ISLAMABAD (Report)
The Trump administration has announced plans to terminate dozens of clean energy projects and freeze billions of dollars for major projects in New York, intensifying a stand-off with Democrats over a United States government shutdown. US media outlets described the moves as part of the administration’s efforts to pressure Democrats in Congress to agree on a deal to end the shutdown.
Clean Energy Projects Terminated
- Department of Energy (DOE): The DOE announced on Thursday “the termination of 321 financial awards supporting 223 projects,” claiming a savings of approximately $7.56 billion for American taxpayers.
- Rationale for Cancellation: The department stated those projects “did not adequately advance the nation’s energy needs” and “would not provide a positive return on investment of taxpayer dollars.” Russell Vought of the Office of Management and Budget called the slashed projects “Green New Scam funding” used to advance “the Left’s climate agenda.”
- Political Implications: The decision affected 17 states, including California and New York—all identified as “blue states where Trump failed to win in the 2024 presidential elections.”
- California’s Response: California Governor Gavin Newsom stated the administration had canceled “up to $1.2 billion” slated for a major hydrogen energy project, which he claimed threatens tens of thousands of jobs.
Infrastructure Funds Frozen in New York
- Department of Transportation (USDOT): The USDOT announced on Wednesday it was freezing nearly $18 billion in federal funding for two major New York infrastructure projects: the Second Avenue subway and Hudson Tunnel.
- Rationale for Freeze: The move targets Diversity, Equity, and Inclusion (DEI) policies, with the department stating that subsidizing projects with “race- and sex-based contracting requirements” is “unconstitutional, counter to civil rights laws, and a waste of taxpayer resources.”
- Shutdown Context: The funds are frozen until a “quick administrative review is complete.” However, the USDOT blamed the shutdown (which it attributed to Democrats) for delaying this review by forcing the furlough of the civil rights staff responsible for conducting it, thereby slowing down the New York review.
- New York’s Response: New York Governor Kathy Hochul, a Democrat, condemned the halting of funding for “critical infrastructure projects” as “political payback and an attack on New York.”
