Energy Secretary Chris Wright is pulling the plug on billions in wasteful Biden-era clean energy loans, according to The Daily Caller.
The Trump administration’s review of the Department of Energy’s Loan Programs Office (LPO) targets $400 billion in investments that critics say threaten taxpayer dollars and grid reliability. This bold move signals a return to energy policies prioritizing American workers and economic strength.
The LPO, established in 2005, was designed to bolster clean energy infrastructure. Under Biden, Congress injected $400 billion into the program to prop up green tech firms.
Wright’s announcement last Friday aims to halt most of these loans, citing concerns over mismanagement and market distortion.
Before leaving office, Biden allocated $25 billion to the LPO for renewable energy projects. The program’s history includes a $535 million loan to Solyndra under Obama, a green energy firm that collapsed within two years. Such failures fuel skepticism about the LPO’s effectiveness in picking winners.
A November inspector general report warned that the LPO’s rushed fund distribution lacks proper vetting, risking taxpayer losses. Critics argue that the focus on unreliable solar and wind undermines competition and innovation.
“LPO investing currently undermines competition and market innovation of energy technologies,” said Gabriella Hoffman, director at Independent Women’s Forum.
Hoffman told the Daily Caller News Foundation that the LPO has become a “clean energy slush fund,” dooming projects reliant on federal handouts.
Energy policy expert André Béliveau echoed this, stating, “If the government’s going to use my money as a taxpayer, that money should be going to investments that provide reliable power.” The push for subsidies often benefits industries unable to stand on their own, he added.
During Trump’s first term, LPO activity slowed, reflecting a cautious approach to federal energy investments. Biden’s administration, however, aggressively expanded the program, with 53 deals worth $107.57 billion announced days before Trump’s return.
These included $6.57 billion for an electric vehicle facility in Georgia and $289.7 million for solar and battery storage in Massachusetts.
Other Biden-era projects included $2.5 billion for EV technology and $1.45 billion for a solar manufacturing plant in Georgia. A $584.5 million loan supported a solar photovoltaic system with battery storage in Puerto Rico. These commitments, critics argue, prioritize ideology over grid stability.
The Inflation Reduction Act of 2022 boosted DOE’s loan authority by $290 billion. Initial estimates pegged the act’s tax credits at $400 billion, but Goldman Sachs later projected costs could hit $1 trillion over a decade. A Cato Institute report warned credits could balloon to $4.7 trillion by 2050, burdening taxpayers further.
Trump, on his first day back in office, declared a national energy emergency and signed an executive order to boost domestic energy production.
Within his first 100 days, additional orders streamlined permitting for coal and critical mineral mining. These actions align with his administration’s goal of energy dominance and economic revitalization.
Some right-of-center groups urged Wright on April 14 to preserve the LPO for its role in supporting nuclear power and modernizing grid systems. They noted its potential to enable “new nuclear power development” and revitalize domestic mineral production. Nuclear energy, unlike solar and wind, enjoys Trump administration support for its reliability.
Wright, addressing the LPO’s future, told Bloomberg, “Some of these loans will go forward, some of it, it’s too late to change course.” He emphasized a careful review process to determine which projects align with national interests. “We’ve got a lot of reasons to be worried and suspicious about that,” he added, referencing the program’s track record.
Amy Cooke, co-founder of Always on Energy Research, called for dramatic reform, questioning, “If the market isn’t interested in it, is it the responsibility of the Department of Energy to fund these projects?” She argued the program’s flaws justify its potential termination. Béliveau similarly stressed that reforms must ensure taxpayer dollars support reliable energy sources.
Myron Ebell, formerly of the Competitive Enterprise Institute, demanded an end to DOE’s loan authority, calling it corporate welfare for unviable companies.
“The special interests that line up for these handouts spend more effort on lobbying in D.C. than they do on innovating,” he told the Daily Caller News Foundation. He urged Congress to repeal green energy subsidies in the Inflation Reduction Act.
Marc Morano, author and Climate Depot executive editor, insisted that the entire program be shut down. “You can’t have the energy department picking winners and losers in the energy sector,” he told the Daily Caller News Foundation. Such interventions distort markets and burden hardworking Americans with higher costs.
The Trump administration’s actions reflect a broader commitment to restoring energy independence and protecting taxpayers. By slashing Biden’s green energy schemes, Wright aims to refocus the DOE on reliable, market-driven solutions. This shift promises to strengthen America’s grid and economy while rejecting woke, elitist energy policies.