Energy Department cancels $7.6 billion in climate and clean-energy awards, including research grants (Oct. 2025)

Case

In early October 2025 the Energy Department announced it was terminating 321 awards for 223 projects worth about $7.6 billion, mostly clean-energy and climate-related, including a $326 million Colorado State University methane-emissions research grant. A CPR analysis of the project list found the terminations totaled about $5.8 billion, and the department's inspector general opened an audit in December 2025. The cuts fell mainly on states that voted for Kamala Harris in 2024.

The terminations (October 2025)
The Energy Department announced it would terminate 321 financial awards supporting 223 projects, worth nearly $7.6 billion, issued by six DOE offices covering clean energy, energy efficiency, grid deployment, advanced research, manufacturing and fossil energy.
DOE said the projects did not adequately advance the nation's energy needs, were not economically viable and would not provide a positive return for taxpayers. Recipients had 30 days to appeal.
DOE said 26% of the grants, valued at $3.1 billion, were awarded between Election Day and Inauguration Day in 2024-25. Energy Secretary Chris Wright said DOE began reviewing the awards on day one and that many were rushed through in the final months of the Biden administration with inadequate documentation.
Separately, DOE said in September 2025 that it intended to cancel more than $13 billion in unobligated funds previously pledged to renewable energy initiatives.

Research affected and what the numbers show
Colorado was set to lose about $550 million. The largest piece was a $326 million Colorado State University grant, announced in January 2025, to research methods to reduce methane emissions from oil and gas wells.
A Colorado Public Radio analysis of the project list found DOE terminated about $5.8 billion in awards rather than $7.56 billion, and that more than $1 billion of what was eliminated was for fossil-fuel research.
Some recipients told CPR their work supported the Trump administration's agenda, raising questions about how DOE chose which projects to cut. Colorado had 34 grants marked for termination, including grants to a CSU methane research group that runs the only test facility of its kind in the U.S.

Politics and oversight
OMB Director Russell Vought posted that the administration was cutting nearly $8 billion in "Green New Scam" funding, naming California, Colorado, Connecticut, Delaware, Hawaii, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Vermont and Washington.
The AP reported the terminations covered projects across 16 states that voted for Kamala Harris in 2024, with California hit hardest, including more than $1 billion for a hydrogen hub there. The largest cancellations included hydrogen hubs in California and the Pacific Northwest.
In December 2025 the Energy Department's inspector general's office announced an audit of whether the cancellations followed established criteria, which Democrats had requested.
Congress's fiscal 2026 report language protects Earth and environmental research within DOE's Office of Science.
Utility Dive reported that in a July 15, 2026 court filing DOE stated the cancellations were "based solely on the political identity of the grant recipient's state," with no programmatic, statutory, cost-reduction or performance-based consideration. The filing itself was not reviewed for this entry.

What the sources do not establish
The sources reviewed do not separate research awards from demonstration, grid and manufacturing projects, so a research-only total is not available.
As of Oct. 10, 2026, the sources reviewed do not include the inspector general's findings or the outcome of appeals and lawsuits over the terminations.

Perspectives

Official position — Energy Department and Secretary Chris Wright
DOE says that after a thorough, individualized financial review it determined the 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. Wright says many awards were rushed through in the final months of the Biden administration with inadequate documentation.

Critic — Recipients, regional officials and congressional Democrats
Recipients and officials say the projects were well underway, that the cuts threaten research, jobs and energy costs, and that the pattern fell on Democratic-led states. Some recipients told CPR their work supports the administration's own agenda.

Official position — Energy Department Office of Inspector General
The inspector general's office announced an audit that will review DOE's processes when canceling financial assistance and whether the cancellations were in accordance with established criteria.

Editorial read — The Author (site author)
The Author's view is that canceling research grants, such as work on measuring methane emissions, removes knowledge the country needs, and that choosing projects by the state they sit in, if the inspector general finds that happened, would be a politicized use of public money. This is interpretation. DOE says the projects were not viable, the AP describes cuts across 16 states that voted for Harris, and the audit's findings are not yet reported.

Research notes
Open leads: (1) The inspector general's audit findings; (2) outcome of appeals and lawsuits over the terminations; (3) DOE's separate plan, reported in September 2025, to cancel more than $13 billion in unobligated funds; (4) not all the awards were research: the list mixes demonstration, grid and manufacturing projects with research, so a research-only subtotal is not available; (5) a second round of cuts expected in October 2025 is not covered here.

Note
DOE first said the projects were not economically viable or aligned with energy needs, and that 26% of the grants by value were awarded between Election Day and Inauguration Day 2024-25. In a July 15, 2026 court filing, as reported by Utility Dive, DOE stated the cancellations were based solely on the political identity of the recipient's state. Recipients say many projects were underway and some supported the administration's own agenda, and the inspector general's audit is pending.

Sources
[1] Enerdata: The US DOE will cancel US$7.5bn in funding for clean energy projects (https://www.enerdata.net/publications/daily-energy-news/us-doe-will-cancel-us75bn-funding-clean-energy-projects.html) · 2025-10
[2] KUNC: Feds slash $550M in Colorado climate funds; regional officials rip the move (https://www.kunc.org/news/2025-10-06/feds-slash-550m-in-colorado-climate-funds-regional-officials-rip-the-move) · 2025-10-06
[3] Colorado Public Radio: The Department of Energy said it was saving taxpayers $7.56 billion. The actual amount is much less (https://www.cpr.org/2025/10/27/doe-funding-cuts-overstated-data-shows/) · 2025-10-27
[4] Associated Press (via CT Mirror): Energy Department watchdog will audit Trump's cuts of nearly $8B in clean energy grants (https://ctmirror.org/2025/12/18/energy-dept-watchdog-to-audit-trump-clean-energy-cuts/) · 2025-12-18
[5] The Hill (via AOL): Energy Department inspector general to probe billions in canceled climate grants mostly impacting blue states (https://www.aol.com/news/energy-department-inspector-general-probe-225634321.html) · 2025-12
[6] AGU The Bridge: Science Funding for FY26 Secured (https://thebridge.agu.org/2026/02/05/science-funding-for-fy26-secured/) · 2026-02-05
[7] Utility Dive: Backlash to Trump's vindictive grant cancellations at DOE (https://www.utilitydive.com/news/backlash-trumps-vindictive-grant-cancellations-doe-energy/826226/) · 2026-07

Connections

Same actor — DOE's secret 'Climate Working Group' built the case for repealing the Endangerment Finding
Both concern Energy Secretary Chris Wright's Energy Department: its award terminations and its commissioned climate report.

Same actor — Oil and gas insiders running the energy agencies: Wright, Burgum, and the appointee pipeline
Secretary Wright, a former fracking CEO, runs the department that terminated the awards; CPR found more than $1 billion of the eliminated funds was fossil-fuel research.

Related — Tilting the energy market to fossil fuels: clean-energy funding cuts and rising bills
Overlapping coverage: that entry covers clean-energy funding cuts and the fossil tilt more broadly; this one focuses on the October 2025 award terminations and the research they affected.