Trump Administration Weighs Cutting Billions in Clean Energy Project Funding

The U.S. government is weighing the cancellation of billions of dollars in clean energy investments, targeting programs launched under the Biden administration to support auto manufacturing, carbon capture, and electric vehicle production, according to documents reviewed by Reuters.

The list of potential cuts, first reported by Semafor, includes roughly $12 billion in projects such as two major direct air capture hubs, one involving oil giant Occidental. Other projects at risk include $500 million for General Motors to convert its Michigan plant for EVs, $335 million for Stellantis to reopen its Illinois facility for electric trucks, and $80 million for Blue Bird to build electric school buses in Georgia.

Additional grants under review include $89 million for Harley-Davidson’s EV expansion, $208 million for Volvo’s plant upgrades, and $75 million for Cummins to manufacture zero-emission components.

The Department of Energy said it is conducting “an individualized and thorough review” of all previously approved awards, insisting that no final decisions have been made.

White House budget director Russell Vought said last week the administration plans to terminate nearly $8 billion in climate-related funding in 16 Democratic-led states, including California and New York.

Cancellation of $12 billion in previously-awarded clean-energy grants - spanning direct air capture, EV manufacturing conversion, electric truck production and school-bus electrification - would create material financial exposure for the recipient companies. GM, Stellantis, Blue Bird, Harley-Davidson, Volvo, Cummins and Occidental had all incorporated federal-grant commitments into their project economics.

The state-level pattern is politically significant. Concentrating cuts in Democratic-led states while continuing to defend fossil-fuel supports in Republican-led states signals a policy approach that mixes climate-policy retrenchment with regional-political positioning. This dynamic complicates corporate investment planning where site-selection increasingly interacts with federal-funding eligibility.

For clean-tech developers, industrial manufacturers, financial institutions supporting climate-linked investment and their advisors, Cognitud's market intelligence, responsible investment and climate action teams help clients evaluate exposure to federal grant-cancellation scenarios, structure alternative-financing strategies, and prepare disclosures aligned with TCFD, ISSB and jurisdictional frameworks that give lenders and rating agencies visibility into policy-driven cash-flow risk.