DOE Cancels $83.6 Billion in Biden-Era Clean Energy Loans
The Department of Energy said on Thursday that it is canceling $83.6 billion in Biden-era loans that were supposed to go to sustainable energy projects. This is the most recent thing the Trump administration has done to change the order of government funding for fossil fuel sources.
$9.5 billion of the impacted loans were initially given to solar and wind projects. Now, the same money is being used for natural gas and nuclear projects.
The Biden administration’s Loan Programs Office gave out these loans. The Office of Energy Dominance Financing (EDF) is now in charge of them. According to a press statement from the Department of Energy, the Trump administration has taken back $29.9 billion of the $83.6 billion that was given to renewable energy projects and is seeking to “de-obligate” the rest.
Secretary Chris Wright stated,
“The energy department has looked at each of our loans over the past year to make sure that taxpayer money is being spent wisely.”
“We saw more money leave the Loan Programs Office in the last few months of the Biden administration than in the previous 15 years.”
Solar Industry Pushes Back on Fossil Fuel Pivot
President Trump said he will preserve taxpayers’ money and increase the amount of cheap, dependable, and secure energy in the US. The Working Families Tax Cut has made it possible for the newly restructured Energy Dominance Financing to play a big part in reaching that goal.
The EDF has set aside $289 billion for its new energy and infrastructure priorities. This includes investment in fossil fuels like coal, oil, and gas, as well as geothermal and nuclear power and the exploitation of vital minerals. The Trump administration sees these power sources as a way to meet the expanding energy needs of AI data centers. However, the Solar Energy Industries Association, which is the biggest lobbying organization for solar energy in the U.S., says that solar energy is a speedier way to meet that need.
For more than two years now, utility-scale solar energy deployment has always been faster than fossil fuel sources. According to research from the SUN DAY Campaign, solar PV has become the greatest source of renewable energy on the U.S. grid, even without including rooftop installations.
