The U.S. Department of Energy (DOE) is reversing course on tens of billions of dollars in clean energy loans previously approved under the Biden administration. As of Thursday, the agency announced it is canceling or revising over $29.9 billion in funding commitments for projects ranging from battery manufacturing to hydrogen plants and transmission infrastructure.
Shift in Policy Under New Leadership
This move marks a sharp departure from the Biden administration’s aggressive push to deploy new climate technologies through the DOE’s loan programs. During President Biden’s term, the agency committed roughly $104 billion in lending for various clean energy initiatives. However, under the Trump administration, the DOE underwent restructuring, rebranding its loan programs office as the “Office of Energy Dominance Financing.”
Sweeping Review and Funding Reversal
Last year, Energy Secretary Chris Wright initiated a comprehensive review of all outstanding loan obligations. The outcome of that review is now clear: nearly $30 billion in previously approved funding will no longer be disbursed. While another $53.6 billion in loans and guarantees remain active, they are subject to revisions. The DOE has not detailed what these revisions entail, leaving the future of those projects uncertain.
Why This Matters
This decision represents a significant setback for the clean energy sector. These loans were intended to de-risk investments in nascent technologies, enabling companies to build large-scale facilities and accelerate the transition away from fossil fuels. The abrupt cancellation of billions in funding raises questions about the long-term viability of these projects and may discourage future investment in emerging climate technologies. The shift in DOE policy also highlights the political volatility of clean energy funding, where priorities can change dramatically with each new administration.
The cancellation of $30 billion in clean energy loans is a clear signal that the current administration is prioritizing different energy strategies, potentially slowing down the nation’s progress toward climate goals.
