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Energy Department cancels green projects in United States
U.S. Department of Energy Secretary Chris Wright attends a Reuters Next event in Manhattan, New York City, U.S., Sept. 25, 2025.
Carlos Barria | Reuters
The Energy Department’s cancellation of more than 300 funding awards to projects in 16 states won by Kamala Harris in the 2024 presidential election slammed the brakes on efforts to reduce carbon emissions, air and water pollution and strengthen electrical grids.
The cancellations of nearly $8 billion in funding were announced on Wednesday, the first day of a federal government shutdown, and on the same day that the administration froze a whopping $18 billion in funding for two massive infrastructure projects in New York City — the home of Congress’s two top Democrats.
While some of the cancellations were new, others had been previously announced in May.
“There would have been significant emissions reductions from these projected,” said Ian Wells, a senior advocate at the National Resources Defense Council, an advocacy group. “Not only greenhouse emissions, but things that would lead to green air and water,” Wells said.
Wells mentioned one cancelled $87 million grant issued to Sublime Systems , which was to build low-carbon cement manufacturing in Holyoke, Massachusetts, involving between 70 and 90 jobs.
“It was about restoring American manufacturing competitiveness, and growing jobs,” as well as protecting the environment, Wells said.
“It’s potentially a win-win-win, and that is potentially now being thrown out.”
The Energy Department did not release the details of the 223 projects affected by the funding termination.
But Democrats on the House Appropriations Committee compiled a list of affected projects and released it on Thursday afternoon.
“The termination of these critical energy projects will increase energy prices, eliminate jobs, and make the energy grid less reliable,” the group said.
The terminated funding included $1.12 billion for a hydrogen hub in California under the so-called ARCHES program — The Alliance for Renewable Clean Hydrogen Energy Systems.
“Today’s decision to withdraw federal funding for ARCHES ignores the critical benefits our projects will deliver – including 220,000 American jobs and stronger national energy security and resilience,” said ARCHES CEO Angelina Galiteva in a statement.
“The ARCHES Ecosystem and Marketplace will continue to advance in collaboration with state leaders and private sector innovators – building on our strong foundation to create a reliable, future-focused domestic hydrogen network for California and beyond.”
Another $1.1 billion in grants for energy projects across Washington state, including the Pacific Northwest Hydrogen Hub, were cancelled by the Energy Department, according to Washington state officials.
“That hub will create a clean hydrogen economy across our region,” Washington Gov. Bob Ferguson said in a statement to CNBC.
“It is outrageous that this administration is using a government shutdown to punish blue states like Washington,” Ferguson said. “We’re working with the Attorney General’s Office to fight this illegal action.”
Senate Minority Leader Chuck Schumer, a New York Democrat, in a statement about the funding cuts said, “This goes beyond targeting blue states. It’s taking a wrecking ball to working families’ lives: putting construction workers out of a job and raising families’ electric bills for political gain.”
“Donald Trump is threatening to hike energy costs and waste billions, wiping out projects already underway in his endless campaign for chaos & revenge and in the process axing thousands of American jobs,” Schumer said.
“It is outrageous and counterproductive to pull the rug out from local projects, workers, & businesses that grow our local economies, spearhead American innovation, and lower costs.”
This is developing news. Check back for updates.
