DOE Cancels $7.6B Funding for 223 Clean Energy Projects in Biden-Led States

The U.S. Department of Energy (DOE) has terminated $7.56 billion in funding for 223 energy projects, primarily located in Democratic-leaning states, with the justification that these projects were not economically viable and did not sufficiently advance national energy priorities. This decision, announced amid a government shutdown and political tensions, includes a significant $1 billion cut from the Pacific Northwest Hydrogen Hub, a clean hydrogen economy initiative across Washington, Montana, and Oregon. The DOE, under Energy Secretary Chris Wright, claimed the cancellations were based on thorough reviews of awards rushed during the final months of the previous administration and aimed at protecting taxpayer dollars. Democratic officials and state attorneys general condemned the move as politically motivated retaliation against blue states, with some considering legal action. The terminations affect projects funded by multiple DOE offices covering clean energy, energy efficiency, grid deployment, manufacturing, advanced research, and fossil energy. Funding recipients have 30 days to appeal, and some have already begun the process, but the DOE has not released a detailed list of the impacted projects.