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CCUS

Trump Mulls Cutting Billions In Funds From List Of Clean Energy Projects

Published by Todd Bush on October 8, 2025

Summary

  • Possibly on chopping block: GM EV plant funding in Lansing, Michigan
  • Stellantis Illinois electric truck plant also potential target
  • Blue Bird electric school bus plant could also get funds cut

WASHINGTON, Oct 7 (Reuters) - The U.S. government is considering cancelling billions of dollars in funding for clean energy programs, including awards for auto manufacturing and carbon capture, according to a list of targeted projects seen by Reuters.

Projects on the list include two major direct air capture hubs that received billion-dollar awards from former President Joe Biden's administration, including one that involves oil company Occidental.

Semafor reported the list earlier and said it could impact $12 billion in projects.

>> In Other News: $50 Billion Clean Energy Wave Transforms North America

Also on the list is $500 million awarded last year to General Motors to convert its Lansing Grand River Assembly Plant in Michigan to EVs; $335 million for Stellantis to convert the shuttered Belvidere Assembly plant in Illinois to build mid-size electric trucks; and $250 million for Stellantis to convert its Indiana Transmission Plant in Kokomo to produce EV components.

Last week, the Department of Energy announced plans to cancel $7.56 billion in financing for hundreds of energy projects it said would not provide sufficient returns to taxpayers.

The Energy Department is also considering rescinding a $32 million award to Hyundai Mobis which operates a Stellantis supplier in Ohio to produce plug-in hybrid components and battery packs and $89 million for Harley-Davidson to expand its York, Pennsylvania plant for EV motorcycle manufacturing.

Also on the list is a $80 million award for Blue Bird to convert a former Georgia plant to build electric school buses; and $75 million to engine company Cummins to convert part of an existing Indiana plant to make zero-emission components and electric powertrain systems.

The DOE also is considering cutting $208 million for the Volvo Group to upgrade plants in Maryland, Virginia and Pennsylvania to increase EV production capacity.

The Energy Department said in a statement it "continues to conduct an individualized and thorough review of financial awards made by the previous administration. No determinations have been made other than what has been previously announced."

Occidental, GM, Harley-Davidson and Stellantis declined or did not immediately comment.

The total sum of the grants in question was uncertain. The list included some projects that DOE said in May it canceled.

The previous cancellations included $331 million at an olefins plant carbon reduction at ExxonMobil Baytown, Texas refinery; $500 million to Heidelberg Materials US in Louisiana; and $375 million to Eastman Chemical Company in Texas.

White House budget director Russell Vought said in a post on X last week that the administration would terminate nearly $8 billion in climate-related funding in 16 Democratic-led states, including California and New York.

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