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Energy Department to Slash $7.5B in Project Funds, Almost All in Democrat-Led States

The Department of Energy canceled $7.5 billion for 223 projects after a review found them economically unviable and not advancing U.S. energy needs, affecting 16 states.

  • On October 2, 2025, the U.S. Department of Energy announced it terminated 321 federal grants funding 223 projects, saving approximately $7.56 billion.
  • Energy Secretary Chris Wright said the DOE review team found projects failed to meet economic, national security, and energy standards after the May memo ordered case-by-case audits.
  • Across 16 states, the terminations target projects including California and New York, with 26% of canceled awards valued at more than $3.1 billion handed out between Election Day and Inauguration Day; about 84 grants were signed by former President Joe Biden’s autopen.
  • Recipients have 30 days to appeal the terminations, and DOE officials warned more reviews could follow with legal challenges likely.
  • Democratic leaders immediately denounced the move, saying cancellations punish Democrats amid the shutdown, while critics warn cuts clash with rising electricity demand despite the $625 million coal investment announced Sept. 29.
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kboi.com broke the news in on Thursday, October 2, 2025.
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