Administration Scraps $7B in Clean Energy Projects

The Trump administration has canceled $7.56 billion in funding for 223 clean energy and climate technology projects, many of which are based in states led by Democratic governors. The Department of Energy announced the move on Thursday, explaining that the projects did not meet national energy needs or provide a sufficient return on taxpayer investment, according to the Washington Post.

Russell Vought, Director of the Office of Management and Budget, wrote on X that the funding had been nothing more than “Green New Scam funding to fuel the Left’s climate agenda.” The cuts affect a wide range of programs, including up to $1.2 billion for California’s hydrogen hub initiative, designed to advance hydrogen technology and production. Gov. Gavin Newsom warned that the decision threatens more than 200,000 jobs despite $10 billion in private investment already committed. One project slated for cancellation involved installing battery backup systems in a children’s hospital.

The Department of Energy also canceled awards from its Office of Fossil Energy, which supports the production of fossil fuels and critical minerals, NPR reports. “President Trump promised to protect taxpayer dollars and expand America’s supply of affordable, reliable, and secure energy,” said Energy Secretary Chris Wright. “Today’s cancellations deliver on that commitment.”

Democratic lawmakers pushed back, claiming the move was politically motivated during the government shutdown. The Post reported that the cancellations affect projects in 17 Democratic-led states and 7 Republican-led states. “The Trump Administration is playing politics with our electric grid by canceling critical projects in Democratic states that strengthen reliability, provide much-needed power, and reduce costs,” said Zealan Hoover, a senior adviser to the EPA under Joe Biden.

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