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US Energy Department cancels funding of $7.6 billion for projects

The U.S. Department of Energy announced on Wednesday that it would cancel $7.56 Billion in financing for hundreds of projects, which it claimed wouldn't provide enough returns to the taxpayer.

The announcement by the department came after White House Budget Director Russell Vought announced in a post to X that administration would cut nearly $8 billion of climate-related funding over 16 months.

Democratic-led States

California and New York are included.

The freeze was part of an overall $26 billion funding cut that President Donald Trump announced on Wednesday.

Follow through on a Threat

Use the shutdown of the federal government to advance Democratic goals

In a late-Wednesday statement, the DOE announced that it would cancel financial awards for 223 projects. The DOE did not name the projects but stated that the grants were issued by six agencies responsible for clean energy and efficiency, grid deployments, advanced research, manufacturing, and fossil fuels.

In a press release, Energy Secretary Chris Wright stated that "President Trump pledged to protect taxpayers' dollars and increase America's supply affordable, reliable and secure energy". The cancellations of today are a result of that commitment. The Energy Department will continue to review awards in order to make sure that every dollar is working for the American people.

Bloomberg had reported earlier that funding was being planned for hydrogen hubs proposed in California and Pacific Northwest.

California Governor Gavin Newsom (a Democrat) criticized the Administration for canceling their $1.2 billion commitment towards funding his state's hydrogen center.

Newsom stated in a press release that "we'll continue to follow an all-of the-above strategy for clean energy, which powers our future and cleanses the air no matter what DC attempts to dictate." (Reporting and editing by Chris Reese, Thomas Derpinghaus and Nichola Gardner.

(source: Reuters)