Caterpillar and Komatsu are facing a collective financial loss of $5.8 million following recent funding reductions directed at Democratic states, as reported by congressional Democrats.
After the government shutdown, the Department of Energy under the Trump administration slashed $8 billion in climate project funds across 16 states, all of which had supported former Vice President Kamala Harris in the 2024 presidential election.
This includes Illinois.
The 17th Congressional District of Illinois, encompassing Peoria, Bloomington, and Normal, is projected to lose more than $54 million in federal support, stated U.S. Rep. Eric Sorensen, a Democrat.
“This isn’t an effort to save taxpayer money. The funds were pre-approved. This is purely political, and it’s our families who will suffer,” he remarked.
These grants were issued by the DOE’s Office of Energy Efficiency and Renewable Energy, which allocates funding to projects aimed at cutting greenhouse gas emissions.
Caterpillar will lose $3.2 million due to the federal grant cuts, according to Appropriations Committee Democrats.
That grant helped fund Caterpillar research on hydrogen engine technology and whether it could outperform diesel-based engines.
As reported by USAspending, the grant was initially awarded on October 1, 2023. Since that time, the Peoria-based firm has received just $360,000 of the $3.2 million initially pledged by the federal government.
While the website doesn’t report that the program has been cancelled, the website said new information could be delayed due to a “lapse in funding.”
According to that same site, Komatsu’s cancelled grant was developing hydrogen-based technology for mining.
The company would lose $2.5 million in federal funds from the cancellation of this grant. However, according to USAspending, the grant ended in May 2025, and the company did not receive any money from the federal government.
U.S. Rep. Darin LaHood, Caterpillar and Komatsu did not immediately respond to requests for a comment.
