Trump Administration Cuts $7.6 Billion in Clean Energy Grants to Democratic States

Fri Oct 10 2025 18:26:05 GMT+0300 (Eastern European Summer Time)

In a significant move, the Trump administration has canceled $7.6 billion in grants that funded clean energy projects in 16 states, drawing sharp reactions from Democratic leaders and environmental groups.

The Trump administration announced the cancellation of $7.6 billion in clean energy project grants across 16 states, mainly those that voted for Democrat Kamala Harris in the last presidential election. Budget Director Russell Vought branded the funding as part of the 'Green New Scam.' The decision affects numerous projects, including California's $1.2 billion hydrogen hub, which was projected to create 200,000 jobs. Critics accuse the administration of undermining efforts to combat climate change and raise energy costs.

WASHINGTON (RTW) — The Trump administration is canceling $7.6 billion in grants that supported hundreds of clean energy projects across 16 states, all of which leaned towards Democrat Kamala Harris in the previous presidential election.

The cuts were revealed in a statement by Russell Vought, the White House budget director, suggesting it was an effort against what he termed the 'Green New Scam' funding intended for the Left's climate agenda.

This decision comes amid ongoing tensions between President Donald Trump and congressional Democrats, especially related to the federal government shutdown.

The cancellations are projected to have significant ramifications on various technological advancements including battery plants, hydrogen technology, electric grid upgrades, and carbon capture initiatives, as noted by the Natural Resources Defense Council.

The Energy Department stated that 223 projects were terminated after determining they failed to sufficiently address the nation's energy needs or were economically impractical. Specific details on the affected projects were not disclosed, but the cuts encompass initiatives from several DOE offices.

Among the cuts is $1.2 billion meant for California’s hydrogen hub aimed at promoting hydrogen technology and production, which has garnered a $10 billion commitment from the private sector. California Governor Gavin Newsom's office expressed concern that this cancellation jeopardizes more than 200,000 jobs.

“Clean hydrogen deserves to be part of California’s energy future — creating hundreds of thousands of new jobs and saving billions in health costs,” Newsom stated.

California Democratic Senator Alex Padilla condemned the decision, calling it ‘vindictive’ and ‘shortsighted,’ claiming it exemplifies the administration's insincerity towards energy dominance.

The DOE indicated a review of the grants awarded during the Biden administration after Trump’s election highlighted that over a quarter of the rescinded funds were allocated between Election Day and Inauguration Day, totaling more than $3.1 billion.

Energy Secretary Chris Wright maintained that these cancellations are in line with Trump’s promise to protect taxpayer dollars and expand America's energy supply.

The Trump administration has shown a consistent effort to target environmental initiatives, proposing to rollback various emissions regulations while the Environmental Protection Agency has attempted to reverse previous findings about the health risks of climate change.

Democrats and environmental advocates criticized these latest cutbacks, warning that they will only lead to increased energy prices and reduced innovation.

“This is yet another blow by the Trump administration against innovative technology, jobs, and the clean energy needed to meet skyrocketing demand,” remarked Jackie Wong, a senior vice president at NRDC.

Vought mentioned that the cuts would impact projects in several states including California, Colorado, Illinois, and New York among others.

As the debate over clean energy pivots amidst political divides, the cancellation of these funds may reshuffle priorities in environmental policy and energy innovation in the coming months.