The U.S. Department of Energy on Thursday announced it has terminated $7.56 billion in financial awards to 223 clean energy projects — all in states that voted for former Vice President Kamala Harris in the 2024 election.
“Following a thorough, individualized financial review, DOE determined that these projects did not adequately advance the nation’s energy needs, were not economically viable, and would not provide a positive return on investment of taxpayer dollars,” the agency said in a statement.
A list of impacted projects was not immediately available. DOE said award recipients have 30 days to appeal a termination decision and “some of the projects included in this announcement have already begun that process.”
In total, DOE said it terminated 321 financial awards issued by the Offices of Clean Energy Demonstrations, Energy Efficiency and Renewable Energy, Grid Deployment, Manufacturing and Energy Supply Chains, Advanced Research Projects Agency-Energy and Fossil Energy.
Energy Secretary Chris Wright said DOE has been working to review “billions of dollars in financial awards, many rushed through in the final months of the Biden administration with inadequate documentation by any reasonable business standard.”
Of the financial awards terminated, DOE said 26% were awarded between Election Day and Inauguration Day. “Those awards alone were valued at over $3.1 billion,” the agency said.
Russ Vought, director of the Office of Management and Budget, said in a post on X that the terminated projects were in California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Vermont and Washington.
“Nearly $8 billion in Green New Scam funding to fuel the Left's climate agenda is being cancelled,” Vought wrote.
Democratic lawmakers and consumer advocates said DOE’s funding cancellation is illegal, and an example of a presidential administration executing a political vendetta that will hurt all Americans.
“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,” Sen. Patty Murray, D-Wash., said in a statement. “This is a blatant attempt to punish the political opposition.”
“Our democracy is badly broken when a president can illegally suspend projects for Blue states in order to punish his political enemies,” Sen. Adam Schiff, D-Calif., said in a social media post.
“Terminating critical energy projects in Democratic states weaponizes policy for political revenge and will only drive energy bills higher, increase unemployment, and eliminate jobs. It is reckless and betrays both common sense and public trust,” Rep. Rosa DeLauro, D-Conn., said in a statement.
Cutting the projects’ funding “will mean lost factory jobs and higher energy prices for American consumers,” Jackie Wong, senior vice president for climate and energy at the Natural Resources Defense Council, said in a statement. “Ending support for these projects will stall American innovation and competitiveness, raising costs for consumers, and further cementing our reliance on dirty fossil fuels.”
Canceled funding awards reportedly include hydrogen projects in California and the Pacific Northwest. NRDC said the cancellations also include funding for battery plants, electric grid upgrades, clean vehicle manufacturing and industrial demonstrations projects.
California Gov. Gavin Newsom issued a statement confirming DOE canceled up to $1.2 billion for the Alliance for Renewable Clean Hydrogen Energy Systems, the state’s planned hydrogen hub.
“The cancellation of ARCHES is vindictive, shortsighted, and proof this Administration is not serious about American energy dominance,” said Sen. Alex Padilla, D-Calif.
Ultimately, U.S. consumers will pay the price, advocates said.
By canceling more renewable energy projects, Trump “is directly raising energy bills for millions of Americans,” Sierra Club Climate Policy Director Patrick Drupp said in a statement.
