The Trump administration‘s plan to cancel nearly $8 billion in energy funding in more than a dozen Democratic-led states is not only hitting green energy projects, but also upgrades to the grid that advocates say would have lowered electricity costs and the risk of blackouts.
White House Office of Management and Budget Director Russell Vought said Wednesday afternoon that the administration would terminate $7.56 billion worth of financial grants funding the “green new scam” and the “Left’s climate agenda” in 16 states, all of which have Democratic governors or senators.
The Department of Energy later confirmed that this will include approximately 321 financial awards supporting 223 projects, which the Department of Energy issued under the Biden administration.
Energy Secretary Chris Wright later said that after a “thorough, individualized financial review,” the agency determined that the projects did not adequately advance domestic energy needs, were not economically viable, and would not provide a positive return on investment for taxpayers.
“President Trump promised to protect taxpayer dollars and expand America’s supply of affordable, reliable, and secure energy,” Wright said in a statement. “Today’s cancellations deliver on that commitment. Rest assured, the Energy Department will continue reviewing awards to ensure that every dollar works for the American people.”
Wright also said many of the financial awards were rushed by the Biden administration, noting that 26% of the grants terminated were approved between Election Day and Inauguration Day.
All of the projects affected by grant terminations are located in blue-leaning states.
The states are California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Vermont, and Washington.
Democrats said the move is further evidence of President Donald Trump targeting political opponents, adding further pressure in the government shutdown fight in Congress.
Some are also accusing the administration of accelerating its efforts to stymie climate change-related policies and projects.
Most of the grant cancellations align directly with actions taken by the Trump administration to reduce federal support for renewable and clean energy projects.
This includes $1.2 billion in funding for the Alliance for Renewable Clean Hydrogen Energy Systems, California’s hydrogen hub. A hydrogen hub is a network of infrastructure related to the production, transportation, storage, and use of clean hydrogen energy in a specific region. The 2021 bipartisan infrastructure law includes billions in funding for regional hubs in a bid to facilitate the creation of a network for clean hydrogen and make it a viable fuel.
The Energy Department is also moving to claw back a billion dollars in funding for the Pacific Northwest Hydrogen Hub, which would cover Washington, Oregon, and Montana.
The administration has not publicly released a list of the affected projects, but a list of grants thought to be terminated, circulated among lobbyists and environmental groups on Wednesday, shows that funds for several wind, solar, emissions reduction, carbon capture, and electric vehicle-related projects are set to be cut.
The projects affected include a $1.25 billion loan for California-based EVgo to expand public access to fast charging infrastructure for electric vehicles nationwide.
The list also includes projects more geared toward boosting grid efficiency and stability.
For example, it lists Liberty Utilities’ subsidiary, CalPeco Electric, as one of the projects losing its funding. In 2023, Liberty Utilities announced that it was slated to receive up to $13 million to strengthen the local grid in California against wildfires and extreme weather risks.
Also included on the list is a $464 million grant awarded to Minnesota, which was intended to be used for building five high-voltage transmission lines across six states — five of which are classified as reliability “red” states. In 2023, Minnesota Commerce Commissioner Grace Arnold said the funds would help the state expand the electric grid and reduce costs for ratepayers.
The list does not include any financial figures; however, all those listed were made publicly available at the time the awards were announced.
Democrats and environmental groups have slammed the administration for its decision to cancel these funds, claiming it will backfire and increase electricity costs for American taxpayers, who are already feeling the burden of higher energy bills.
“This goes beyond targeting blue states. It’s taking a wrecking ball to working families’ lives: putting construction workers out of a job and raising families’ electric bills for political gain,” Senate Minority Leader Chuck Schumer (D-NY) said, calling it “outrageous and counterproductive to pull the rug out from local projects, workers, & businesses that grow our local economies, spearhead American innovation, and lower costs.”
TRUMP SLASHES FUNDING FOR BLUE STATE PROJECTS AS SHUTDOWN CLASH ESCALATES
“By canceling more renewable energy projects, Donald Trump is directly raising energy bills for millions of Americans. These projects are stable, well-paying jobs, and crucial cost-savings for families,” Sierra Club Climate Policy Director Patrick Drupp echoed in a statement.
Jackie Wong, senior vice president for climate and energy at the Natural Resources Defense Council, also said, “Slashing this money will mean lost factory jobs and higher energy prices for American consumers. This is yet another blow by the Trump administration against innovative technology, jobs, and the clean energy needed to meet skyrocketing demand. This is the exact opposite of what the American economy needs right now.”
