In a move that has sent shockwaves through the nation’s clean energy sector, the Trump administration announced on October 1, 2025, the cancellation of $7.56 billion in federal funding for 223 green energy projects. The decision, revealed by the U.S. Department of Energy (DOE), affects a broad swath of projects across the United States, but its impact is especially acute in states like California and Washington, where ambitious clean hydrogen and alternative energy initiatives were set to receive major support.
The funding cuts, detailed in a DOE press release and confirmed by Office of Management and Budget Director Russell Vought, target projects in states that largely supported former Vice President Kamala Harris in the last election—California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Vermont, and Washington among them. However, the ax also fell on projects in states that voted for Trump, such as Tennessee, South Carolina, North Dakota, Iowa, and Florida, according to a breakdown released by congressional Democrats.
One of the most high-profile casualties is California’s hydrogen energy initiative, which was slated to receive up to $1.2 billion as part of a network of regional “hubs” funded by the Bipartisan Infrastructure Law. These hubs were designed to advance hydrogen energy, a technology many experts believe is key to decarbonizing heavy industry and transportation. The Pacific Northwest Hydrogen Hub, a collection of projects in Washington, eastern Oregon, and Montana, also saw more than $1 billion in federal funding evaporate overnight.
California Governor Gavin Newsom didn’t mince words in his response. “In Trump’s America, energy policy is set by the highest bidder, economics and common sense be damned. Clean hydrogen deserves to be part of California’s energy future — creating hundreds of thousands of new jobs and saving billions in health costs,” Newsom said in a written statement, warning that the move could threaten 200,000 jobs in his state alone. His office emphasized the potential economic and health benefits at stake, while also positioning Newsom as a likely 2028 presidential contender.
The impact in Washington has been just as dramatic. Atlas Agro, a Swiss company planning to build a $1.3 billion fertilizer plant near the Pacific Northwest National Laboratory in Richland, lost $157.3 million in expected federal support. The plant, which had already secured a $9 million land deal and $20 million in city property tax breaks, was expected to employ 158 permanent workers and hundreds more during construction. The project was celebrated as the largest economic development deal in the region’s recent history and was intended to produce hydrogen-based, carbon-free fertilizer for local agriculture.
Atlas Agro’s plans now hang in the balance, with company officials and local economic leaders declining to comment on the project’s fate. The city of Richland, which had enthusiastically backed the plant, now faces the prospect of losing a transformative investment and the jobs that would have come with it. The loss is particularly bitter in Benton and Franklin counties, where Trump has consistently won a majority of the vote—underscoring that the funding cuts are being felt across the political spectrum.
Senator Maria Cantwell of Washington voiced her outrage, calling the decision “politically motivated” and warning that it would eliminate the potential for more than 10,000 jobs in the region. “The Trump Administration’s politically motivated decision to strip funds from the pioneering Pacific Northwest Hydrogen Hub is unprecedented and corrupt,” Cantwell stated, pledging to fight the cuts.
Washington Governor Bob Ferguson echoed those concerns, condemning the termination of more than $1.1 billion in state projects and vowing to challenge what he described as an “illegal action.” Ferguson pointed out that while the cuts disproportionately affect Democratic-led states, the pain is being felt in “red counties” as well, highlighting the complicated political geography of the decision.
The DOE, for its part, justified the funding terminations by citing a thorough financial review. In a written statement, Energy Secretary Chris Wright said the cancellations were part of an effort to “protect taxpayer dollars.” The department concluded that the projects “did not adequately advance the nation’s energy needs, were not economically viable, and would not provide a positive return on investment of taxpayer dollars.” Recipients now have 30 days to appeal the termination decision, but the fate of many projects remains uncertain.
Notably, the DOE revealed that 26 percent of the canceled awards—worth more than $3.1 billion—were issued by the Biden administration between the 2024 election and President Trump’s inauguration. The department did not specify what it plans to do with the clawed-back funds, leaving companies and state governments in the dark about whether the money might be redirected or simply withheld.
The casualties of the cuts extend beyond hydrogen hubs. Major utilities such as Commonwealth Edison, Xcel Energy, Exelon, General Electric, and Pacific Gas and Electric are among the companies losing funding. Also affected are firms producing solar energy, electric vehicles, and hydrogen power, as well as the Gas Technology Institute, which had sought to reduce methane emissions from oil and gas production. In Washington alone, non-hub projects losing support include Nippon Dynawave ($46.6 million), PACCAR Inc. ($68 million across two projects), CleanFiber Inc. ($10 million), Spokane Edo LLC ($5.3 million), SilFab Solar WA Inc. ($3 million), and four Washington State University projects totaling $9.8 million.
For Atlas Agro, the future is especially uncertain. The fertilizer plant would require more than 300 megawatts of electricity—enough to power the entire city of Richland three times over. While the company has floated the idea of tapping into new nuclear power, no deals have been finalized. The Bonneville Power Administration, which supplies much of the region’s electricity, has a 10-megawatt cap for new large users at its most favorable rates, posing yet another hurdle for the project.
Despite the setbacks, the Pacific Northwest Hydrogen Hub partners say they remain committed to their mission. “There is still immense opportunity for our region to finish what we started,” the hub said in a statement. “The future of hydrogen is still being written by states, communities, and industries across the country. With or without federal support, this industry will continue to drive the innovation and infrastructure needed to fortify America’s energy economy.”
As the dust settles, the broader implications of the Trump administration’s decision are coming into focus. The move has intensified partisan tensions in Washington, D.C., where a government shutdown looms and both sides are trading accusations of political gamesmanship. Democrats insist that the canceled projects represent a blow to job creation, lower energy costs, and climate progress, while the administration maintains it is safeguarding taxpayer interests and prioritizing economic viability.
What happens next—whether through appeals, new legislation, or shifts in political power—will determine the fate of these projects and the future of America’s clean energy ambitions. For now, communities from California to the Pacific Northwest are left grappling with the loss of billions in promised investment and the uncertain path ahead.