The U.S. Department of Energy announced Wednesday that it is canceling more than $7.5 billion in funding for hundreds of energy projects, saying the programs wouldn’t deliver enough value
for taxpayers.
The decision came shortly after White House budget director Russell Vought posted on X (formerly Twitter) that the administration would cut nearly $8 billion in climate-related funding earmarked for 16 Democratic-led states, including California and New York.
This is part of a broader $26 billion freeze on federal funding that President Donald Trump rolled out on Wednesday. The cuts are being framed as part of his effort to reshape spending priorities during the ongoing government shutdown.
In total, the Department of Energy said it will cancel 321 awards tied to 223 projects. The agency didn’t release a full list, but the cuts will affect programs across clean energy, energy efficiency, grid modernization, advanced research, manufacturing, and fossil fuel initiatives.
Energy Secretary Chris Wright defended the move, saying the administration is focused on protecting taxpayer dollars. “President Trump promised to safeguard taxpayer money while ensuring America has affordable, reliable, and secure energy. These cancellations are a step in that direction,” Wright said in a statement.
Bloomberg previously reported that some of the canceled funding included major hydrogen hub proposals in California and the Pacific Northwest. California Governor Gavin Newsom quickly criticized the move, blasting the loss of $1.2 billion in federal support for his state’s hydrogen hub.
“We’ll keep pushing forward with a clean energy strategy that strengthens our economy and clears our air — no matter what Washington tries to block,” Newsom said. Photo by JSquish, Wikimedia commons.
