Washington, D.C.: In a dramatic escalation of the federal government shutdown standoff, the Trump administration has moved to terminate more than 320 clean energy projects and freeze nearly $18 billion in infrastructure funding a move critic are calling politically charged and economically reckless.
On Thursday, the Department of Energy (DOE) announced the cancellation of 321 financial awards, which supported 223 clean energy projects across the country. The department claimed the terminations would save taxpayers $7.56 billion and stated that the projects, many overseen by the Office of Clean Energy Demonstrations and the Office of Energy Efficiency and Renewable Energy, “did not adequately advance the nation’s energy needs” or guarantee a return on public investment.
The cancellations come amid a deepening budget impasse in Congress, with the Trump administration blaming Democrats for the funding gridlock. US President Donald Trump has ramped up pressure tactics as the shutdown stretches on, including threats of mass federal layoffs and broad departmental cuts.
In a post on X, Russell Vought, head of the Office of Management and Budget, called the now-defunded programs part of the “Green New Scam” and accused them of advancing the Left’s climate agenda.
California Governor Gavin Newsom decried the loss of $1.2 billion for a hydrogen energy project, warning that the move could threaten tens of thousands of jobs. In Trump’s America, energy policy is set by the highest bidder economics and common sense be damned,” he said, vowing to pursue clean energy regardless of federal interference.
Meanwhile, in New York, the Department of Transportation (USDOT) announced a freeze on $18 billion in funding for two major projects the Second Avenue subway and Hudson Tunnel. The department cited race- and sex-based contracting requirements, calling them unconstitutional and contrary to civil rights laws.
Governor Kathy Hochul called the action political payback and an attack on New York, accusing Trump of using the shutdown as a tool to hurt the American people.
The USDOT said the funds will remain frozen until an administrative review is complete, but warned that the process could be delayed due to the furloughing of civil rights staff amid the ongoing shutdown.
While recipients of DOE funding have 30 days to appeal, officials across impacted states are bracing for economic fallout and preparing legal responses.