MARKET STRUCTURE · USA

Department of Energy cancels $7.5B of clean energy projects in mostly blue states

TechCrunch 5 Oct 2025 · 12:00 AM
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The Department of Energy has canceled $7.56 billion in clean energy project awards, primarily affecting states that supported Kamala Harris in the last election.
Department of Energy cancels $7.5B of clean energy projects in mostly blue states
Why it matters
On October 2, 2025, the Department of Energy revealed it would cancel 321 awards totaling $7.56 billion, primarily targeting clean energy initiatives. The majority of these cuts affected states that supported Kamala Harris in the last presidential election, although some projects in Republican states were also included. Notable cancellations include California's $1.2 billion hydrogen hub and several direct air capture projects. The decision has drawn criticism and legal challenges from awardees, who have 30 days to appeal. This move aligns with the Trump administration's broader strategy to roll back clean energy initiatives, as evidenced by previous cancellations and restrictions on climate-related language within the agency. The situation underscores the contentious nature of U.S. energy policy and the ongoing debate over fossil fuel reliance versus clean energy development.
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Energy & Power Renewable Energy

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