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Trump Administration Cancels $7.5 B in Biden-Era Clean-Energy Grants, Targeting Democratic States

7/25/2026, 1:28:43 AM

Core Event

In October, the Trump administration terminated more than $7.5 billion in federal grants that had been allocated under the Biden administration for clean-energy projects. Court filings released this month reveal that the cancellations were “based solely” on political criteria, focusing on states represented by Democrats and that voted for Kamala Harris in the 2024 presidential election. The grants spanned education, energy, health, housing and infrastructure programs, and their removal was framed by the White House as a correction of wasteful spending.

Official Statements & Responses

White House budget director Russell Vought defended the cuts, describing the affected programs as part of a “Green New Scam” and asserting that the administration was merely trimming wasteful Biden-era spending. In a later court filing, the administration’s lawyers argued that it is “constitutionally permissible” to consider partisan politics when allocating federal funds. The White House and the Energy Department declined to comment on the specific allegations.

Criticism & Opposition

Devin O’Connor, a senior fellow at the Center on Budget and Policy Priorities, warned that the episode demonstrates an extreme willingness to politicize grant-making. He said the risk of such behavior “is not a hypothetical.” “The risk that the Trump administration is willing to go to extreme lengths to politicize grant-making is not a hypothetical,” — Devin O’Connor “If they are willing to be that blatant about it,” — Mr. O’Connor

Verbatim Quotes

  • “The risk that the Trump administration is willing to go to extreme lengths to politicize grant-making is not a hypothetical,” — Devin O’Connor, senior fellow, Center on Budget and Policy Priorities. “The risk that the Trump administration is willing to go to extreme lengths to politicize grant-making is not a hypothetical,” — Devin O’Connor
  • “If they are willing to be that blatant about it,” — Devin O’Connor, senior fellow, Center on Budget and Policy Priorities. “If they are willing to be that blatant about it,” — Mr. O’Connor