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Trump Administration slashes clean energy funding, hundreds of projects at risk

Jacob Shelton March 29, 2025

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Senator Edward J. Markey and Mayor Jon Mitchell walk past the solar farm on Hathaway Road during the Senators stop in New Bedford to tout the Inflation Reduction Act's clean energy investments. Senator Markey Visits New Bedford To Tout Inflation Reduction Act S Clean Energy Investments

Washington D.C. – The Trump administration is pulling funding for two major clean energy projects and placing roughly 300 others in jeopardy as it prioritizes fossil fuel expansion.

According to a document reviewed by The Associated Press, the Department of Energy (DOE) has canceled two grants awarded to RMI, a Colorado-based nonprofit think tank focused on clean energy. The first, worth nearly $5.3 million, was intended to retrofit low-income multifamily buildings in Massachusetts and California, demonstrating methods to reduce energy consumption and greenhouse gas emissions. The second, a $1.5 million grant, aimed to explore business models for electric vehicle carsharing in U.S. cities.

In a statement explaining the cancellations, the DOE claimed the projects did not align with the administration’s energy objectives. President Donald Trump has consistently emphasized fossil fuel development, framing his policy as “drill, baby, drill.” His administration has declared an energy emergency to expedite oil, gas, and coal production—the primary contributors to human-caused global warming.

The two canceled grants are only the beginning. The DOE is reportedly reviewing approximately 300 clean energy projects, including investments in wind, solar, battery storage, and electric vehicle infrastructure. Many of these projects were funded through the bipartisan $1 trillion infrastructure law signed by President Joe Biden in 2021, which sought to transition industries away from fossil fuels and decarbonize buildings.

E&E News first reported last week that the DOE had created a “hit list” of clean energy projects potentially facing termination. The funding cuts are likely to have far-reaching consequences, slowing clean energy progress, stalling job creation, and keeping energy costs high.

The Trump administration’s efforts to dismantle climate-focused funding extend beyond the DOE. Earlier this month, the Environmental Protection Agency (EPA) terminated $20 billion in grants issued under a Biden-era green bank initiative designed to finance climate-friendly projects. A federal judge has temporarily blocked the administration from fully eliminating the program.

Lawmakers have criticized the administration’s actions. Rep. Marcy Kaptur (D-Ohio), the ranking Democrat on the House Appropriations energy subcommittee, warned that pulling funding for clean energy projects will directly impact families and businesses.

“We need the Department of Energy to work with us, not against us, to lower energy costs and help create good-paying jobs,” Kaptur said. “At a bare minimum, we demand the department follow the law as intended.”

RMI spokeswoman Dina Cappiello confirmed that the nonprofit had received a termination letter for its electric vehicle carsharing project and expects the retrofitting project to be next. She warned that these funding cuts could halt crucial clean energy advancements, harming efforts to reduce energy costs, increase resilience, and create jobs.

Despite the administration’s moves to curtail clean energy, global momentum remains strong. A recent report from the International Renewable Energy Agency revealed that renewable energy installations reached a record high last year, with 92.5% of all new electricity coming from wind, solar, and other clean sources. China led the charge, accounting for nearly 64% of new capacity in 2024.

With hundreds of U.S. clean energy projects now under review, the future of federal climate initiatives remains uncertain.

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