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Energy Department Cancels $7.56 Billion in Clean-Energy Awards

The move is part of a broader $26 billion funding freeze tied to the shutdown, with recipients given 30 days to appeal.

Overview

  • DOE said it terminated 321 financial awards supporting 223 projects across offices focused on demonstrations, efficiency, grid deployment, manufacturing, ARPA‑E and fossil energy.
  • The agency cited poor economic returns and limited energy benefits, noting that 26% of the canceled awards were issued between Election Day and Inauguration Day.
  • OMB Director Russell Vought announced the action on X before DOE’s statement and listed 16 affected states, including California and New York.
  • Awardees have 30 days to appeal, some have already begun that process, and DOE has not released a project-by-project list.
  • California officials said a roughly $1.2 billion commitment for the state’s proposed hydrogen hub was scrapped, drawing criticism from Governor Gavin Newsom.