- The Department of Energy (DOE) canceled $3.7 billion in taxpayer-funded grants for carbon capture and decarbonization projects, signaling a departure from Biden-era climate spending.
- DOE Secretary Chris Wright emphasized "immediate taxpayer savings" and "economic viability," prioritizing market-driven solutions over government-backed green initiatives.
- High-profile canceled projects include: $540 million for Calpine Corp.'s carbon capture plants and major industrial decarbonization investments by Ørsted, Exxon Mobil and PPL Corp.
- While the DOE slashed funding, the Environmental Protection Agency (EPA) simultaneously disbursed $4.3 billion in new climate grants, highlighting conflicting federal approaches.
- This decision reflects a growing skepticism toward centralized climate spending, favoring fiscal responsibility over globalist-driven decarbonization agendas.
The U.S. Department of Energy (DOE) is reviewing billions of dollars in previously awarded clean-energy grants, signaling a major shift in federal climate investment priorities.
According to documents obtained by Reuters, the Trump administration is considering rescinding funding for electric vehicle (EV) manufacturing, carbon capture projects and other green initiatives – many of which were approved under former President Joe Biden. The proposed cuts, which could exceed $12 billion, follow last week's cancellation of $7.56 billion in clean-energy financing.
The budget cuts nevertheless raise concerns about political motivations and the future of U.S. climate policy. Among the high-profile awards at risk include:
- $500 million to General Motors for converting its Lansing, Michigan, plant to EV production.
- $335 million for Stellantis to repurpose its shuttered Belvidere, Illinois, factory for electric trucks.
- $250 million for Stellantis to transition its Indiana Transmission Plant to EV components.
- $208 million for Volvo Group to upgrade EV production facilities in Maryland, Virginia and Pennsylvania.
Smaller awards, including $89 million for Harley-Davidson's EV motorcycle expansion and $80 million for Blue Bird's electric school bus conversion, are also under scrutiny. Two major direct air capture (DAC) hubs, one involving Occidental Petroleum, face potential cancellation – a move that could strain relations with fossil fuel companies that support carbon capture for enhanced oil recovery.
A pattern of climate funding rollbacks
This latest review builds on earlier DOE actions, including the May cancellation of $3.7 billion in carbon capture and industrial decarbonization projects. Among those terminated were:
- $331 million for Exxon's Baytown refinery carbon-reduction project.
- $500 million for Heidelberg Materials in Louisiana.
- $375 million for Eastman Chemical in Texas.
White House Office of Management and Budget Director Russ Vought confirmed last week that nearly $8 billion in climate-related funding would be terminated across 16 Democratic-led states, including California and New York. Critics argue the cuts disproportionately target blue states, suggesting political motives rather than fiscal prudence.
The DOE insists its decisions follow a May 2025 policy, "Ensuring Responsibility for Financial Assistance," which mandates stricter economic viability reviews. According to Brighteon.AI's Enoch, this is because many projects fail to deliver sufficient taxpayer returns or align with national energy priorities.
But environmental advocates see a broader agenda. "This is yet another blow by the Trump administration against innovative technology, jobs and the clean energy needed to meet skyrocketing demand," said Jackie Wong of the Natural Resources Defense Council.
Meanwhile, the fossil fuel industry faces mixed signals. While carbon capture projects are on the chopping block, some oil companies rely on DAC technology for enhanced oil recovery. The administration's stance may inadvertently undermine its own energy allies.
As the DOE continues its review, the looming cuts underscore a fundamental clash between climate investment and fiscal conservatism. Whether driven by economic reassessment or political strategy, the Trump administration's rollback of Biden-era clean energy funding marks a pivotal moment in U.S. energy policy—one that could reshape the nation's climate trajectory for years to come.
Watch West Virginia Gov. Patrick Morrisey calling the Green New Deal a "scam" in this clip.
This video is from the NewsClips channel on Brighteon.com.
Sources include:
Please contact us for more information.