WASHINGTON, Oct. 7 — The U.S. government is reviewing billions of dollars in funding for clean energy policy, including grants for electric vehicle (EV) manufacturing and carbon capture projects, according to documents reviewed by Reuters.
Review focuses on prior awards
The review could affect projects initiated during President Joe Biden’s administration. The Department of Energy (DOE) said it is conducting an “individualized and thorough review of financial awards” and that no additional determinations have been made beyond previously announced actions.
Among the projects under review are two direct air capture hubs that received billion-dollar grants, including one involving oil producer Occidental Petroleum. Other grants include $500 million to General Motors for converting its Lansing Grand River Assembly Plant in Michigan for EV production, and $335 million to Stellantis to reopen the Belvidere Assembly Plant in Illinois to manufacture mid-size electric trucks.
Stellantis’ $250 million award to convert its Indiana Transmission Plant in Kokomo for EV components is also listed.
Other companies affected
Additional projects under review include grants to Harley-Davidson, Hyundai Mobis, Blue Bird, Cummins, and Volvo Group, covering facilities across Pennsylvania, Ohio, Indiana, Maryland, Virginia, and Georgia.
Specific grants under review include $32 million to Hyundai Mobis, $89 million to Harley-Davidson for its York, Pennsylvania facility, $80 million to Blue Bird for a Georgia plant conversion to electric school buses, $75 million to Cummins for zero-emission powertrain components, and $208 million to Volvo Group for plant upgrades to increase EV production capacity.
Some projects had previously been canceled, including $331 million for ExxonMobil’s Baytown, Texas carbon reduction project; $500 million for Heidelberg Materials in Louisiana; and $375 million for Eastman Chemical Company in Texas.
Official statements and responses
Automakers and companies named in the review, including GM, Harley-Davidson, Stellantis, and Occidental, declined or did not immediately respond to requests for comment.
White House budget director Russell Vought said last week in a post on X that the administration plans to terminate nearly $8 billion in climate-related funding in 16 Democratic-led states, including California and New York.
Industry analysts said the review may affect timelines for certain manufacturing projects and could have implications for job creation linked to federal grants. The DOE emphasized that the review focuses on financial efficiency and compliance with federal guidelines, while acknowledging that project delays could be an outcome of the process.
Implications for federal clean energy policy
These developments represent a potential policy change in federal clean energy policy. Officials cited fiscal review and efficiency considerations as the primary reasons for revisiting prior awards.
The future of these projects remains under review as the administration continues to examine the grants.
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