The Trump administration announced the cancellation of $3.7 billion in grants for various climate-related infrastructure projects, primarily approved during the final period of former President Joe Biden’s administration following his 2024 election loss. Energy Secretary Chris Wright revealed on Friday that the 24 projects did not meet the energy needs of Americans, were not economically viable, and failed to provide a positive return on taxpayer investments.
After a comprehensive financial analysis, the Department of Energy determined that approximately 70% of the grants (16 out of 24 projects) had been signed between the election day on November 5 and Biden’s last day in office on January 20.
The rescinded grants primarily targeted projects focused on capturing carbon emissions for underground storage, as well as initiatives for cleaner cement and natural gas. This decision is part of President Trump’s efforts to reverse Biden’s climate and clean energy policies. Wright emphasized the administration’s commitment to ensuring taxpayer funds strengthen national security and support reliable energy sources.
Significant cuts include $332 million from a project at ExxonMobil’s Baytown, Texas refinery, $500 million to Heidelberg Materials in Louisiana, and $375 million to Eastman Chemical Company in Longview, Texas.
The technology, referred to as carbon capture and storage (CCS), aims to prevent carbon dioxide from entering the atmosphere or from pollution streams of industrial facilities. Despite climate change activists’ claims linking human-produced carbon emissions to global warming, President Trump has historically dismissed these views, criticizing progressive climate policies.
Environmental groups have expressed concern over the cuts. Steven Nadel, executive director of the American Council for an Energy-Efficient Economy, described the decision as short-sighted, warning it could hinder technological advancement. The Center for Climate and Energy Solutions estimated these cuts could lead to the loss of 25,000 jobs and a $4.6 billion reduction in economic output.
The review of the projects was part of the Energy Department’s effort to reduce waste, protect national security, and advance affordable energy goals. Wright also criticized the Biden administration’s regulatory measures, claiming they imposed excessive restrictions, and praised Trump’s executive orders promoting American energy.
The announcement coincided with discussions at the Reagan National Economic Forum, moderated by Fox News’ Maria Bartiromo, where the administration highlighted its focus on deregulation and energy development.
