The U.S. Department of Energy has formally announced the cancellation of nearly $13 billion in federal funds earmarked under the Biden administration to accelerate renewable energy projects and electric vehicle (EV) deployment.

According to the department, the decision aims to return the funds to taxpayers, with officials citing the goal of ensuring a more affordable, reliable, and secure American energy system.

The move, however, has sparked widespread backlash. The funds had been slated to support wind, solar, battery storage, and EV manufacturing projects, sectors already seen as critical to the country’s clean energy transition. California Governor Gavin Newsom condemned the cancellation, warning that it represents not only a setback for U.S. climate ambitions but also a potential strategic gift to China in the global race for clean energy technology.

Industry groups echoed these concerns, highlighting the risk of significant job losses in one of the nation’s fastest-growing economic sectors. A recent report from environmental advocacy group E2 found that jobs in renewable energy, particularly in solar, wind, and related supply chains, expanded three times faster than the overall U.S. workforce in 2024.

The renewable energy industry has long relied on federal subsidies to attract private investment and scale new technologies. Analysts warn that withdrawing such a substantial sum could destabilize markets built around long-term capital planning, thereby undermining investor confidence.

At the national level, critics argue the decision could hinder U.S. decarbonization goals by reducing incentives for clean energy deployment, deepening the gap between state-led initiatives, corporate sustainability commitments, and shifting federal priorities. On the international stage, experts caution that the U.S. risks falling behind the European Union and China, both of which are pressing ahead with more ambitious clean energy investments.

Source: 

https://esgnews.com/us-plans-to-cancel-13-billion-in-clean-energy-funds/  

https://www.reuters.com/sustainability/climate-energy/us-intends-cancel-13-billion-funds-green-energy-2025-09-24/