On Wednesday night, the Department of Energy announced it would revoke 321 grants totaling $7.56 billion, most of which were intended for clean energy initiatives.
The agency has not made public the list of impacted projects, nor had it shared one with TechCrunch at the time of writing. Reports from E&E News and Heatmap, which have obtained the list, indicate that the majority of the rescinded funding affected states that supported Kamala Harris in the previous presidential election, although some projects in “red” states that backed President Trump were also cut.
As a result, projects related to direct air capture and hydrogen hubs seem to have been eliminated. California Governor Gavin Newsom stated that the cancellations included $1.2 billion for the state’s hydrogen hub, known as the Alliance for Renewable Clean Hydrogen Energy Systems. E&E News also reported that similar hubs in Texas and Louisiana were among those affected.
At least 10 direct air capture (DAC) initiatives, amounting to $47.3 million, were terminated, though projects in Alaska, Kentucky, Louisiana, and North Dakota remain. The oil and gas sector has favored DAC projects, as the captured CO2 can be used to enhance output from underperforming oil wells.
Other states impacted by the cancellation of billions in contracts include Colorado, Connecticut, Delaware, Florida, Hawaii, Illinois, Iowa, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Tennessee, Vermont, and Washington.
Russell Vought, director of the Office of Management and Budget, confirmed in a tweet that the states with canceled projects had voted for Harris. He had hinted at the cancellations earlier in the day, seemingly to intensify partisan tensions during the shutdown, and remarked that “the Left’s climate agenda is being cancelled.”
All 16 states he mentioned supported Kamala Harris in the last presidential race, and many have Democratic leadership at the state level. Notably, Vought did not mention Trump-supporting states that were also affected.
The grants were initially awarded by offices such as Advanced Research Projects Agency-Energy, Clean Energy Demonstrations, Energy Efficiency and Renewable Energy, Fossil Energy, Grid Deployment, and Manufacturing and Energy Supply Chains.
The Department of Energy noted that 26% of the grants were issued between Election Day and the January Inauguration Day; the president’s authority continues until Inauguration Day, not just Election Day.
Recipients of the grants have a 30-day window to challenge the decision.
The Trump administration has openly aimed to hinder the shift away from fossil fuels. Just last week, the Department of Energy prohibited employees from using certain terms, such as “climate change” and “emissions.”
In May, the agency rescinded $3.7 billion in awards for clean energy and manufacturing. These cancellations affected a wide range of sectors, including metal production, cement manufacturing, power generation, and chemical facilities operated by major fossil fuel companies.
Due to the Trump administration’s sweeping cancellations, numerous recipients have taken legal action to retain their grants. The Environmental Protection Agency, which quickly revoked contracts worth $20 billion, has already faced lawsuits. Outcomes for plaintiffs have been mixed so far.
A federal district court described the EPA’s actions as “arbitrary and capricious,” but an appellate court sided with the agency, stating that the contract terminations were lawful and reflected “proper oversight and management.”
The Department of Energy has confirmed that several recipients have already filed appeals regarding the recent cancellations.
Update: Additional information about the affected states and programs has been added to the article and headline.
