Secretary of Energy Chris Wright attends a press briefing this spring at Lawrence Berkeley National Laboratory in California.
Godofredo A. Vásquez/AP/AP
The U.S. Department of Energy has announced the termination of over $7 billion in secretary-bessent-mamdani-election/” title=”Treasury … Bessent Shocks NYC with 'Drop Dead' Remark Over Mamdani Election”>funding allocated to numerous projects deemed misaligned with national energy priorities and lacking economic feasibility.
This declaration came late Wednesday, coinciding with the onset of a federal government shutdown and shortly after Russ Vought, Director of the White House Office of Management and Budget, declared the Trump administration’s decision to rescind nearly $8 billion in what he labeled as “Green New Scam” expenditures. Vought highlighted on the social platform X that these Energy Department funds were directed toward initiatives in 16 states, all of which supported former Vice President Kamala Harris in the last election.
According to an official statement from the Energy Department, the decision to cut $7.56 billion from 223 projects followed an exhaustive, case-by-case evaluation process.
Energy Secretary Chris Wright emphasized, “President Trump committed to safeguarding taxpayer money while boosting America’s access to affordable, dependable, and secure energy. These cancellations reflect that promise. The Department remains vigilant in scrutinizing awards to guarantee every dollar benefits the American public.”
Details regarding the specific projects affected by these cancellations have not been disclosed, and the department has yet to respond to requests for further information.
The funding in question was distributed through six distinct offices within the Energy Department.
Secretary Wright criticized the prior administration’s expedited funding approvals, stating they were processed “in the final months of the Biden administration without sufficient documentation or adherence to standard business practices.” Recipients of the terminated funds have a 30-day window to appeal the decision.
Democratic leaders have condemned the move, interpreting it as a politically motivated attempt by the Trump administration to penalize Democratic-led states amid the government shutdown.
Senator Chris Murphy of Connecticut remarked on X, “This is no longer a functioning democracy when, amid a critical budget standoff, the President unlawfully halts federal projects in Democratic states as political retribution.”
A White House representative, Anna Kelly, directed inquiries to the Energy Department for comment.
In a related development on Wednesday, the Trump administration also suspended $18 billion in infrastructure funding for New York City, the home district of Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries, both Democrats. Vought publicized this freeze via X.
Senator Mike Lee of Utah praised Vought’s efforts on Fox News, stating, “Russ Vought has been preparing for this moment for years. His strategy is designed to strengthen Trump’s position and will be a significant challenge for Democrats.”
This funding rollback occurs amid projections of a notable increase in electricity demand for the first time in decades. Despite this, the Trump administration has taken measures to restrict the development of renewable energy projects. Industry experts and utility leaders argue that clean energy initiatives are essential to power emerging data centers and manufacturing facilities, as they can be deployed rapidly and generate electricity at a competitive cost.
Senator Jeff Merkley of Oregon warned on X, “Cutting funds exclusively from blue states will drive up utility costs for everyone. The logic is straightforward.”
