The Department of Energy cancels $7.5B of clean energy projects in mostly blue states, shaking up the Biden-Harris administration’s climate agenda. The agency confirmed late Wednesday that it is canceling 321 awards totaling $7.56 billion, many of them tied to hydrogen hubs and direct air capture programs.
Image Credits:Aaron Schwartz/CNP/Bloomberg / Getty Images
While the Department has not yet released a public list of the affected projects, reporting from E&E News and Heatmap shows the cuts disproportionately impact states that voted for Vice President Kamala Harris in the last presidential election. However, a handful of projects in Republican-led states were also scrapped.
Major Clean Energy Projects On The Chopping Block
California Gov. Gavin Newsom revealed that the state’s $1.2 billion hydrogen hub—the Alliance for Renewable Clean Hydrogen Energy Systems—was among the largest projects canceled. Reports also indicate that hydrogen hubs in Texas and Louisiana were eliminated.
Additionally, at least 10 direct air capture (DAC) projects worth $47.3 million were cut, though some DAC projects in Alaska, Kentucky, Louisiana, and North Dakota survived. These technologies have been backed by the oil and gas industry since captured carbon can be injected into aging oil wells to improve production.
States Hit Hardest By DOE Cancellations
Beyond California, the Department of Energy cancels $7.5B of clean energy projects in mostly blue states including Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, New York, Oregon, Vermont, and Washington.
Florida and Tennessee, both politically mixed states, were also affected. The widespread cancellations are seen as a major setback for federal clean energy investment and state-level climate initiatives.
Political Fallout And Partisan Reactions
Russell Vought, director of the Office of Management and Budget, confirmed the list of canceled projects on social media. He emphasized that “the Left’s climate agenda is being cancelled,” fueling partisan debate amid a heated government shutdown fight.
Critics argue the move disproportionately targets Democratic-led states, while supporters claim it reins in excessive federal spending on unproven technologies. With 16 of the hardest-hit states having voted for Kamala Harris, the decision has added new fire to an already polarized climate policy battle.
What’s Next For U.S. Clean Energy?
The cancellation of billions in projects could reshape the country’s clean energy roadmap, slowing down progress on carbon capture and hydrogen technology. Industry leaders warn that the cuts undermine U.S. competitiveness in the global energy transition, while political analysts say the move is likely to be a flashpoint in the upcoming election cycle.
For now, the future of America’s clean energy push remains uncertain—especially as the Department of Energy cancels $7.5B of clean energy projects in mostly blue states, leaving investors, climate advocates, and local communities scrambling for answers.
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