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In a move signaling a sharp pivot away from clean energy development, the Trump administration has terminated two federal clean energy grants and placed roughly 300 more under review, sparking concern from environmental advocates, industry leaders, and lawmakers alike. The decision reflects President Trump’s ongoing prioritization of fossil fuel expansion—a cornerstone of his energy agenda.
According to internal Department of Energy (DOE) documents obtained by the Associated Press, the canceled projects include a $5.3 million initiative to retrofit low-income multifamily buildings in Massachusetts and California with energy-saving upgrades, and a $1.5 million study evaluating electric vehicle (EV) carsharing programs in U.S. cities. Both grants were awarded to RMI, a respected nonprofit clean energy think tank based in Colorado.
DOE stated the projects “do not meet the administration’s objectives,” a thinly veiled reference to Trump’s “energy dominance” policy, which leans heavily on domestic oil, gas, and coal production. With that framework, the administration has launched what many are calling a rollback campaign targeting clean energy funding initiatives, some of which were established under President Biden’s $1 trillion bipartisan infrastructure law.
These grants aren’t isolated casualties. A larger list—dubbed a “hit list” by insiders—reportedly includes wind, solar, battery storage, EV charging infrastructure, and industrial decarbonization efforts. In total, billions in clean energy investments may be on the chopping block as the Trump administration scrutinizes whether such projects align with its pro-fossil fuel stance.
Impacts on Innovation and Energy Costs
The abrupt halting of projects could have far-reaching implications beyond environmental goals. RMI spokesperson Dina Cappiello confirmed the EV car sharing work will not continue and said the organization had anticipated resistance from the administration. She noted that while some retrofit work might be completed under earlier grants, the uncertainty has already disrupted timelines and goals.
Rep. Marcy Kaptur (D-Ohio), the top Democrat on the House Appropriations energy subcommittee, criticized the administration’s decision, warning that halting clean energy projects would likely drive up energy costs and obstruct job creation in sectors that are poised for long-term growth.
“We need the Department of Energy to work with us, not against us,” Kaptur said. “At a bare minimum, we demand the department to follow the law as intended.”
A Global Contrast
While the U.S. takes a step back, the rest of the world—particularly China—is surging forward. According to the International Renewable Energy Agency, renewable energy accounted for a staggering 92.5% of all new electricity capacity installed globally in 2024. China alone added nearly two-thirds of that capacity, underscoring its dominant position in the green energy race.
This contrast paints a stark picture: as international markets scale up renewable infrastructure, the U.S. risks not only falling behind in climate commitments, but also missing out on a wave of innovation, cost savings, and job creation that clean energy promises.
The Bigger Picture
The administration’s moves align with Trump’s long-standing “drill, baby, drill” philosophy, which has included everything from easing emissions regulations to expanding oil drilling on public lands. Critics argue that this short-term thinking undermines national resilience in the face of climate change and energy volatility.
RMI and similar organizations have long worked with both Republican and Democratic administrations to promote clean, secure, and reliable energy. Pulling the plug on projects that directly lower emissions and energy costs for low-income communities not only slows innovation but potentially increases the country’s long-term financial and environmental burden.
As legal challenges and political battles over these terminations unfold, one thing is clear: the direction of U.S. energy policy is once again at a crossroads. With global energy markets shifting rapidly toward renewables, the question remains whether America will lead—or lag—in the next energy revolution.
Source: Associated Press
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