The U.S. Department of Energy (DOE) announced plans to cancel more than $13 billion in federal funds originally pledged by the Biden administration to subsidize wind, solar, battery storage, and electric vehicle (EV) projects. The DOE did not immediately specify which renewable energy and EV subsidies would be affected, Reuters news report said.
Energy Secretary Chris Wright confirmed the move during a press conference in New York, emphasizing President Donald Trump’s commitment to “affordable, reliable and secure American energy” and returning unspent funds to taxpayers. The decision underscores the administration’s broader strategy to scale back federal clean-energy incentives while expanding oil and gas production, which already hit record levels earlier this year.
The announcement drew swift criticism from clean-energy advocates and political leaders. California Governor Gavin Newsom warned that the policy reversal could undermine U.S. leadership in renewable technology and allow China to dominate global clean-energy markets. “I think President Xi is going to give President Trump a bear hug when he arrives,” Newsom said during a climate event hosted by the New York Times.
The funding rollback follows Trump’s remarks at the United Nations General Assembly dismissing climate change as “the greatest con job,” signaling a sharp departure from international climate commitments and multilateral climate cooperation.
Industry groups caution that the move could jeopardize a sector that is growing three times faster than the overall U.S. workforce, according to a recent E2 report. The clean-energy job boom—spanning solar, wind, and EV manufacturing—could face significant slowdowns if subsidies are cut.
Analysts say the decision will have wide-ranging implications for ESG investing, renewable energy developers, and state-level climate initiatives, as federal funding has been a key driver of clean-tech deployment. With Trump unlikely to attend the upcoming UN climate talks in Brazil, the U.S. approach to global climate leadership remains in question.
GreentechLead.com News Desk