The Trump administration cancelled more than $7.5 billion in federal grants for clean energy projects in October "based solely" on political considerations, according to court documents cited by the New York Times.
The grants were withdrawn in October after the administration said it was acting to protect taxpayers from wasteful spending. However, government lawyers later said the Department of Energy had not relied on programme performance, statutory requirements, cost reductions or other policy-related factors when deciding which grants to include in the cancellation notice.
According to the filing, the grants were selected on the basis of “the political identity of the grant recipient's state”, including whether the project was located or due to be carried out in a Democratic-leaning state.
The affected projects were largely in states represented by Democrats and won by Kamala Harris, the Democratic presidential nominee, in the 2024 election.
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The Department of Energy has disputed the interpretation of the filing. A spokesperson said the decisions themselves were not politically motivated and claimed the reference to political considerations related only to the timing of the announcement, The Guardian reported.
The court documents stem from a lawsuit filed by six University of California academics and other researchers challenging the cancellation of Biden-era grants by several federal agencies. The plaintiffs have described the terminations as part of a political cost-cutting programme and an ideological campaign by the administration.
The dispute comes as the White House seeks greater control over the distribution of federal grants. Under a proposed rule published on May 29, political appointees would be given a larger role in reviewing awards and could block or withdraw funding that does not align with the president's priorities.
The proposed regulation states that discretionary grants should, where applicable, “demonstrably advance the President's policy priorities”, The Guardian reported.
Critics say the changes could make it easier for the administration to withhold funding authorised by Congress on political or ideological grounds.
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