URGENT UPDATE: The Trump administration is poised to slash an additional $12 billion in funding for clean energy initiatives, intensifying its ongoing campaign against renewable energy. Just last week, the administration cancelled over $7.5 billion in clean energy projects, raising alarms about the future of carbon removal and electric vehicle (EV) programs across the United States.
New reports from Semafor reveal a targeted list of projects that could include $1.5 billion in EV funding, directly affecting major players like General Motors and Stellantis. This latest move not only threatens the progress of clean technology but also jeopardizes thousands of jobs tied to these initiatives.
The proposed cuts focus on significant grants that were previously approved under the Biden administration, including a $500 million award to General Motors to convert its Lansing Grand River Assembly Plant in Michigan for EV production. Other projects at risk include a $335 million grant to Stellantis for its Belvidere Assembly plant in Illinois to manufacture mid-size electric trucks and a $250 million grant for Stellantis to produce EV parts in Indiana.
Additionally, the Department of Energy (DOE) has indicated that the list may target critical funding for two federally-backed direct air capture hubs, which are vital for carbon dioxide extraction. This could impact $500 million in matching funds for Occidental Petroleum’s hub project in Texas, as well as another project in Louisiana.
The implications of these cuts are staggering. The potential total of DOE funding targeted for elimination could reach approximately $23 billion when combined with previous cuts, including a $3.7 billion reduction announced in May. Reports suggest that many of the projects identified in the recent cuts are concentrated in Democratic-leaning states, raising concerns about political motivations behind the decisions.
An energy lobbyist confirmed to E&E News that the cuts appear to be strategically aimed at “blue state projects,” with the latest list reportedly sent to the Office of Management and Budget in advance. If finalized, these additional cuts would disproportionately affect “red states and red districts,” highlighting the ongoing political divide over renewable energy policies.
As the situation develops, the DOE has stated through Press Secretary Ben Dietderich that “no determinations have been made other than what has been previously announced.” The Department continues to conduct a thorough review of financial awards made by the previous administration.
WHAT TO WATCH FOR: As this story unfolds, industry stakeholders and environmental advocates will be closely monitoring the Biden administration’s response, as well as the potential impact on jobs and clean energy innovation. This situation is evolving rapidly, and its ramifications could redefine the energy landscape in America.
Stay tuned for more updates as this urgent situation develops, and understand how these cuts could reshape the future of clean energy in the United States.
