The Department of Energy’s Office of Inspector General will audit the Trump-era cancellation of nearly $8 billion in climate and clean-energy grants at the request of Democratic lawmakers. Acting Inspector General Sarah Nelson said the review will examine whether the department followed established procedures when rescinding awards. The cancellations affected 223 projects (about $7.6 billion), including major hydrogen hubs in California and the Pacific Northwest. Critics, including Sen. Adam Schiff, have called the cuts politically motivated after a White House official publicly listed states targeted for the reductions.
DOE Inspector General to Audit Nearly $8 Billion in Canceled Climate Grants After Democrats’ Request
The Department of Energy’s Office of Inspector General will audit a Trump-era decision to cancel nearly $8 billion in climate and clean-energy grants after Democratic lawmakers requested a review of the move.
Acting Inspector General Sarah Nelson confirmed the audit will examine the department’s processes for cancelling financial assistance and whether those cancellations followed established criteria. Nelson’s letter — released by Democrats — makes clear that opening an audit does not itself determine wrongdoing.
What the Audit Will Cover
The audit will review the Department of Energy’s decision-making process for rescinding awards and whether those actions complied with internal rules and criteria. Lawmakers asked the IG to examine whether political considerations played a role in selecting projects for cancellation.
"The Office of Inspector General recently announced an audit which will review the Department of Energy's processes when cancelling financial assistance and whether those cancellations were in accordance with established criteria," Nelson wrote.
Earlier this year the department cancelled awards to 223 projects totaling about $7.6 billion. Some of the largest cuts affected funding for hydrogen energy "hubs" in California and the Pacific Northwest — the Pacific Northwest hub included projects spanning Montana, Oregon and Washington.
Sen. Adam Schiff (D-Calif.): "I’m pleased to see that at our request, the Energy Department’s acting Inspector General is opening an investigation into this clear political targeting, which the Trump administration has openly admitted in court was intended to punish blue states."
The department’s announcement followed a post by Russell Vought, director of the White House Office of Management and Budget, on X, in which he said the administration was axing "nearly $8 billion in Green New Scam funding to fuel the Left's climate agenda" and listed states facing cuts, including California, Colorado, Connecticut, Delaware, Hawaii, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Vermont and Washington.
The IG audit will seek documentation and rationale behind the cancellations; its findings could clarify whether the department followed proper procedures or whether further congressional or legal actions are warranted. The Energy Department did not immediately provide additional comment to news outlets.
