7 Powerful Impacts of Biden’s Economic Policies on U.S. Businesses

President Joe Biden’s administration has introduced several key economic policies since taking office, aimed at rebuilding the middle class, promoting clean energy, reducing inflation, and raising taxes on large corporations. These changes have sparked major shifts in the U.S. business landscape — helping some industries grow while putting pressure on others.

From green energy and infrastructure to tech and fossil fuels, businesses across America are feeling the effects. Let’s take a closer look at which sectors are benefiting, which are struggling, and what this means for the economy in 2025.

The Bigger Picture: Bidenomics Explained winners and losers in business

The term “Bidenomics” refers to President Biden’s economic strategy, focused on three main pillars:

1. Investing in infrastructure and manufacturing
2. Growing the clean energy economy
3. Making the tax system fairer

Policies under this strategy include the Inflation Reduction Act, the CHIPS and Science Act, the Infrastructure Investment and Jobs Act, and proposed corporate tax reforms. These laws have led to trillions in government spending and private sector investment, particularly in manufacturing and sustainability.

While supporters say Bidenomics is laying the foundation for long-term prosperity, critics argue that it increases government debt and burdens certain industries with higher costs.

Who’s Winers and losers?

1. Green Energy and Climate Tech

Biden’s push for clean energy is creating massive opportunities for companies focused on solar, wind, electric vehicles (EVs), batteries, and carbon capture.

• The Inflation Reduction Act (IRA) provides over $370 billion in tax credits and subsidies for green energy projects.
• Companies like Tesla, First Solar, and Rivian are seeing growth due to consumer incentives and government contracts.
• Job creation in clean energy now outpaces fossil fuel job growth by a significant margin.

Why it matters: The shift toward a low-carbon economy is accelerating, and companies in this space are well-positioned for long-term growth.

2. Construction and Infrastructure Firms

The Infrastructure Investment and Jobs Act injected $1.2 trillion into roads, bridges, public transit, broadband, and water systems. This is great news for engineering, construction, and logistics companies.

• Firms like Caterpillar, Vulcan Materials, and Jacobs Engineering have seen increased demand.
• Local contractors and suppliers are benefiting from expanded federal and state projects.

Why it matters: Public works projects are boosting demand, especially in underserved or rural regions.

3. Domestic Manufacturing and Semiconductor Companies

To reduce reliance on China and boost national security, Biden’s CHIPS Act supports U.S.-based semiconductor manufacturing with $52 billion in funding.

• Intel, Micron, and GlobalFoundries are building new plants with federal support.
• The policy is also driving investment in advanced manufacturing and automation technologies.

Why it matters: Reshoring production could create more skilled jobs and protect supply chains.

4. Labor Unions and Low-Wage Workers

Biden has been vocal about supporting organized labor and raising wages:

• Federal contractors now face a $15 minimum wage.
• Union-friendly policies have made it easier for workers to organize.
• Job training and apprenticeship programs are expanding across industries.

Why it matters: While these changes increase labor costs for some businesses, they boost worker morale and income security.

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Who’s Losing?

1. Big Tech and Billion-Dollar Corporations

The Biden administration has pushed for stronger antitrust enforcement and higher corporate taxes.

• Proposed tax hikes include a 15% minimum tax on book income for large corporations.
• The Federal Trade Commission (FTC) is increasing scrutiny of tech mergers and data practices.
• AI regulations and data privacy rules are tightening.

Impact: Companies like Meta, Amazon, and Google are facing more legal challenges and compliance costs, especially in digital advertising and consumer data use.

2. Fossil Fuel Industry

Oil, gas, and coal companies have been under pressure since Biden took office:

• Drilling on federal lands has become more regulated.
• Permits are harder to obtain.
• Carbon penalties and emissions standards are increasing.

While energy prices remain volatile, traditional energy companies are navigating a more challenging regulatory environment.

Impact: While large firms like ExxonMobil can adapt, smaller fossil fuel producers are seeing reduced profits and investment.

3. Private Equity and Hedge Funds

Financial firms are being targeted in tax reform proposals:

• The carried interest loophole is under threat.
• Higher capital gains taxes for wealthy individuals are on the table.
• The IRS has received new funding to audit high-income earners and large firms.

Impact: While still active, private equity firms are facing more scrutiny and reduced tax benefits.

4. Import-Heavy Retailers and Global Suppliers

Efforts to boost U.S. manufacturing have come with tighter trade policies:

• Tariffs on goods from China and other countries remain in place.
• New “Buy American” rules make government contracts harder for global firms to win.
• Small and mid-sized retailers that rely on imports are seeing cost increases.

Impact: Margins are shrinking for companies that can’t shift production or pass costs to consumers.

Mixed Outcomes: Small Businesses

Small businesses are in a complex position:

Pros:

• Access to clean energy grants, local infrastructure projects, and workforce training
• Increased consumer demand in growing sectors

Cons:

• Higher wage costs
• More complex regulations
• Tougher competition from large firms with more compliance resources

Whether a small business wins or loses under Bidenomics depends largely on its industry, location, and flexibility to adapt.

What Lies Ahead?

The future of Biden’s economic impact depends on several factors:

• The outcome of the 2024 election and changes in congressional control
• The ability to manage inflation and reduce interest rates
• Global supply chain recovery and geopolitical stability
• Long-term success of public investments in infrastructure, climate, and innovation

If Biden’s policies continue without major opposition, the next few years could see continued growth in green tech, manufacturing, and unionized labor — but also more pressure on high-carbon, high-margin industries.

Final Thoughts

President Biden’s economic agenda has reshaped the business environment in the United States. While it offers new opportunities in green energy, infrastructure, and domestic production, it also challenges sectors like fossil fuels, Big Tech, and high-income finance.

Winners are those who align with sustainability, long-term investment, and workforce development. Losers may include those slow to adapt to new rules, labor costs, or shifting trade dynamics.

As the economy continues to evolve, businesses that stay informed and flexible will be best positioned to thrive in the Biden-era landscape.

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