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Energy Department Watchdog Opens Audit Into $7.6 Billion Clean-Energy Grant Cancellations

The review follows Democratic allegations of unlawful, partisan targeting of awards in 16 states that backed Kamala Harris in 2024.

Overview

  • Assistant Inspector General Sarah B. Nelson told lawmakers the audit will assess whether the cancellations complied with established criteria, laws and Department of Energy policies.
  • The department in October terminated 321 awards spanning 223 projects after concluding they were not economically viable and did not advance national energy needs.
  • California saw 79 cancellations totaling about $2.1 billion, including $1.2 billion expected for the ARCHES hydrogen hub.
  • The cuts aligned with a list posted by White House budget director Russell Vought naming 16 affected states, all of which supported Harris in 2024.
  • Democratic lawmakers requested the probe and warned of risks to grid upgrades and jobs, while the department did not immediately comment on the audit.