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, primarily located in states with Democratic governors. The Department of Energy announced the decision on Thursday, stating that the projects failed to meet national energy needs or offer a sufficient return on taxpayer investment, the Washington Post reports. In a post on X, Office of Management and Budget Director Russell Vought called the appropriation—intended for purposes including upgrading the electricity grid and preventing natural gas leaks—"Green New Scam funding to fuel the Left's climate agenda."

The cuts include up to $1.2 billion for California's hydrogen hub, which is designed to accelerate hydrogen technology and production. Gov. Gavin Newsom said that the private sector has committed $10 billion for the project, per the AP, and that the cut threatens over 200,000 jobs. One project was to install battery systems in a children's hospital in the state. The Energy Department also canceled awards from its Office of Fossil Energy, which encourages production of fossil fuels and critical minerals, per NPR. "President Trump promised to protect taxpayer dollars and expand America's supply of affordable, reliable, and secure energy," Energy Secretary Chris Wright said. "Today's cancellations deliver on that commitment."

Democratic lawmakers countered that the cuts are an attempt to punish Democrats during the government shutdown. The cancellations apply to 17 states with Democratic governors and seven with Republican governors, per the Post. "The Trump Administration is playing politics with our electric grid by cancelling 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, in a statement.