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Billions In “Green New Scam” Projects Canceled Amid Government Shutdown
The Trump administration said it will cut billions in climate projects amid the federal government shutdown.
“Nearly $8 billion in Green New Scam funding to fuel the Left’s climate agenda is being cancelled,” Office of Management and Budget (OMB) Director Russ Vought said.
“The projects are in the following states: CA, CO, CT, DE, HI, IL, MD, MA, MN, NH, NJ, NM, NY, OR, VT, WA,” he added.
Nearly $8 billion in Green New Scam funding to fuel the Left's climate agenda is being cancelled. More info to come from @ENERGY.
The projects are in the following states: CA, CO, CT, DE, HI, IL, MD, MA, MN, NH, NJ, NM, NY, OR, VT, WA
— Russ Vought (@russvought) October 1, 2025
All the impacted states, except New Hampshire and Vermont, are led by Democrat governors.
CBS News shared additional details:
The announcement on the climate-related projects comes on the heels of the administration’s move to pause roughly $18 billion in infrastructure projects in New York City. Vought said the initiatives — specifically for the Hudson Tunnel and Second Avenue Subway — were put on hold “to ensure funding is not flowing based on unconstitutional DEI principles,” a reference to diversity, equity and inclusion policies.
The Department of Transportation said it issued letters informing New York officials that the projects were under administrative review “to determine whether any unconstitutional practices are occurring,” and said that examination “will take more time” because of the shutdown.
“Without a budget, the Department has been forced to furlough the civil rights staff responsible for conducting this review,” the Transportation Department said in a statement.
“The U.S. Department of Energy (DOE) today announced the termination of 321 financial awards supporting 223 projects, resulting in a savings of approximately $7.56 billion dollars for American taxpayers,” the U.S. Department of Energy stated.
“Following a thorough, individualized financial review, DOE determined that these projects did not adequately advance the nation’s energy needs, were not economically viable, and would not provide a positive return on investment of taxpayer dollars,” it continued.
“President Trump promised to protect taxpayer dollars and expand America’s supply of affordable, reliable, and secure energy. These cancellations deliver on that commitment,” Secretary of Energy Chris Wright said.
President Trump promised to protect taxpayer dollars and expand America’s supply of affordable, reliable, and secure energy.
These cancellations deliver on that commitment.https://t.co/pPfXN7GdEQ
— Secretary Chris Wright (@SecretaryWright) October 2, 2025
More from the Los Angeles Times:
California officials said the state’s hydrogen hub, the Alliance for Renewable Clean Hydrogen Energy Systems, or ARCHES, was among the cuts. The hub had received $1.2 billion in federal grant funding from the Biden administration as part of a competitive nationwide effort to develop hydrogen projects that can replace planet-warming fossil fuels.
The announcement came only days after the Energy Department said it was ramping up the production of fossil fuels, including opening 13 million acres of federal lands for coal mining and providing $625 million to recommission or modernize coal-fired power plants.
“In Trump’s America, energy policy is set by the highest bidder, economics and common sense be damned,” Gov. Gavin Newsom said in a statement. “Clean hydrogen deserves to be part of California’s energy future — creating hundreds of thousands of new jobs and saving billions in health costs. We’ll continue to pursue an all-of-the above clean energy strategy that powers our future and cleans the air, no matter what D.C. tries to dictate.”