The U.S. Department of Energy has announced plans to cancel $7.56 billion in funding for hundreds of energy projects it claims would not deliver sufficient returns for taxpayers. The move marks another major rollback of environmental and climate policies under President Donald Trump, continuing his administration’s broader deregulatory agenda.
In a statement released late Wednesday, the department said it would terminate 321 grants supporting 223 projects. While it did not specify which projects are affected, it noted that the grants had been distributed across six departmental offices responsible for clean energy, efficiency, grid deployment, advanced research, manufacturing, and fossil fuels.
Energy Secretary Chris Wright defended the cuts, saying:
“President Trump promised to protect taxpayer dollars and expand America’s energy supply in an affordable, reliable, and secure way. Today’s cancellations fulfill that commitment.”
The announcement came just hours after Russell Vought, Director of the Office of Management and Budget, confirmed that the administration would eliminate nearly $8 billion in climate-related funding across 16 Democrat-led states, including California and New York.
The cuts are part of a broader $26 billion budget freeze unveiled Wednesday, as Trump followed through on threats to use the federal government shutdown as leverage against Democratic states, according to Reuters.
Bloomberg reported that the planned cancellations include funds earmarked for proposed hydrogen hubs in California and the Pacific Northwest.
In response, California Governor Gavin Newsom, a Democrat, denounced the Trump administration for withdrawing a $1.2 billion commitment to finance his state’s hydrogen center:
“California will continue to pursue a comprehensive clean energy strategy that supports our future and cleans our air, regardless of what Washington tries to dictate,” Newsom said.
President Donald Trump has long dismissed climate change as a “hoax”, arguing that environmental regulations harm the U.S. economy. On his first day in office, he signed a series of executive orders to boost oil and gas production, dismantle environmental protections, and withdraw from the Paris Climate Agreement. He also reversed many of the environmental justice initiatives enacted under former President Joe Biden.
In April 2025, Trump signed another executive order directing the Attorney General to review federal laws on environmental justice and carbon emissions, with the possibility of suspending their enforcement. His administration also halted work on the National Climate Assessment, a key scientific report on U.S. climate impacts.
Environmental experts and advocacy groups warn that these measures could have devastating global consequences, undermining U.S. efforts to fight climate change, accelerating global warming, and encouraging other countries to abandon their own climate commitments.
The United States remains the world’s second-largest emitter of greenhouse gases after China — yet historically, it is the single greatest contributor to global emissions since the industrial era.
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