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DOE Cancels $7.56 Billion in Clean-Energy Awards in 16 Democratic-Leaning States

The agency says a tightened review found the projects uneconomic with insufficient returns for taxpayers.

Overview

  • Energy officials terminated 321 awards supporting 223 projects across clean-energy, grid, manufacturing and research offices, without releasing a full project list.
  • OMB Director Russ Vought announced the plan publicly and listed affected states as CA, CO, CT, DE, HI, IL, MD, MA, MN, NH, NJ, NM, NY, OR, VT and WA, calling the funding a “Green New Scam.”
  • Circulating lists reviewed by multiple outlets indicate cuts hit California’s ARCHES hydrogen hub (up to $1.2 billion), the Pacific Northwest hydrogen hub, many direct air capture grants, grid upgrades and battery initiatives, though DOE has not confirmed specific projects.
  • Recipients have 30 days to appeal; Democrats and environmental groups call the move illegal and job-killing, and some lawmakers are discussing paths to restore funding through congressional negotiations.
  • DOE says 26% of the terminated awards were issued between Election Day and Inauguration Day, valued above $3.1 billion, and Reuters reports the cancellations are part of a broader $26 billion funding freeze during the shutdown.