The Trump administration has announced the termination of dozens of clean energy projects and frozen billions in funding for major New York infrastructure initiatives, escalating its standoff with Democrats over the ongoing government shutdown.
According to announcements from the Departments of Energy and Transportation, the decision will cut funding for hundreds of initiatives while pausing high-profile construction work. Officials described the moves as a strategy to pressure Democrats in Congress to negotiate an end to the funding impasse.
The Department of Energy stated it was terminating 321 financial awards across 223 projects, saving an estimated $7.56 billion for taxpayers. The targeted projects had been supported by the Office of Clean Energy Demonstrations, the Office of Energy Efficiency and Renewable Energy, and other agencies. The department claimed the projects “did not adequately advance the nation’s energy needs” and failed to justify taxpayer investment.
Recipients of federal funds have 30 days to appeal the termination decision, though no specific list of impacted projects has yet been released. Russell Vought, head of the Office of Management and Budget, defended the cuts in a post on X, calling them the elimination of “Green New Scam funding” used to push “the Left’s climate agenda.”
Newsom Slams Trump Admin Over Hydrogen Project Cancellation
California Governor Gavin Newsom criticized the administration after confirming the cancellation of up to $1.2 billion for a major hydrogen energy project, warning it could threaten tens of thousands of jobs. “In Trump’s America, energy policy is set by the highest bidder,” he said, promising California would continue to pursue clean energy regardless of federal actions.
In New York, home to Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries, the Department of Transportation announced a freeze on nearly $18 billion in federal funding for the Second Avenue subway expansion and the Hudson Tunnel. The department cited concerns over diversity, equity, and inclusion requirements, labeling them “unconstitutional” and “a waste of taxpayer resources.”
The freeze will remain in place pending an administrative review, though officials admitted the shutdown has forced furloughs that delay the process. “Thanks to the Schumer and Jeffries shutdown, this review will take more time,” the statement noted.
New York Governor Kathy Hochul denounced the funding halt as “political payback and an attack on New York.” She accused former President Trump of weaponizing the shutdown to harm the public, adding, “Donald Trump has been clear: he is intent on using his reckless government shutdown to hurt the American people.”