The Trump administration announced the cancellation of nearly $8 billion in climate-related funding, citing concerns over the “Green New Scam” agenda. Office of Management and Budget (OMB) Director Russ Vought stated the funds targeted projects in California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Vermont, and Washington. Most affected states are governed by Democratic leaders, with the exception of New Hampshire and Vermont.
CBS News reported the decision follows a pause on approximately $18 billion in infrastructure projects in New York City, including the Hudson Tunnel and Second Avenue Subway. Vought claimed the holds were necessary to “ensure funding is not flowing based on unconstitutional DEI principles,” referencing diversity, equity, and inclusion policies. The Department of Transportation noted that civil rights staff, responsible for reviewing projects, had been furloughed due to the government shutdown.
The U.S. Department of Energy (DOE) confirmed the termination of 321 financial awards for 223 projects, saving $7.56 billion in taxpayer funds. A statement cited the projects’ failure to advance energy needs, economic viability, or return on investment. Secretary of Energy Chris Wright praised the move as fulfilling Trump’s pledge to “protect taxpayer dollars” and expand reliable energy.
California’s hydrogen hub, ARCHES, which received $1.2 billion in Biden-era funding, was among the cuts. The state’s governor, Gavin Newsom, criticized the decision, calling it a rejection of clean energy progress. “In Trump’s America, energy policy is set by the highest bidder, economics and common sense be damned,” Newsom said, vowing to continue pursuing clean energy initiatives despite federal actions.
The Energy Department also announced increased fossil fuel production, including opening 13 million acres for coal mining and allocating $625 million to modernize coal plants.