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Donald Trump halts more than $300bn in US green infrastructure funding

New president’s order to pause federal disbursements cuts critical loans and grants to developers

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Donald Trump’s return to the White House has put more than $300bn of potential federal infrastructure funding at risk, US investors said, as they grappled with the scale of his move to unpick Joe Biden’s climate agenda.
Within hours of his inauguration on Monday, Trump signed scores of executive orders rescinding Biden’s policies, including one halting federal disbursements to manufacturers and infrastructure developers.
The funds affected were provided under two of Biden’s signature legislative achievements — the Inflation Reduction Act and bipartisan infrastructure law — and include almost $50bn in Department of Energy loans already agreed and another $280bn worth of loan requests under review, according to Financial Times analysis of the DoE’s loan portfolio.
“All agencies shall immediately pause the disbursement of funds appropriated” through the acts, the Trump administration said in an executive order titled “Unleash American Energy”.
Among the disbursements now immediately in peril are a $9bn conditional loan to Michigan-based utility DTE Energy and another of $3.5bn to Oregon-based utility PacifiCorp.
DTE did not immediately respond to a request for comment. PacifiCorp said it was working with the department on the loan guarantee conditions.
“If you had grants, loan guarantees, funding that was sort of tied in with the IRA and the money’s not out the door yet, it’s going to be very hard to see that money go out the door under the Trump administration,” said Rob Barnett, a senior analyst at Bloomberg Intelligence. 
The executive order was among dozens signed by Trump in a late-night blitz after he was sworn in for a second presidential term and promised to end Biden’s “Green New Deal” and boost fossil fuel output.
Trump’s move to halt the funding sent a shockwave through the clean energy sector and signalled his intent to undermine Biden’s industrial policy, particularly his programmes to speed up an energy transition.
“The executive orders indicate that federal funding for EV and battery manufacturing will be harder to access, increasing the risk of stranded capital for manufacturing projects already under way,” said Shay Natarajan at Mobility Impact Partners, a private equity fund based in New York. 
The 2021 infrastructure law offered $1.2tn to improve the country’s transport system, while the IRA offered $370bn in tax credits, grants and loans.
Both programmes vastly expanded the Department of Energy’s Loan Programs Office, which was responsible for doling out $400bn to developers and has been a favourite target of Republican attacks.
Investors said they feared another $300bn worth of future federal funding — mostly from the infrastructure law — would also now be frozen by Trump’s move.
Unlike the money in the loans office, the IRA’s tax credits — the main form of subsidy in the legislation — are unlikely to be affected. The credits have been a primary driver of investment, with manufacturers committing more than $130bn since the law passed, according to FT analysis. 
Fearing that Trump would move to halt the disbursements, Biden officials rushed nearly $50bn in loan commitments out to developers in the weeks after he won re-election in November.
Trump also wants to stop construction of wind farms on federal lands and waters and said he would end “unfair subsidies” for electric vehicles. Shares in Tesla, Rivian, Ørsted and other EV and wind companies fell on Tuesday.  
This week, Italian cable manufacturer Prysmian Group said it was scrapping plans to build a factory in Somerset, Massachusetts, which would have made cables for the offshore wind sector.  
Other investors had already scaled back their US renewable energy plans in the US ahead of Trump’s return. German energy giant RWE announced in November it was pulling back its US wind power plans. 
Nearly 25GW of offshore wind projects, 65 per cent of the US projects in development, are unlikely to progress under the Trump administration, Rystad Energy said on Tuesday.
“When you start to make it look like there’s a lack of stability in the investment that you thought you were making into the US, that has a potentially very negative effect, long term, on our ability to attract capital,” said Eli Hinckley, a partner at Baker Botts.
Additional reporting by Claire Bushey, Christian Davies, Harry Dempsey, Kana Inagaki, Laura Pitel, Rachel Millard, Attracta Mooney, Stephen Morris, Patricia Nilsson
This article has been amended since publication to correct the funding figure for the 2021 infrastructure law.
The Financial Times

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Comment by Dan McKay on January 24, 2025 at 5:20am

Sorry, no reaction from the Augusta Elites. It is full speed ahead with the agenda of Net Zero Carbon Dioxide and100% renewables. You will pay big energy bills and you will like it.

 

Maine as Third World Country:

CMP Transmission Rate Skyrockets 19.6% Due to Wind Power

 

Click here to read how the Maine ratepayer has been sold down the river by the Angus King cabal.

Maine Center For Public Interest Reporting – Three Part Series: A CRITICAL LOOK AT MAINE’S WIND ACT

******** IF LINKS BELOW DON'T WORK, GOOGLE THEM*********

(excerpts) From Part 1 – On Maine’s Wind Law “Once the committee passed the wind energy bill on to the full House and Senate, lawmakers there didn’t even debate it. They passed it unanimously and with no discussion. House Majority Leader Hannah Pingree, a Democrat from North Haven, says legislators probably didn’t know how many turbines would be constructed in Maine if the law’s goals were met." . – Maine Center for Public Interest Reporting, August 2010 https://www.pinetreewatchdog.org/wind-power-bandwagon-hits-bumps-in-the-road-3/From Part 2 – On Wind and Oil Yet using wind energy doesn’t lower dependence on imported foreign oil. That’s because the majority of imported oil in Maine is used for heating and transportation. And switching our dependence from foreign oil to Maine-produced electricity isn’t likely to happen very soon, says Bartlett. “Right now, people can’t switch to electric cars and heating – if they did, we’d be in trouble.” So was one of the fundamental premises of the task force false, or at least misleading?" https://www.pinetreewatchdog.org/wind-swept-task-force-set-the-rules/From Part 3 – On Wind-Required New Transmission Lines Finally, the building of enormous, high-voltage transmission lines that the regional electricity system operator says are required to move substantial amounts of wind power to markets south of Maine was never even discussed by the task force – an omission that Mills said will come to haunt the state.“If you try to put 2,500 or 3,000 megawatts in northern or eastern Maine – oh, my god, try to build the transmission!” said Mills. “It’s not just the towers, it’s the lines – that’s when I begin to think that the goal is a little farfetched.” https://www.pinetreewatchdog.org/flaws-in-bill-like-skating-with-dull-skates/

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Hannah Pingree on the Maine expedited wind law

Hannah Pingree - Director of Maine's Office of Innovation and the Future

"Once the committee passed the wind energy bill on to the full House and Senate, lawmakers there didn’t even debate it. They passed it unanimously and with no discussion. House Majority Leader Hannah Pingree, a Democrat from North Haven, says legislators probably didn’t know how many turbines would be constructed in Maine."

https://pinetreewatch.org/wind-power-bandwagon-hits-bumps-in-the-road-3/

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