The EPA's major climate policy rollback

Summary

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Podcast Summary: Marketplace Morning Report

Episode: “The EPA’s Major Climate Policy Rollback”
Date: February 10, 2026
Host: David Brancaccio
Correspondents/Guests: Nancy Marshall Genzer, Jared Walczak (Tax Foundation), BBC’s Gabrielle Sungolate

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Overview

This episode centers on a major rollback in US climate policy by the Environmental Protection Agency (EPA) under President Trump, notably the planned revocation of the key scientific finding that underpins greenhouse gas regulation. The show also explores how state taxes are diverging from recent federal changes and touches briefly on geopolitical trade tensions and financial secrecy in relationships.

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Key Discussion Points & Insights

1. EPA’s Climate Policy Rollback

(Starts at 00:46)

• News: The EPA is set to revoke the “endangerment finding,” a cornerstone of climate regulation, which since the Obama era established greenhouse gases as a public health threat.
  • “This scientific determination the Trump administration is expected to revoke is called the endangerment finding. It dates back to the Obama administration and it says that greenhouse gases are a threat to public health.” – Nancy Marshall Genzer (01:13)
• Impact: The rollback will eliminate reporting, measuring, and compliance requirements for vehicle emissions but, for now, leaves power plant regulations untouched.
  • “The final rule would wipe away reporting, measuring and compliance requirements for greenhouse gas emissions of vehicles. The paper says it wouldn't affect the regulations and emissions from power plants for now.” – Nancy Marshall Genzer (01:38)
• Legal and Policy Fallout: Environmental groups are expected to challenge the decision in court. Some states might respond by crafting their own climate rules.
• Quote from Environmental Defense Fund:
  • “The repeal of the finding will allow more climate pollution leading to deadly and costly extreme weather.” (01:59)

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2. Geopolitical & Trade Tensions

(Starts at 02:15)

• US-Canada Bridge Dispute: President Trump threatens to block opening a new, Canadian-funded bridge between Ontario and Michigan, insisting the US be “fully compensated.”
  • “Mr. Trump said he wouldn't allow it to open until, in his words, the US had been fully compensated for everything Washington had given to Canada. It isn't clear what that means.” – Gabrielle Sungolate, BBC (02:32)
• Broader Criticisms: President Trump continues to criticize Canadian trade practices and cautions Canadian Prime Minister Mark Carney against deepening ties with China, especially after Carney’s recent trip to Beijing.

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3. State Tax Code Divergence Post-Federal Tax Reform

(Starts at 04:29)

• Main Issue: Following sweeping federal tax changes in the previous summer, states are grappling with whether to automatically align (“conform”) with federal changes or not.
• Expert Guest: Jared Walczak, Tax Foundation
• Key Insights:
  • Most states base their tax code on the federal system but with different levels of conformity and often rely on an outdated version of the federal code.
    • “Most states conform in some way to the federal tax code, but they differ in a lot of details. Like on things like the standard deduction, there are a lot of points of divergence.” – Jared Walczak (05:08)
  • Many new federal deductions for tips, overtime, auto loan interest, or the “senior bonus” are not automatically adopted by states, resulting in uneven tax savings for residents.
    • “Most states are not automatically in line to bring in the new deductions...They're just not in a section that most states bring in.” – Jared Walczak (05:41)
  • States hesitate to adopt federal changes due to potential revenue losses, especially considering targeted relief measures like the tips deduction may not broadly help low-income residents.
    • “If we were going to provide that relief, couldn't we do it better on our own? And many [states] aren't going to decide to affirmatively adopt what the federal government adopted.” – Jared Walczak (06:43)
• Which States Conform Closely?:
  • States like Colorado, Idaho, Iowa, and Montana start their calculations from federal taxable income, closely aligning with federal changes.
  • “Those states and a few others begin their own income tax calculations with federal taxable income. Most states begin with adjusted gross income. ... These deductions we're talking about, they sit in between AGI and federal taxable income. So if a state begins its own income tax return with federal taxable income, these are in unless they change their law.” – Jared Walczak (07:03)
• States with No Income Tax:
  • Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Wyoming.
    • “Eight states have no income tax. If you live there, you know—Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming.” – David Brancaccio (07:37)
  • Washington taxes capital gains for higher earners.
  • When considering all taxes, the lowest-burden states are Alaska, New Hampshire, Wyoming, and Tennessee; Florida sometimes ranks among the lowest depending on analysis.

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4. Other Notable Segments

Financial Secrecy in Relationships

(08:25)

• Teaser for “This Is Uncomfortable” podcast: Maria previews an episode exploring financial secrets in relationships, featuring:
  • A divorce lawyer describing a client who spent $250,000/year at strip clubs.
    • “They had a forensic account, went through the numbers, and they calculated that he spent $250,000 in a year on strip clubs.” – Nancy Marshall Genzer (08:37)
  • Discussion on trust and power dynamics related to finances:
    • “I find that, like, a lot of dudes typically are like, I know how to spend the money the right way. I should be the one that has all the control over it. And you, with your girl brain, don't understand.” – David Brancaccio (08:52)

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Notable Quotes & Timestamps

• On the Endangerment Finding:

  • “It’s the foundation of the Environmental Protection Agency’s climate rules, which limit emissions of greenhouse gases from vehicles and power plants.” – Nancy Marshall Genzer (01:19)

• On Why State Tax Codes Don’t Always Match Federal Changes:

  • “If we were going to provide that relief, couldn’t we do it better on our own?” – Jared Walczak (06:43)

• On the Financial Policy Rollback:

  • “The repeal of the finding will allow more climate pollution leading to deadly and costly extreme weather.” – Environmental Defense Fund, paraphrased by Nancy Marshall Genzer (01:59)

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Timestamps for Major Segments

• EPA Rollback Announcement & Analysis: 00:46 – 02:15
• US-Canada Bridge Dispute: 02:15 – 03:14
• State/Federal Tax Changes Explained: 04:29 – 07:37
• States with No/Limited Income Taxes: 07:37 – 08:25
• Financial Secrecy Segment Preview: 08:25 – 09:04

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Tone and Language

The episode maintains an informative and analytical tone, with occasional wry humor (especially in the tax discussion). Interviewees and the BBC’s contributor provide clarity on both technical details and broader policy impacts.

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For those who missed this episode:
You’ll come away with a clear understanding of the EPA’s major climate policy rollback, how evolving tax laws may—or may not—affect your wallet depending on your state, and get a global context on US-Canada relations, plus a teaser for further exploration of personal finance and trust.

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Transcript

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[Maria]

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[David Brancaccio]

As the feds overhaul what we pay in taxes. Is your state along for the ride? I'm David Brancaccio in Los Angeles. First, the news agency Reuters says the Environmental Protection Agency under President Trump will course on a major scientific finding that had been at the core of its regulation of gases linked to climate change. Reports suggest the final rule on the rollback will come this week. Marketplace's Nancy Marshall Genzer has more.

[Nancy Marshall Genzer]

This scientific determination the Trump administration is expected to revoke is called the endangerment finding. It dates back to the Obama administration and it says that greenhouse gases are a threat to public health. It's the foundation of the Environmental Protection Agency's climate rules, which limit emissions of greenhouse g house gases from vehicles and power plants. The Trump administration's plan to kill the endangerment finding with a final rule this week was first reported by the Wall Street Journal. The Journal says the final rule would wipe away reporting, measuring and compliance requirements for greenhouse gas emissions of vehicles. The paper says it wouldn't affect the regulations and emissions from power plants for now. The rollback of the endangerment finding is expected to be challenged by environmental groups in court, and it could encourage states to write new rules on em. The Environmental Defense Fund says the repeal of the finding will allow more climate pollution leading to deadly and costly extreme weather. I'm Nancy Marshall Genser for Marketplace.

[David Brancaccio]

President Trump has threatened to block the opening of a new multibillion dollar bridge linking Canada and the U.S. the BBC's Gabrielle Sungolate has more.

[Gabrielle Sungolate]

In a lengthy social media post, Mr. Trump accused Canada of taking advantage of America. The bridge, which will connect Ontario and Michigan, has been entirely funded by the Canadian government. But Mr. Trump said he wouldn't allow it to open until, in his words, the US had been fully compensated for everything Washington had given to Canada. It isn't clear what that means. The president criticized a range of Canadian trading practices, as well as Prime Minister Mark Carney's recent trip to Beijing. Mr. Trump again warned him against finalizing a trade deal with China.

[Nancy Marshall Genzer]

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[David Brancaccio]

In the taxonomy of taxes. Let's classify this year's tax filing season as a learning experience. This given the treasure chest or Pandora's box of changes triggered when Congress passed and the president signed the huge spending and tax law last summer through April 15th. We'll learn together here on the Marketplace Morning Report today how some states follow along with the federal changes. But some states do not. Today's guide is Jared Walzack, senior fellow at the Tax Foundation. Good morning, Good morning.

[Jared Walczyk]

Thanks for having me.

[David Brancaccio]

Well, it's like high school all over again, right? Conformity or non conformity depends on the state you live in, right?

[Jared Walczyk]

It really does. Most states conform in some way to the federal tax code, but they differ in a lot of details. Like on things like the standard deduction, there are a lot of points of divergence.

[David Brancaccio]

All right, so you're still going to get whatever the federal tax changes have presented to you or wrought. The question is, oh boy, I'm also going to save a ton on my state taxes. It just kind of depends where you're living.

[Jared Walczyk]

Most states begin with the federal tax code in defining their tax base, but some of them use a previous year version of the Internal Revenue Code. So they're just out of date. Others have a current version, but then it matters what they conform to. So most states are not automatically in line to bring in the new deductions for tips, overtime, an auto loan interest or the senior bonus. And that's because of where they're drawn to in the tax code. They're just not in a section that most states bring in.

[David Brancaccio]

Right. And it's not that necessarily. States are just slow or bureaucratic or laggards. If states enact some of these tax changes, the state coffers could suffer. And there are, you know, elected officials concerned about that.

[Jared Walczyk]

Absolutely. And these provisions are controversial. Obviously they're a benefit for some people, but they're somewhat arbitrary. Think about the TIPS deduction. Most of that benefit does flow to people in the bottom half of the income distribution. So it's progressive in that way. But very few low income people are tipped workers. If you wanted to provide low income relief, why would you only apply it to maybe 4% of low income households? So for a lot of states, they ask, is this worth it? If we were going to provide that relief, couldn't we do it better on our own? And many aren't going to decide to affirmatively adopt what the federal government adopted.

[David Brancaccio]

And if you're listening, in a conforming state, among them Colorado, Idaho, Iowa and Montana, this is all pretty academic because the state tax code is quite aligned with the feds.

[Jared Walczyk]

That's absolutely right. Essentially those states and a few others begin their own income tax calculations with federal taxable income. Most states begin with adjusted gross income. And the way that the Reconciliation act, the HR1 legislation was designed. These deductions we're talking about, they sit in between AGI and federal taxable income. So if a state begins itself own income tax return with federal taxable income, these are in unless they change their law.

[David Brancaccio]

Jared Walczyk is senior fellow at the Tax Foundation. Thanks for helping us with this.

[Jared Walczyk]

Well, thank you for having me.

[David Brancaccio]

AGI adjusted gross income. Now, eight states have no income tax. If you live there, you know, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming. Washington state does tax capital gains of higher earners when you also factor in property tax, sales and excise taxes. The lowest tax states are Alaska, New Hampshire, Wyoming and Tennessee. Florida sometimes makes it into the low 5 for tax burden, depending on the analysis. Our producers are Emma Condon, Demar Fagan, Ashley Rodriguez, Ariana Rosas and Erica Soderstrom. Our senior producer is Alex Schroeder. Our supervising senior producer is Meredith Garretson. Morby, you're listening to the Marketplace Morning Report from apm, American Public Media.

[Maria]

Have you ever kept a financial secret from a partner? I'm Maria. And this week on this is Uncomfortable. I sit down with a divorce lawyer who shares some pretty extreme cases of financial secrecy.

[Nancy Marshall Genzer]

They had a forensic account, went through the numbers, and they calculated that he spent $250,000 in a year on strip clubs.

[Maria]

And I also chat with a couple's counselor about how financial issues in a relationship are often really about trust and power.

[David Brancaccio]

I find that, like, a lot of dudes typically are like, I know how to spend the money the right way. I should be the one that has all the control over it. And you, with your girl brain, don't understand.

[Maria]

Listen to this Is Uncomfortable on your favorite podcast.

[David Brancaccio]

Applause.