The US government may cancel billions of dollars in funding for clean energy projects, a move that could affect automakers, energy companies, and thousands of workers across several states.
A list seen by Reuters shows that the potential cuts include funding for General Motors, Stellantis, Harley-Davidson, and Volvo. The projects, meant to build or convert factories for electric vehicles and clean energy technology, were part of the Biden administration’s drive to cut emissions and grow green jobs.
Among the targeted projects are a $500 million grant to GM to turn its Lansing Grand River Plant in Michigan into an electric vehicle hub, and $335 million for Stellantis to reopen its Belvidere, Illinois, plant for electric truck production.
The Energy Department (DOE) is also reviewing $250 million for Stellantis’ Indiana Transmission Plant, $80 million for Blue Bird’s electric school bus plant in Georgia, and $75 million for Cummins to make zero-emission components in Indiana.
The DOE said in a statement it is “conducting a thorough review of all financial awards made by the previous administration” and that “no final decisions have been made.”
Industry groups and clean energy advocates warn that cancelling these grants could slow down America’s shift to cleaner technologies. “These projects mean real jobs and real progress,” said an auto industry analyst. “Pulling back now risks setting us back years.”
President Donald Trump’s team argues that the reviews are necessary to ensure taxpayer money delivers value. Last week, the DOE announced plans to cancel $7.56 billion in financing for projects it said would not bring enough returns to taxpayers.
In total, reports suggest that up to $12 billion in clean energy projects could be affected. The review could also impact carbon capture hubs backed by oil major Occidental and other partners.
The White House budget office earlier indicated that nearly $8 billion in climate-related funding could be withdrawn from 16 Democratic-led states, including California and New York.
While companies such as GM, Harley-Davidson, and Stellantis have not commented, workers in affected states say uncertainty is growing. “People are worried,” said a Michigan plant employee. “These funds were supposed to secure our future.”
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