Miles SmithThe Trump administration halted spending, loans and other actions and activities previously planned by the Department of Energy (DOE). Following the Department of Government Efficiency’s (DOGE) realignment of federal agencies, the administration has extended funding freezes to energy and manufacturing supply chain projects. This DOE freeze affected grants, loans and other activities related to clean energy, leading to significant disruptions in the clean energy sector.
Now, the agency plans to audit approximately $15 billion in grants allocated to power grid projects and manufacturing supply chain initiatives. Awarded prior to 2025, these projects are related to billions of dollars in grants from the offices of grid deployment and manufacturing and energy supply chains.
The DOE will review existing materials, including information companies had previously submitted in award applications. The agency may also request additional information from awarded companies.. If the projects do not meet new DOE standards or align with the new administration’s priorities, the department may modify or terminate the project as allowed by law. The department announced it has begun requesting additional information to review the awards and is prioritizing large-scale commercial projects.
The audit is in its initial phase and may extend to other DOE program offices.
Several court rulings have challenged these funding freezes, but, to date, the administration has continued to mandate the funding holds. Ultimately, the Supreme Court may be required to rule on these latest actions.
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