The Trump administration announced the cancellation of nearly $8 billion in climate-related funding, calling it the “Green New Scam,” as part of measures during the federal government shutdown. Office of Management and Budget (OMB) Director Russ Vought stated the funds targeted projects in states including California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Vermont, and Washington. Most of these states are governed by Democratic leaders.
CBS News reported that the move follows a pause on approximately $18 billion in infrastructure projects in New York City, including the Hudson Tunnel and Second Avenue Subway. Vought cited concerns over “unconstitutional DEI principles” — a reference to diversity, equity, and inclusion policies — as the reason for the hold. The Department of Transportation said it had initiated reviews of these projects to assess potential constitutional violations but faced delays due to staffing shortages caused by the shutdown.
The U.S. Department of Energy (DOE) confirmed the termination of 321 financial awards supporting 223 projects, saving taxpayers an estimated $7.56 billion. A DOE statement claimed the projects failed to meet energy needs, lacked economic viability, and offered poor returns on investment. Secretary of Energy Chris Wright praised the cancellations as fulfilling President Trump’s pledge to prioritize taxpayer dollars and expand affordable energy production.
California’s hydrogen hub, ARCHES, which received $1.2 billion in federal funding under the Biden administration, was among the terminated initiatives. The state’s governor, Gavin Newsom, criticized the decision, asserting that clean hydrogen is critical for California’s energy future and job creation. He vowed to continue pursuing a “all-of-the-above” clean energy strategy despite federal actions.
The Energy Department also announced increased fossil fuel production, including opening 13 million acres of federal land for coal mining and allocating $625 million to modernize coal-fired power plants.
