Katrina Trinko --- The Daily Signal
President Obama released his budget for fiscal year 2016 today. We’ll be continuously updating this post this afternoon with Heritage Foundation experts’ takes on the budget.
Reject the Billion Dollar Climate Fund Wealth Transfer
President Obama’s budget proposes $1.29 billion for the Global Climate Change Initiative. $500 million of that money would go to the United Nations Green Climate Fund, which gives money to developing countries to deal with the alleged effects of global warming. Setting the reality that the planet is not headed toward calamitous warming aside, the best way to help developing countries is not through wealth transfers, but by growing their respective economies. More economic freedom that provides greater wealth and higher standards of living will allow developing countries to actually develop and build houses and buildings more resistant to natural disasters.
Instead of establishing green funds, Congress and the administration should commit to the principles rooted in the Heritage Foundation’s Index of Economic Freedom to grow the American economy and economies abroad. Policies that sustain the four pillars of economic freedom—rule of law, limited government, regulatory efficiency and open markets—are more successful not only in stimulating economic growth and innovation, but also in gaining access to energy, improving the environment and helping countries use energy more efficiently. — Nicolas Loris
Block and Strip Away Funding for Climate Change Regulations
When the Obama administration announced its climate change regulations for America’s power sector, they claimed these regulations would force companies to make investments that would be profitable and save families and businesses money. Then why does President Obama’s budget propose $4 billion in handouts for states that exceed the carbon dioxide emission reduction targets outlined in the Clean Power Plan? If these regulations are so good for the states’ economies, they shouldn’t need extra help from Washington and from the taxpayers. But that’s not really the case.
The fact of the matter is the administration’s climate plan is a loser for all states, some more than others. Regulations on new and existing power plants will drive up the cost of affordable, reliable energy. Families would pay more to use less electricity and businesses will absorb higher costs or pass them onto consumer. Simply put, consumers would consume less and producers would produce less, resulting in lower income, reduced job creation and lost economic growth. In fact, several states have already made announcements planning for higher energy costs as a result of the new power plant regulations. And the plan will make no meaningful difference to actually affect the climate.