Electrical lines stretching into the distance

US Department of Energy cancels $3.7B in clean energy grants to review cost and security concerns

The U.S. Department of Energy abruptly canceled $3.7 billion in clean energy grants approved under former President Biden, including major carbon-cutting projects in fossil fuel and industrial sectors, citing financial and national security concerns.

Brian Dabbs, Carlos Anchondo, and Christa Marshall report for E&E News.

In short:

The Department of Energy canceled 24 clean energy grants, including major carbon capture and hydrogen initiatives involving Exxon Mobil, Kraft Heinz, and major cement firms, with only $99 million disbursed so far.
Energy Secretary Chris Wright said the Trump administration is reviewing all awards for return on investment and national security relevance, calling previous financial vetting inadequate.
Critics, including lawmakers and industry groups, warned the cancellations risk ceding technological and economic leadership to other countries and jeopardize domestic manufacturing growth.

Key quote:

“Businesses require certainty to plan and execute projects, and carbon management is no different.”

— Jessie Stolark, executive director of the Carbon Capture Coalition

Why this matters:

Canceling billions in clean energy funding shifts momentum away from emerging carbon management technologies just as global competitors race ahead. Projects targeted in this wave of cancellations aimed to cut emissions from sectors like cement and natural gas — among the hardest to decarbonize. The U.S. has long led development of carbon capture systems, but pulling support now sends a chilling message to private investors and scientists working on climate solutions. It also adds uncertainty to industries trying to modernize facilities and shrink pollution footprints while maintaining competitiveness. At the same time, the U.S. Environmental Protection Agency continues to promote carbon capture with faster permitting, suggesting a disconnect in federal climate policy.

Learn more: Clean energy funding freeze leaves rural farmers in financial limbo

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Smoke billows from an industrial chimney at sunset near several homes.

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Judge rules EPA overstepped in cutting pollution grants

A federal judge has blocked the Trump administration from canceling $600 million in environmental justice grants aimed at helping underserved communities reduce pollution.

Rachel Frazin reports forThe Hill.

In short:

The grants stem from the 2022 Inflation Reduction Act, which set aside $3 billion for environmental justice programs.
The U.S. Environmental Protection Agency under President Biden had planned to distribute the $600 million through regional groups, which would fund local efforts, before the Trump EPA terminated the grants earlier this year.
Judge Adam Abelson ruled the EPA's cancellation exceeded its authority “precisely because they are ‘environmental justice’ programs."

Key quote:
The move included a “lack of any reasoned decision-making, or reasoned explanation.”

— Judge Adam Abelson, U.S. District Court

Why this matters:
Underserved communities often face the greatest environmental health risks and climate impacts. These grants were designed to help local groups respond to long-standing environmental harms and health risks, and canceling them would have cut off vital support just as cleanup efforts were beginning to gain traction. The Trump administration has also attempted to cancel a similar $20 billion program that would fund climate-friendly projects.

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