The Trump administration has canceled $7.6 billion in federal grants for clean energy projects across 16 Democrat-led states, including California, New York, and Washington.
The decision affects 223 initiatives ranging from battery plants and hydrogen hubs to carbon-capture projects and grid upgrades.
Excellent point from John Yoo: blue cities and states are waging a lawfare campaign to attack American energy and interfere with President Trump’s energy agenda.
— Fmr. Rep. Jason Isaac (@ISAACforEnergy) October 2, 2025
This isn’t policy. It’s extortion, plain and simple. pic.twitter.com/GB31pYBOtm
White House budget director Russell Vought framed the cuts as ending “nearly $8 billion in Green New Scam funding to fuel the Left’s climate agenda.”
The Energy Department said the projects failed to demonstrate economic viability or clear benefits to U.S. energy security. More than a quarter of the rescinded funds were awarded between Election Day and Inauguration Day last year.
The Trump administration is yanking green energy and infrastructure funding away from blue states on day one of the Republican-led government shutdown. https://t.co/H93dXVFLhk pic.twitter.com/aC1GmDq0qY
— The New Republic (@newrepublic) October 2, 2025
California Governor Gavin Newsom warned the cancellation of his state’s $1.2 billion hydrogen hub jeopardizes 200,000 jobs.
Democrats blasted the move as politically motivated, while Energy Secretary Chris Wright argued the cuts fulfill President Trump’s promise to protect taxpayers and expand affordable, reliable domestic energy.
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