Trump administration launches sweeping audit of $15 billion in green energy grants as recipients like Cleveland-Cliffs announce layoffs, raising serious questions about whether Biden-era environmental investments created sustainable jobs or merely wasted taxpayer dollars.
Key Takeaways
- Energy Secretary Christopher Wright is reviewing 179 green energy grant recipients that received a total of $15 billion under the Biden administration
- Major corporations including ExxonMobil, BASF, and Cleveland-Cliffs are among those facing scrutiny
- Recent layoffs at grant-receiving companies have raised concerns about the economic viability of these subsidized green projects
- The review aligns with Trump’s broader agenda of cutting wasteful government spending and ensuring accountability
- This initiative represents a significant policy reversal from the previous administration’s climate agenda
Sweeping Review of Biden-Era Green Energy Spending
The Trump administration has intensified its examination of more than $15 billion in government grants and support originally awarded by the Biden administration for green energy initiatives. Energy Secretary Christopher Wright is leading a comprehensive review of 179 funding recipients, including major corporations such as ExxonMobil, BASF, Eastman Chemical, Cleveland-Cliffs, and Orsted. The review focuses on determining whether these projects deliver viable, sustainable jobs and economic benefits that justify the massive taxpayer investment.
“President Donald Trump’s administration is deepening its review of more than $15 billion in grants and other support awarded by its predecessor for upgrading power grids and manufacturing energy technology,” according to Bloomberg News.
This scrutiny comes as part of President Trump’s broader effort to ensure federal spending aligns with national interests and priorities. The review could potentially lead to significant rollbacks or modifications to these grants, particularly for projects that fail to demonstrate clear economic benefits and job sustainability. The administration’s approach reflects its commitment to fiscal responsibility and skepticism toward green energy subsidies that were a cornerstone of Biden’s climate agenda.
Corporate Recipients Face Uncertainty
Companies that received substantial funding are now responding to the administration’s review with varying degrees of concern. Some major grant recipients have begun preparing for potential changes to their funding status. BASF, which entered into a cooperative agreement with the Department of Energy for a low-carbon syngas project in Freeport, Texas, has acknowledged the ongoing review but maintains they are still in the initial planning phase of their project.
“What we can share is that, as of October 2024, BASF has entered into a cooperative agreement with the DOE for our proposed low-carbon syngas project at our Freeport, Texas site. With this, we have started Phase 1 of our project: initial planning and analysis. Throughout the entire process BASF will collaborate with the DOE to develop the appropriate deliverables necessary to progress to the following phases,” said Julia Arns, a BASF representative.
Similarly, Orsted representatives have indicated they are aware of the review but have not experienced changes to their funding at this time. “The DOE award is proceeding to schedule as we continue to develop the project. We’re aware that the program is currently under review, but there have been no changes to the award for Project Star at this time,” said Jakob Goetzsche Vesterager, an Orsted spokesperson.
Jobs and Economic Viability Under Scrutiny
The administration’s concerns about these green energy investments have been amplified by recent developments at several grant recipients. Cleveland-Cliffs, which received substantial funding, has announced layoffs, raising questions about whether these subsidized projects create lasting employment opportunities. These job losses have become a focal point in the debate over the economic wisdom of large-scale government subsidies for green energy initiatives.
“The Biden administration spent money we didn’t have to pay for things we didn’t need,” said James Carter, a economic policy expert.
The review aligns with President Trump’s broader agenda of reducing government waste and bureaucracy. Throughout his administration, Trump has issued multiple executive orders targeting federal spending, including Executive Order 14222, which specifically addressed discretionary spending through federal contracts and grants. The administration has consistently emphasized the importance of ensuring that government expenditures deliver concrete benefits to American citizens.
Part of Broader Government Reform
This green energy grant review is just one component of a comprehensive approach to government reform under the Trump administration. Since taking office, President Trump has issued numerous executive orders aimed at increasing efficiency, reducing bureaucracy, and ensuring accountability across federal agencies. Executive Order 14215, for instance, directed efforts to “ensure accountability for all federal agencies,” while Executive Order 14211 focused on reducing the federal workforce and implementing new hiring practices.
“continues the reduction in the elements of the Federal bureaucracy that the President has determined are unnecessary,” stated President Trump in one of his executive orders.
The administration’s approach to these green energy grants reflects a fundamental shift in environmental and energy policy compared to the previous administration. Rather than prioritizing climate-focused investments regardless of cost, the Trump administration is applying rigorous economic scrutiny to determine whether these projects deliver real value to American taxpayers and workers. This represents a return to energy policies that prioritize economic viability and practical outcomes over ideological commitments to green energy transition.
