Overview
- Assistant Inspector General Sarah Nelson told lawmakers the audit will evaluate whether DOE followed established criteria when canceling financial assistance.
- In October, DOE said it terminated 321 awards across 223 projects after case-by-case reviews found they did not advance energy needs, lacked economic viability, and offered no positive return for taxpayers.
- The cuts cover 16 states listed by OMB Director Russell Vought, all of which supported Kamala Harris in 2024, drawing accusations of unlawful partisan targeting from California Democrats.
- California was hit hardest with 79 canceled grants totaling about $2.1 billion, plus $1.2 billion in expected funding tied to the ARCHES hydrogen hub.
- Lawmakers say many awards stem from the Bipartisan Infrastructure Law and dispute DOE’s authority to revoke them, while the administration describes the cancellations as necessary fiscal oversight.