Trump administration cancels $7.6B in clean energy grants across Democratic-led states

Donald J. Trump, U.S.A President
Donald J. Trump, U.S.A President - History.com
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The Trump administration has announced the cancellation of $7.6 billion in grants supporting clean energy projects across 16 states, all of which voted for Democrat Kamala Harris in the previous year’s presidential election. The move is part of broader budget cuts as President Donald Trump and congressional Democrats remain at odds over a government shutdown.

According to a statement from the Department of Energy (DOE), 223 projects were terminated after a review found they did not sufficiently advance national energy needs or were not economically viable. The DOE did not specify which projects are affected but noted that funding was drawn from the Office of Clean Energy Demonstrations, Office of Energy Efficiency and Renewable Energy, and other bureaus.

Environmental groups, including the Natural Resources Defense Council (NRDC), said the cuts will impact battery plants, hydrogen technology initiatives, electric grid upgrades, and carbon-capture efforts.

White House budget director Russell Vought commented on social media that funds “to fuel the Left’s climate agenda is being cancelled.” He listed California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Vermont and Washington state as those affected.

Neither Vought nor DOE officials explained how these states were chosen for cuts. All 16 had both U.S. senators vote against a Republican short-term funding bill to keep the government open.

Among the rescinded grants are up to $1.2 billion for California’s hydrogen hub project—intended to boost hydrogen technology—and up to $1 billion for a Pacific Northwest hydrogen initiative. Projects in Texas and a three-state region covering West Virginia, Ohio and Pennsylvania were not cut.

In an interview with One America News taped Wednesday and previewed before its airing Thursday night, President Trump stated: “I’m allowed to cut things that never should have been approved in the first place and I will probably do that.”

Senator Patty Murray (D-Wash.) criticized the administration’s actions: “This administration has had plans in the works for months to cancel critical energy projects, and now they are illegally taking action to kill jobs and raise people’s energy bills,” she said. “This is a blatant attempt to punish the political opposition.”

California Governor Gavin Newsom noted that private sector commitments total $10 billion for California’s Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) project. He warned that more than 200,000 jobs could be at risk due to this decision.

Senator Alex Padilla (D-Calif.) described the cancellation as “vindictive” and “shortsighted,” arguing it shows a lack of seriousness about American energy leadership.

The California hydrogen project was one of seven selected under a $7 billion program initiated by the Biden administration to spur development of hydrogen fuel as part of efforts to address climate change.

The DOE said it reviewed billions awarded during Biden’s presidency after Trump won last November’s election. More than one-quarter of rescinded grants were awarded between Election Day and Inauguration Day.

Energy Secretary Chris Wright said: “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.”

Grant recipients have 30 days to appeal DOE decisions regarding terminations.

Last week saw an additional $13 billion in clean energy project funding rescinded by DOE; this money had been authorized by Congress in 2022 but remained unspent.

Jackie Wong of NRDC responded: “This is yet another blow by the Trump administration against innovative technology, jobs and the clean energy needed to meet skyrocketing demand.”



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