Trump Administration Mulls Additional $12 Billion Clean Energy Funding Cut

(Reuters) – The U.S. government is considering cancelling an additional $12 billion in clean energy funding, including awards for auto manufacturing and carbon capture, according to a list of targeted projects seen by Reuters. The projects on the list include two major direct air capture hubs that received billion-dollar awards from the administration of former President Joe Biden, including one that involves oil company Occidental.

Also on the list is $500 million awarded last year to General Motors to convert its Lansing Grand River Assembly Plant in Michigan to EVs, $335 million for Stellantis to convert the shuttered Belvidere Assembly plant in Illinois to build mid-size electric trucks, and $250 million for Stellantis to convert its Indiana Transmission Plant in Kokomo to produce EV components.

The possible new cancellations come a week after the Department of Energy announced plans to cancel $7.56 billion in financing for hundreds of energy projects that it said would not provide sufficient returns to taxpayers. DOE officials were not immediately available for comment.

Occidental, GM and Stellantis did not immediately respond to requests for comment.

White House budget director Russell Vought said in a post on X last week that the administration would terminate nearly $8 billion in climate-related funding in 16 Democratic-led states, including California and New York.

Reporting by Valerie Volcovici in Washington, additional reporting by Chandni Shah in Bengaluru, Nichola Groom in Los Angeles and David Shepardson in Washington; Editing by Chris Reese and Nia Williams

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