The U.S. Department of Energy (DOE) announced that it has terminated 321 federal grants funding 223 projects in a sweeping cut amounting to roughly $7.56 billion.
Energy Secretary Chris Wright said the cancellations came after a comprehensive review of projects that were “not economically viable.”
The “green” projects failed to “adequately advance the nation’s energy needs,” Wright added.
About 84 of the grants were signed off by former President Joe Biden’s autopen in the final weeks of the previous administration, after the November 2024 election.
Wright said those projects stood out for “inadequate documentation by any reasonable business standard.”
In a statement, Wright said:
“President Trump promised to protect taxpayer dollars and expand America’s supply of affordable, reliable, and secure energy.
“Today’s cancellations deliver on that commitment.
“Rest assured, the Energy Department will continue reviewing awards to ensure that every dollar works for the American people.”
Many of the now-scrapped projects had been tied to the Biden-era Inflation Reduction Act.
Republicans have repeatedly blasted the misleadingly named legislation as a “Green New Scam.”
Trump’s Energy Reset
The move comes just days after Wright emphasized the administration’s plan to reindustrialize the U.S. and secure local jobs.
In an interview with CNBC on Sept. 30, he warned that “America must add at least 100GW of firm power in the next five years” to stay competitive in the global AI race.
On Sept. 29, the department also announced a $625 million investment to “expand and reinvigorate” the U.S. coal industry.
The spending will ensure consistent baseload power to keep Americans’ lights on, something renewable energy has repeatedly failed to guarantee.
The DOE said its funding review, launched in May under a secretarial memorandum titled Ensuring Responsibility for Financial Assistance, identified dozens of awardees that “did not meet the economic, national security, or energy security standards necessary to justify continued investment.”
Recipients now have 30 days to appeal the termination.
Blow To Blue States
According to Office of Management and Budget Director Russ Vought, the terminated projects were spread across 16 states, including Democrat-led California and New York.
“Nearly $8 billion in Green New Scam funding to fuel the Left’s climate agenda is being cancelled,” Vought said in an October 1 post on X.
Nearly $8 billion in Green New Scam funding to fuel the Left's climate agenda is being cancelled. More info to come from @ENERGY.
The projects are in the following states: CA, CO, CT, DE, HI, IL, MD, MA, MN, NH, NJ, NM, NY, OR, VT, WA
— Russ Vought (@russvought) October 1, 2025
The move builds on an earlier May review where Wright already flagged 24 projects worth $3.7 billion, many tied to carbon capture and decarbonization initiatives, for cancellation.
At the same time, the Trump administration has moved to freeze around $18 billion in federal funding for New York City infrastructure projects, citing unconstitutional “DEI principles” in the funding criteria.
Those projects include the Hudson Tunnel and the Second Avenue Subway, both longtime Democrat priorities.
New York’s top Democrats, Senate Minority Leader Chuck Schumer (D-NY) and House Minority Leader Hakeem Jeffries (D-NY), have been clashing with the administration over spending, even as the federal deficit hit a record $1.97 trillion by September.
Trump’s tariffs, meanwhile, brought in $165 billion in new revenue.
READ MORE – Appeals Court Gives Trump Admin Green Light to Cancel ‘Climate’ Grants
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