Trump Administration Cancels $7.6 Billion in Clean Energy Grants as Election Fallout Continues
WASHINGTON (AP) — The Trump administration is canceling $7.6 billion in grants that supported hundreds of clean energy projects in 16 states, all of whom backed Democratic candidate Kamala Harris in the previous presidential election.
The budget cuts were announced via a social media post from Russell Vought, the White House budget director, who claimed, “Nearly $8 billion in Green New Scam funding to fuel the Left’s climate agenda is being cancelled.”
This decision coincides with President Donald Trump’s threats of more cuts and job losses as tensions escalate with Congressional Democrats amid ongoing disputes over a federal government shutdown.
The slashes will likely impact impactful areas including battery plants, hydrogen technology initiatives, upgrades to the electric grid, and carbon-capture projects, according to the Natural Resources Defense Council.
In a statement, the Energy Department revealed that 223 projects were canceled after a review concluded they did not adequately serve national energy requirements or were economically untenable. Specific details regarding which projects faced cuts were not provided, but funding sources included the Office of Clean Energy Demonstrations and Office of Energy Efficiency and Renewable Energy.
Among the significant cuts is $1.2 billion earmarked for California’s hydrogen hub, which aims to expedite hydrogen technology and production. Governor Gavin Newsom's office has indicated that private-sector investments of $10 billion into the hydrogen hub are now jeopardized, threatening the loss of over 200,000 jobs.
“Clean hydrogen deserves to be part of California’s energy future — creating hundreds of thousands of new jobs and saving billions in health costs,” Newsom stated.
California Democratic Senator Alex Padilla condemned the project cancellations as “vindictive, shortsighted and proof this administration is not serious about American energy dominance.”
The DOE reported reviewing billions of dollars in grants awarded by the Biden administration after Trump's election win. The reviewed awards included more than $3.1 billion canceled between Election Day and Inauguration Day.
The cuts targeted numerous projects in California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Vermont, and Washington state.
Democrats and environmental organizations have widely criticized these decisions, asserting that they will escalate energy costs and obstruct innovative technologies vital for meeting growing energy demands.
