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TechCrunch
TechCrunch
4w ago 25 views

Exclusive: Trump's DOE proposes cutting billions in grants for GM, Ford, and lots of startups

The Trump administration plans to cut over $500 million in federal grants affecting major automakers and startups, jeopardizing their operations and projects.
Exclusive: Trump's DOE proposes cutting billions in grants for GM, Ford, and lots of startups
A What happened
The Trump administration's Department of Energy is proposing to cut over $500 million in federal grants, which could significantly impact major automakers such as Ford, General Motors, and Stellantis, along with various startups. This decision is part of a larger initiative to reduce funding by more than $7.5 billion. The proposed cuts include grants awarded under the Bipartisan Infrastructure Law, which were intended to support projects like the retooling of plants for electric vehicle production. Startups like Brimstone, which aimed to produce low-carbon cement, and Anovion, focused on domestic synthetic graphite production, are among those facing substantial funding losses. Other affected companies include Daimler Trucks and Harley-Davidson, with some grants exceeding $100 million. The cuts could hinder advancements in energy efficiency and sustainable materials, contradicting the administration's stated goals of promoting energy and AI dominance.

Key insights

  • 1

    Impact on Automakers

    Major automakers face significant funding cuts affecting their electric vehicle initiatives.

  • 2

    Startup Vulnerability

    Numerous startups risk losing critical funding for innovative projects.

  • 3

    Bipartisan Infrastructure Law

    Cuts target grants awarded under this law, impacting sustainability efforts.

Takeaways

The proposed funding cuts could have far-reaching implications for the automotive and startup sectors focused on sustainability.