President Donald Trump arrives to address the 2025 Republican Issues Conference at the Trump National Doral Miami in Doral, Florida on Jan. 27, 2025. Joe Raedle / Getty Images
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The Trump administration has halted spending from the United States Department of Energy (DOE)’s approximately $50 billion budget while a “comprehensive review” is conducted to ensure its spending and other actions — which include funding for new energy technologies — are in alignment with the priorities of President Donald Trump, according to an agency memo seen by Bloomberg.
The January 20 memo froze funding opportunities such as loans and the awarding of grants, as well as activities like the publication of rules and studies, until they are approved by Acting Secretary of Energy Ingrid Kolb.
Trump has said he will end spending on climate-friendly policies that he regards as wasteful, while supporting the fossil fuel industry.
“Effective immediately and until further notice, prior to any actions or decisions on all herein described activities, a review under varying criteria will be undertaken to ensure all such actions are consistent with current Administration policies and priorities including budgetary priorities,” the memo said, as Bloomberg reported.
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The freeze is an effort to dismantle Biden-era climate policies, reported Oil Price. DOE’s Loan Programs Office is in charge of $42.1 billion in conditional energy technology commitments that have now been paused.
The memo also halted the cleanup of nuclear waste from Cold War bomb development, the maintenance of emergency crude oil reserves and the study of supercomputers.
The order is similar to an earlier Trump freeze on funds associated with former President Joe Biden’s Inflation Reduction Act and Bipartisan Infrastructure Law, both of which provided billions in clean energy initiatives.
The U.S. Department of the Interior also issued a pause on federal leases for solar and wind projects.
Critics argue that the “drill, baby drill” halt of innovative technology investments will jeopardize the country’s long-term energy security.
“Donald Trump has been president for less than a week, and he has already repeatedly broken his promises to cut costs, create jobs, and help the American people. The Department of Energy’s funds were specifically targeted towards helping utilities reduce costs to customers, while making their electricity systems more resilient and robust. This funding is not only saving Americans money on their energy bills, it has created hundreds of thousands of jobs across the country,” said Executive Director of Sierra Club Ben Jealous in response to the announcement, in a press release from Sierra Club.
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DOE Loan Programs Office-funded projects have created over 47,000 permanent jobs while generating nearly 128 million megawatt-hours of green electricity. They have produced tens of billions in project investments all over the country. Loans from DOE have included funding for battery factories and deployment, electric vehicles and the distribution of solar.
“Trump’s rash actions to halt all Department of Energy funding will directly harm ratepayers in states like Utah, Wyoming, Arizona, Michigan, and Wisconsin, and jeopardize the hundreds of thousands of good clean energy and manufacturing jobs created over the last four years. Donald Trump might think about his promises to the people,” Jealous added.
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