Trump Administration Redirects $83 Billion From Green Energy to Fossil Fuels

The Donald Trump administration is reorienting U.S. energy policy by restructuring or eliminating $83.6 billion in loans and conditional commitments approved under the Biden administration. The U.S. Department of Energy is de-obligating nearly $30 billion and revising $53.6 billion, shifting funding away from wind and solar projects toward baseload power, including natural gas, nuclear power, and coal-fired facilities.

To facilitate this transition, the Department of Energy renamed its Loan Programs Office to the Office of Energy Dominance Financing (EDF). This new office manages nearly $290 billion in lending authority to prioritize hydrocarbon projects, critical minerals, and nuclear restarts. Early actions include funding a coal-powered fertilizer plant in Indiana and providing loans to restart nuclear plants in Pennsylvania and Michigan.

Energy Secretary Chris Wright characterized the previous portfolio as a "Green New Scam," asserting that $85 billion of the original $104 billion portfolio was rushed through in the final months of the Biden administration. This pivot follows an inspector general's report that identified potential conflicts of interest among 20% of officials at the former Loan Program Office. To further support these priorities, President Trump signed an executive order to reduce regulations on fossil fuel production and revoked drilling limits in Alaska's National Petroleum Reserve.