The US Department of Energy on Friday announced the cancellation of 24 clean energy projects totaling over $3.7 billion in federal financial assistance, citing economic and national security concerns. The move is part of a new federal energy direction under the Trump Administration and targets decisions made largely during the last weeks of President Joe Biden’s term.
Energy Secretary Chris Wright said in a statement that the grants, issued by the Office of Clean Energy Demonstrations, failed to meet standards for economic viability, energy security, and return on investment for taxpayers.
“While the previous administration failed to conduct a thorough financial review before signing away billions of taxpayer dollars, the Trump administration is doing our due diligence to ensure we are utilizing taxpayer dollars to strengthen our national security, bolster affordable, reliable energy sources and advance projects that generate the highest possible return on investment,” Wright said.
Nearly 70% of the 24 canceled awards were signed between Election Day 2024 and President Trump’s inauguration on Jan. 20, 2025. Many were linked to carbon capture and sequestration or industrial decarbonization efforts, including projects in the cement, food, and energy sectors. No grants to Alaska were made during that period. Only $99 million had been disbursed when the decision was made.
High-profile recipients whose funding was withdrawn include Exxon Mobil’s hydrogen project in Baytown, Texas, and a Kraft Heinz decarbonization initiative.
In a press release, the DOE stated that the decision followed an “individualized financial review” guided by a Secretarial Memorandum issued earlier this month. That policy document, “Ensuring Responsibility for Financial Assistance,” outlined a case-by-case review process for DOE grants to “identify waste of taxpayer dollars, protect America’s national security, and advance President Trump’s commitment to unleash affordable, reliable and secure energy.”
Many of the rescinded grants were part of climate initiatives backed by the 2021 Infrastructure Investment and Jobs Act and the 2022 Inflation Reduction Act. Earlier this year, over $130 million in grants allocated to clean energy projects in rural Alaska were frozen following an executive order from President Donald Trump.
