Department of Energy to Investigate Termination of Clean Energy Funding

Fri Dec 19 2025 03:25:41 GMT+0200 (Eastern European Standard Time)

An internal watchdog within the U.S. Department of Energy announced an investigation into the Trump administration's abrupt cancellation of $7.6 billion in clean energy grants, impacting states that favored Kamala Harris in the 2024 election.

The investigation will scrutinize whether the terminations of 321 funding awards for renewable energy projects were handled appropriately. Critics, including multiple Democratic representatives, argue that the cuts were politically motivated and could lead to significant job losses and increased energy costs in the affected states. The review aims to determine compliance with laws and regulations governing the distribution of such funds while reflecting ongoing tensions regarding federal funding and environmental policies.

The U.S. Department of Energy's internal watchdog is set to investigate the controversial cancellation of $7.6 billion in clean energy grants by the Trump administration. The funding terminations affect hundreds of projects in 16 states that notably supported former Vice President Kamala Harris in the 2024 election.

Democrats have welcomed this investigation, claiming that the cuts endanger jobs in manufacturing and construction, disrupt efforts to enhance the electric grid, and pose a threat to rising energy costs for Americans.

As stated by Sarah Nelson, the assistant inspector general of the Energy Department, the probe's aim is to ascertain whether the cancellations aligned with existing legal and regulatory standards. This work will help ensure that these activities are conducted consistently with applicable laws, regulations, and Departmental policies and procedures, she pointed out.

Back in October, the Department announced that 321 awards across 223 projects had been revoked, asserting they did not adequately meet the nation's energy demands or fiscal viability. Underlining the issue at hand, Senate members and representatives from California, led by Senators Adam Schiff and Alex Padilla, implored an official investigation, characterizing the decisions as politically driven and detrimental to Americans. They expressed concern that the cuts were unlawful and reflected efforts to punish Democratic-leaning states.

The harshest blow hit California—these measures included the elimination of over $1 billion earmarked for a hydrogen hub project within the state. The situation continues to unfold against the backdrop of a polarized political climate, raising critical questions about the intersection of energy policy and political favoritism.