Trump’s DOE Proposes Cutting Billions In Grants For GM, Ford, And Lots Of Startups
The U.S. Department of Energy has sparked controversy once again. Trump’s DOE proposes cutting billions in grants for GM, Ford, and lots of startups, targeting programs meant to accelerate America’s clean energy transition.
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According to a TechCrunch analysis of internal documents, the proposed cuts could eliminate more than $500 million in contracts awarded to over a dozen startups. These grants were originally funded under the Bipartisan Infrastructure Law, and the new proposal adds to the $7.5 billion in cuts announced by the Trump administration just last week.
Major Automakers Among The Hardest Hit
It’s not just startups feeling the pinch. Automakers like Ford, General Motors, and Stellantis are also on the chopping block. Other companies set to lose hundreds of millions in grants include Daimler Trucks North America, Harley-Davidson, Mercedes-Benz Vans, and Volvo Technology of America, according to the internal DOE document reviewed by TechCrunch.
While these are still proposed cuts, sources familiar with the discussions have confirmed their accuracy. The move could reshape how major automakers approach electric and hybrid vehicle production in the coming years.
GM Could Lose Half A Billion In Federal Funding
Among the biggest potential losers is General Motors, which stands to forfeit at least $500 million in grant money from the Domestic Manufacturing Conversion Grant program. The funds were intended to retool GM’s Lansing Grand River Assembly Plant in Michigan—a key site for the company’s electrification plans announced in 2024.
Losing this funding could delay GM’s efforts to ramp up hybrid and electric vehicle production, putting pressure on the company’s long-term clean energy goals.
Startups Face Steep Challenges Ahead
The DOE’s proposed cuts could have a devastating impact on early-stage innovators. Many of the affected startups were counting on federal grants to scale production and attract additional private investment.
Some of the largest proposed cuts include:
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Brimstone, a materials startup awarded $189 million to build a low-carbon cement and alumina plant.
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Anovion, a Chicago-based company developing a domestic synthetic graphite supply chain for lithium-ion batteries.
These projects were crucial for reducing dependence on Chinese suppliers and cutting industrial carbon emissions. Without federal support, their timelines could face major setbacks.
Industry Uncertainty Grows
The decision comes at a time when the U.S. clean tech sector is already grappling with supply chain challenges and increased global competition. Industry observers warn that the cuts could undermine American leadership in green manufacturing just as global demand for sustainable materials and EVs accelerates.
The DOE has not yet made the full list of proposed cancellations public, and several companies have declined to comment while awaiting final confirmation.
As Trump’s DOE proposes cutting billions in grants for GM, Ford, and lots of startups, the broader question looms: can the U.S. maintain its competitive edge in clean energy innovation without consistent federal support?
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