Trump Administration Axes $13 Billion in Green Energy Funds

The US Department of Energy (DOE) announced a major policy reversal, revealing its decision to return over USD 13 billion in unobligated federal funds previously allocated for clean energy programs. The move, unveiled on Wednesday, abruptly cancels support for projects involving wind, solar, battery storage, and electric vehicles that were green-lit under the previous Biden administration.

Energy Secretary Chris Wright explained that the measure fulfils the Working Families Tax Cut recently signed into law by US President Donald Trump, which mandates federal agencies to curb excessive spending. 

"Thanks to President Trump and Congress, those days are over. By returning these funds to the American taxpayer, the Trump administration is affirming its commitment to advancing more affordable, reliable and secure American energy and being more responsible stewards of taxpayer dollars," Wright stated during a press briefing.

A Shift in US Energy Priorities

This decision marks a significant departure from the previous administration’s aggressive support for climate initiatives, the official statement stated. 

Since his return to office in January, Trump has called for maximising domestic oil and gas production, scaling back federal support for renewables, and reducing funds for electrification. The DOE announcement reflects the Trump administration’s scepticism towards large-scale clean energy investments and climate action as a driver of inflation and minimal economic returns.

During his address at the United Nations General Assembly, President Trump characterised climate change as "the greatest con job in the world," underscoring his administration’s resolve to pull back from global environmental initiatives and multilateral agreements.

Impact on Clean Energy Investments and Jobs

Critics have cited rapid growth in US clean energy employment, with solar, wind, and related sectors expanding three times faster than other industries over the past year. 

With the termination of subsidies, thousands of future jobs across renewables, batteries, and electric vehicles may be put at risk if momentum shifts away from these sectors.

Secretary Wright defended the administration’s position by arguing that renewable energy subsidies had become excessive after decades of federal support. "The subsidies are 33 years old. If you’re an industry and you can’t survive after 33 years without subsidies, that’s an industry without a future," Wright told reporters.

The DOE has yet to issue a complete breakdown of affected projects and recipients, but the signal is clear - the Trump White House is redirecting federal resources toward “affordable, reliable, and secure” energy, returning unused funds to the Treasury, and drawing down its involvement in clean technology.

The latest announcement is in line with the Trump administration's recent episodes of parting ways with the clean and renewable energy agenda. A significant shift came with President Trump signing an executive order directing federal agencies to enforce the phaseout of tax credits for wind and solar energy projects under the recently passed One Big Beautiful Bill Act. The order instructs the Treasury Department to oversee the phased elimination of tax credits for wind and solar projects, dealing a major jolt to clean energy industry.