The US Department of Energy has cancelled more than 300 funding awards worth nearly $8 billion for projects in 16 states, halting initiatives aimed at cutting emissions, strengthening power grids and supporting clean manufacturing.
The cancellations, announced on the first day of the federal government shutdown, affect over 200 projects and could result in the loss of tens of thousands of jobs, according to critics. The rescinded awards were spread across hydrogen hubs, carbon capture, low-carbon cement and grid resilience programmes.
Projects hit include $1.2 billion for California’s ARCHES hydrogen hub, $1.1 billion in Washington state energy projects, more than $500 million in Colorado grants, and $135 million for ten projects in New Mexico. Officials in affected states condemned the move as politically motivated, with Washington Governor Bob Ferguson calling it “outrageous” and New Mexico Senator Martin Heinrich describing the cuts as “disrespectful and un-American.”
Energy Secretary Chris Wright defended the decision, saying many awards were rushed through in the final months of the Biden administration without adequate documentation. “These cancellations deliver on President Trump’s commitment to protect taxpayer dollars and expand affordable, reliable energy,” he said.
Environmental advocates disputed the justification. Ian Wells of the Natural Resources Defense Council said the projects would have achieved significant reductions in greenhouse gases and pollution while creating domestic manufacturing jobs.
Democrats on the House Appropriations Committee said the cancellations would raise energy costs, weaken grid reliability and eliminate jobs, while warning the cuts undermined bipartisan legislation underpinning the funding.
