US DOE cancels 321 energy awards, saving $7.56 billion

The US Department of Energy (DOE) has terminated 321 financial awards linked to 223 projects, generating an estimated $7.56 billion in taxpayer savings. The decision follows a comprehensive review that found these projects did not meet national energy needs, lacked economic viability, and were unlikely to deliver a positive return on public funds.

The awards were issued by the Offices of Clean Energy Demonstrations, Energy Efficiency and Renewable Energy, Grid Deployment, Manufacturing and Energy Supply Chains, Advanced Research Projects Agency-Energy, and Fossil Energy. Around 26 per cent of these awards, valued at over $3.1 billion, were approved between Election Day and Inauguration Day.

In May 2025, the DOE issued a secretarial memorandum introducing a new evaluation policy requiring a case-by-case review of all financial awards. The process aimed to prevent waste, safeguard taxpayer money, and support national and energy security objectives. Awards failing to meet the criteria were discontinued.

Recipients have 30 days to contest the decisions, and several have already initiated appeals. The DOE review marks a significant effort to align funding with economic, energy, and security priorities.