US energy department cancels US$7.6bil in funding meant for projects

US energy department cancels US$7.6bil in funding meant for projects

The grants were issued by six offices responsible for clean energy, efficiency, grid deployment, advanced research, manufacturing and fossil fuels.

In a statement, the US department of energy said it would cancel 321 financial awards supporting 223 projects. (EPA Images pic)
WASHINGTON:
The US department of energy (DOE) said yesterday that it planned to cancel US$7.56 billion in financing for hundreds of energy projects that it said would not provide sufficient returns to taxpayers.

The department’s announcement came hours after White House budget director Russell Vought said in a post on X that the administration would terminate nearly US$8 billion in climate-related funding in 16 Democratic-led states, including California and New York.

The move was part of a broader, US$26 billion funding freeze that was unveiled yesterday as President Donald Trump followed through on a threat to use the federal government shutdown to target Democratic priorities.

In a statement issued late yesterday, the DOE said it would cancel 321 financial awards supporting 223 projects.

It did not list the projects, but said the grants had been issued by six agency offices responsible for clean energy, efficiency, grid deployment, advanced research, manufacturing and fossil fuels.

“President Trump promised to protect taxpayer dollars and expand America’s supply of affordable, reliable, and secure energy,” energy secretary Chris Wright said in a statement.

“Today’s cancellations deliver on that commitment. Rest assured, the energy department will continue reviewing awards to ensure that every dollar works for the American people,” Wright said.

Earlier, Bloomberg reported that the planned cancellations included funding for proposed hydrogen hubs in California and the Pacific Northwest.

California governor Gavin Newsom, a Democrat, criticised the administration for canceling its US$1.2 billion commitment to fund his state’s hydrogen hub.

“We’ll continue to pursue an all-of-the-above clean energy strategy that powers our future and cleans the air, no matter what DC tries to dictate,” Newsom said in a statement.

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