Washington (TDI): The Trump administration has moved to cancel hundreds of clean energy initiatives and suspend billions of dollars earmarked for major projects in New York, escalating its standoff with Democrats over the ongoing government shutdown.
Announcements from the Departments of Energy and Transportation this week outlined sweeping terminations and funding freezes. US media outlets framed the decisions as part of the White House strategy to pressure congressional Democrats into striking a deal to reopen the government.
The Department of Energy said on Thursday it would terminate 321 financial awards supporting 223 projects, citing an estimated $7.56 billion in “savings for American taxpayers.” The cancelled projects, overseen by agencies such as the Office of Clean Energy Demonstrations and the Office of Energy Efficiency and Renewable Energy, were described as failing to advance national energy needs or deliver a return on investment.
Funding recipients have 30 days to appeal, and some have already begun the process. The DOE did not publish a full list of affected projects.
Russell Vought, head of the Office of Management and Budget, defended the move in a post on X, calling the targeted programs “Green New Scam funding” designed to promote “the Left’s climate agenda.” He noted that most of the cuts would hit Democratic-leaning states, including California and New York.
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California Governor Gavin Newsom blasted the decision, saying it jeopardized up to $1.2 billion for a hydrogen energy project and “tens of thousands of jobs.” He accused the administration of allowing energy policy to be dictated by political ideology rather than economics.
In New York, the Department of Transportation said it was freezing nearly $18 billion in funding for the Second Avenue subway and Hudson Tunnel projects. A department statement argued that contracting requirements tied to diversity and equity policies were unconstitutional and a misuse of federal resources. The funding halt, it added, would last until an administrative review was completed.
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Governor Kathy Hochul called the freeze “political payback and an attack on New York,” while Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries also condemned the move.
