DOE Cancels $3.7 Billion in Clean Energy Grants, Undermining U.S. Climate Efforts

The Department of Energy has canceled nearly $3.7 billion in clean energy project grants, dealing a significant blow to efforts aimed at reducing greenhouse gas emissions in the U.S. under President Donald Trump’s administration. These grants, primarily awarded during former President Joe Biden’s tenure, focused on carbon capture and storage, cleaner cement, natural gas, and other initiatives.

Key cancellations include $500 million to Heidelberg Materials US, Inc., $375 million to Eastman Chemical Company, $95 million to Nevada Gold Mines, LLC, and $270 million to Sutter CCUS. Sublime Systems, which lost an $87 million grant, expressed surprise and disappointment.

Critics argue this move undermines U.S. competitiveness in the global market for cleaner industrial products and technologies. Conrad Schneider of the Clean Air Task Force stated, “Today’s action is bad for U.S. competitiveness in the global market and also directly contradictory to the administration’s stated goals of supporting energy production and environmental innovation.”

This decision follows the Energy Department’s earlier announcement to review 179 funded projects, totaling over $15 billion, awarded under the 2021 bipartisan infrastructure law. Energy Secretary Chris Wright cited responsible spending and alignment with national security and affordable energy goals as reasons for the cancellations.

The Trump administration has consistently targeted Biden-era environmental initiatives, rolling back regulations and redirecting funding towards oil and gas production. Steven Nadel of the American Council for an Energy-Efficient Economy called the move “shortsighted.”

Industry leaders have decried the cancellations, emphasizing their importance for domestic manufacturing and energy independence. Jessie Stolark of the Carbon Capture Coalition described the decision as a “major step backward” for carbon management technologies. Mike Williams of the Center for American Progress warned that canceling these projects would raise energy prices and sacrifice high-quality union jobs.

Evan Gillespie of Industrious Labs argued that the move dismantles the economy and the future of American manufacturing, leading to increased emissions and pollution.