Energy Department Cancels $7.56B in Clean-Energy Funding in Blue States

The Department of Energy has canceled $7.56 billion in funding, eliminating over 200 clean-energy projects it says are not economically viable or aligned with US energy needs.

The Details: The department said Wednesday it is terminating 321 awards supporting 223 projects in 16 states. The projects include hydrogen hubs, grid modernization, battery storage, electric vehicles, and carbon capture, and more than $1 billion each for hydrogen projects in California and the Pacific Northwest. The cancellation affects mostly blue states, including California (79 projects), New York (41), Colorado (34), Illinois (33), Massachusetts (31), Oregon (19), Connecticut (12), Maryland (12), Minnesota (12) and Washington (11). White House Budget Director Russell Vought said the move was ending support for the “Left’s climate agenda.” 

For Context: The initiatives were funded through the 2021 Infrastructure Investment and Jobs Act and the 2022 Inflation Reduction Act signed by former President Biden. President Trump has criticized these as part of what he calls the “green new scam.”

How the Media Covered It: NPR (Lean Left bias) and Reason (Center) highlighted Democrat criticism that the cuts were to punish them during the government shutdown. NPR said the cancellations come as “electricity demand is expected to rise significantly for the first time in decades.” Reason wrote the Trump administration was trying to “capitalize” on the shutdown. It said the administration’s intention to rescind federal funds “would be a good idea” except the administration “seems to prefer dinging members of the opposing political tribe rather than effecting any sort of across-the-board changes.” Washington Examiner (Lean Right) quoted Energy Secretary Chris Wright who said 26% of the grants terminated were approved by Biden between Election Day and Inauguration Day. It also included criticism from energy advocates saying the cancellations hit upgrades that would have lowered electricity costs and the risk of blackouts.

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