paris-based organization, which receives about $6 million annually, or about 14% of its budget, from Washington.

“The committee finds that the agency has abandoned objectivity in the critical energy-supply information it produces and, instead, has pursued politicized information to support climate policy advocacy,” Republicans on the House Appropriation Committee wrote in a formal bill report. “This well-documented shift by the agency undermines decision-making by policymakers and threatens energy security and the economic interests of the United States.”

It remains to be seen if the Senate, where the bill would need support from Democrats, will go along with the plan, which was included in the House’s fiscal year 2026 legislation funding the Department of State as well as international programs.

In a statement, the IEA said that it was taking “note of the bill and will continue to monitor the ongoing legislative process in the U.S. Congress.” The group added that its “commitment to energy security is as strong as ever, as demonstrated by our agile responses to recent crises and expanding work on critical minerals supply security. And the world-class energy data and analysis we provide are the result of rigorous and objective work.”

The group, an autonomous body within the framework of the Organization for Economic Co-operation and Development, was established in response to the 1970s oil crisis to enhance energy security. Aside from the U.S., its members include the United Kingdom, Japan, Canada and 28 other nations.

The IEA has stirred controversy among U.S. conservatives in recent years as its long-term projections began to take into account more active government policies to shift away from fossil fuels. The agency has predicted that global oil demand will plateau this decade as electric-vehicle fleets expand and other measures are adopted to reduce emissions and combat climate change.

Among the Republican critics are Energy Secretary Chris Wright, who said in a recent interview the U.S. would withdraw its membership unless the agency made reforms to the way it operates.

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