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The Trump administration is cutting billions of dollars for green energy projects, particularly in states that did not vote for President Trump.
The Energy Department announced late Wednesday that it was cutting awards that funded a total of 223 projects, axing about $7.56 billion in spending.
Before the forthcoming announcement, Russell Vought, Director of the White House Office of Management and Budget, shared on social media that funding reductions are forthcoming for projects in states such as California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Vermont, and Washington.
Vought, in his post, categorized the projects as “Green New Scam funding to fuel the Left’s climate agenda.”
All of those states went for then-Vice President Kamala Harris in last year’s election, and most of them have Democratic governors.
Despite this, information released by congressional Democrats highlights that some of the rescinded funds were intended for projects in states that did not support Harris, namely Tennessee, South Carolina, North Dakota, Iowa, and Florida.
The withdrawn funding was designated for a diverse group of beneficiaries. Notably, among these awards is up to $1.2 billion dedicated to advancing hydrogen energy in California.
This allocation was part of several regional “hubs” financed by the Bipartisan Infrastructure Law, aimed at promoting energy sourced from hydrogen atoms.
California Governor Gavin Newsom, a potential contender for the 2028 presidential race, remarked in a statement, “In Trump’s America, energy policy is dictated to the highest bidder, ignoring both economic sense and logic. Clean hydrogen should play a pivotal role in California’s energy plans — bringing forth numerous new jobs and cutting billions in health-related expenses.” His office’s press release warned that this decision endangers 200,000 jobs.
Additionally, a significant $1 billion designated for hydrogen power in the Pacific Northwest was scrapped, though it seems that hydrogen hubs in states like West Virginia and Pennsylvania remain unaffected.
The cancellations come amid a government shutdown in which partisan tensions are particularly high. The Trump administration has been seeking to pressure Democrats to pass a bill to fund the government, including by threatening to fire federal workers. Meanwhile, Democrats are insisting on passing legislation aimed at bringing down healthcare costs along with any funding bill.
Among the companies losing funding are utilities such as Commonwealth Edison, Xcel Energy, Exelon, General Electric and Pacific Gas and Electric. Also losing out are companies that produce solar energy, electric vehicles and hydrogen power — among others.
In addition, funding is being canceled for the Gas Technology Institute, which has said it received significant government funding with the aim of reducing methane emissions from oil and gas production.
Sen. Martin Heinrich (N.M.), the top Democrat on the Senate’s Energy and Natural Resources Committee, called the Trump moves “nakedly political, unhinged, and unlawful” in a written statement.
“These are projects that Congress already approved and funded — projects that create jobs, lower electricity costs, and move our country forward. Instead of working to help our families and communities, the Trump Administration is tearing these projects down, driving up energy bills for families, and putting hardworking people in New Mexico and across the country out of work,” Heinrich said.
The Energy Department said in its press release that the 321 awards which would have gone to the 223 projects were being canceled after a “thorough, individualized financial review.”
Energy Secretary Chris Wright told Congress in May that previously-funded projects were being reviewed on a variety of criteria, including whether they align with the Trump administration’s agenda.
Now, Wright said in a written statement that the cancellations came as part of an effort to “protect taxpayer dollars.”
The department said that 26 percent of the awards it was cancelling were issued by the Biden administration between the election and President Trump’s inauguration – and that these awards alone were worth more than $3.1 billion.
It’s not clear what the administration will do with the funds it is clawing back, if anything. The department did not answer The Hill’s question about what would happen to the money.