The U.S. Department of Energy (DOE) has canceled 321 financial awards valued at roughly $7.56 billion, following an internal review that found the projects did not meet national energy or economic standards, according to an Oct. 2 news release.
The decision impacts 223 projects across the country, many of which were approved during the final months of the Biden administration. DOE officials said the cancellations were made after a “case-by-case” review of projects under clean energy and manufacturing programs.
Democratic lawmakers, however, criticized the move as politically motivated, emphasizing that 108 Democratic districts were affected compared to 28 Republican House districts. They warned the cancellations could hinder the nation’s energy transition and raise consumer energy prices.
The DOE said the terminated awards failed to “adequately advance the nation’s energy needs and would not provide a positive return on investment of taxpayer dollars.” The decision follows a May policy update tightening financial review standards across several DOE divisions, including the Offices of Clean Energy Demonstrations, Energy Efficiency and Renewable Energy, Grid Deployment, and Manufacturing and Energy Supply Chains.
Recipients now have 30 days to appeal the termination decisions.
The cancellations mark a new phase of heightened federal oversight over publicly funded energy initiatives. Industry observers warn the move could further strain clean energy contractors already facing uncertainty due to recent federal and judicial actions.
In April, for instance, the Trump administration halted construction on Equinor’s 810-megawatt Empire Wind 1 project off the coast of New York, a stoppage that cost developers nearly $50 million per week until the order was lifted in early October.
Likewise, Ørsted’s 700-megawatt Revolution Wind project in Rhode Island was forced to secure a court injunction in September to resume operations following a separate stop-work order.
“The growing pattern of cancellations, pauses, and federal reviews has created a climate of uncertainty that’s chilling new investment in clean energy construction,” said one contractor familiar with the projects.
Adding to the pressure, the ongoing government shutdown has delayed multiple federal disbursements, leaving project owners and contractors unsure whether to proceed or halt development entirely.
While the DOE maintains the cuts are part of a necessary fiscal tightening, many industry leaders and state officials see it as a setback for the clean energy transition—particularly in states with large renewable manufacturing bases.
The DOE’s decision underscores a broader political divide over the future of U.S. energy policy. With billions in clean energy investments now in limbo, both local economies and contractors face significant disruption.
“We need consistent policy, not political whiplash,” one renewable energy advocate said. “Every time projects are canceled or delayed, it puts thousands of jobs and billions in investment at risk.”
A full list of the 321 terminated projects has been made publicly available by the DOE.
Originally reported by Sebastian Obando in Construction Dive.
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