The Trump administration is cutting $7.6 billion in grants that funded numerous clean energy projects across 16 states, all of which supported Democrat Kamala Harris in the last presidential election.
Announced via social media by White House budget director Russell Vought, the cuts include almost $8 billion referred to as “Green New Scam” funding intended to support what he described as a climate agenda for the Left.
The move comes as President Donald Trump threatens cuts and firings in his fight with congressional Democrats over the federal government shutdown.
These budget reductions are expected to impact various initiatives, including battery plants, hydrogen technology projects, upgrades to electric grids, and carbon-capture endeavors, according to the Natural Resources Defense Council, an environmental nonprofit.
The Energy Department released a statement on Thursday indicating the termination of 223 projects. They were found not effectively advancing national energy needs or lacking economic viability, following an in-depth review. Specifics of the affected projects were not disclosed, but funding had been sourced from sectors like the Office of Clean Energy Demonstrations and the Office of Energy Efficiency and Renewable Energy.
Among the halted projects is $1.2 billion allocated to California’s hydrogen hub, intended to enhance hydrogen technology and production. According to Gov. Gavin Newsom’s office, the private sector had pledged $10 billion towards this hub. The cessation of the Alliance for Renewable Clean Hydrogen Energy Systems jeopardizes over 200,000 jobs.
“Clean hydrogen should be integral to California’s energy future, promising the creation of hundreds of thousands of jobs and saving billions on health costs,” stated the Democratic governor.
California Democratic Sen. Alex Padilla called cancelation of the project “vindictive, shortsighted and proof this administration is not serious about American energy dominance.”
The DOE said it has reviewed billions of dollars awarded by the Biden administration after Trump won the presidential election last November. More than a quarter of the rescinded grants were awarded between Election Day and Inauguration Day, the department said. The awards totaled more than $3.1 billion.
“President Trump promised to protect taxpayer dollars and expand America’s supply of affordable, reliable, and secure energy. Today’s cancellations deliver on that commitment,” Energy Secretary Chris Wright said.
The Trump administration has broadly targeted climate programs and clean energy, and is proposing to roll back vehicle emission and other greenhouse gas rules it says can’t be justified. The Environmental Protection Agency has proposed overturning a 2009 finding that climate change threatens public health. Many climate scientists have criticized the EPA effort as biased and misleading.
Democrats and environmental organizations were quick to slam the latest cuts, saying they would raise energy costs.
“This is yet another blow by the Trump administration against innovative technology, jobs and the clean energy needed to meet skyrocketing demand,” said Jackie Wong, a senior vice president at NRDC.
Vought said the projects being cut are in California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Vermont and Washington state.
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