The Trump administration has announced sweeping cuts to clean energy programs and frozen billions of dollars in federal funding for major New York infrastructure projects, escalating a bitter standoff with Democrats over the ongoing U.S. government shutdown.
The Department of Energy (DOE) said Thursday it would terminate 321 financial awards tied to 223 projects, citing an estimated savings of $7.56 billion for taxpayers. The projects — overseen by the Office of Clean Energy Demonstrations, the Office of Energy Efficiency and Renewable Energy, and other agencies — were deemed by the administration as failing to adequately advance U.S. energy needs or generate sufficient returns on taxpayer investment.
Funding recipients have 30 days to appeal, and some have already begun the process, according to DOE officials.
On social media platform X, Office of Management and Budget Director Russell Vought defended the cuts, dismissing the affected initiatives as “Green New Scam funding” designed to further “the Left’s climate agenda.” States impacted include California, New York, and 14 others, many of which Trump lost in the 2024 presidential election.
States Push Back
California Governor Gavin Newsom said the decision would cancel up to $1.2 billion in funding for a major hydrogen energy project, warning of tens of thousands of threatened jobs.
“In Trump’s America, energy policy is set by the highest bidder, economics and common sense be damned,” Newsom said, pledging to continue pursuing California’s clean energy goals despite federal opposition.
In New York, the Department of Transportation (USDOT) confirmed it had frozen nearly $18 billion in funding for two critical infrastructure projects: the Second Avenue Subway expansion and the Hudson Tunnel.
The USDOT statement argued that subsidies tied to “race- and sex-based contracting requirements” were unconstitutional and a misuse of federal funds. The department said the freeze would remain in place until a review is completed, though it added that the government shutdown had furloughed the civil rights staff responsible for the evaluation.
“Thanks to the Chuck Schumer and Hakeem Jeffries shutdown, USDOT’s review of New York’s unconstitutional practices will take more time,” the statement read.
Governor Kathy Hochul condemned the move as “political payback and an attack on New York.”
“Donald Trump has been clear: he is intent on using his reckless government shutdown to hurt the American people,” Hochul said.
Political Context
The shutdown, which began after midnight Tuesday, has fueled clashes between the White House and Democrats in Congress. President Trump has framed the crisis as the fault of Democratic leaders, while simultaneously accelerating a slate of hard-right policies, including agency downsizing and threats of mass firings.
Observers say the cuts to clean energy and infrastructure signal Trump’s strategy of targeting Democratic strongholds while leveraging the shutdown to push his policy agenda.
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