Trump Administration Explores Canceling Clean Energy Loans
The Trump administration is considering overhauling a $400 billion clean energy loan program and exploring legal options to cancel existing loans, according to an anonymous source.
John Sneed, the newly appointed director of the Energy Department's loan program, has indicated that the program will focus on technologies favored by the administration, such as nuclear power and liquefied natural gas. He is reportedly also considering canceling financing deals that have already been issued.
The Department of Energy has stated that the loans are under review to ensure alignment with President Trump's priorities.
The loan program, established under President George W. Bush, has provided funding to companies including:
* PG&E Corp. ($15 billion for clean energy projects)
* Ford Motor Co. ($9.2 billion for battery factories)
* Tesla Inc. ($465 million for Model S production)
The administration may attempt to cancel loans to Rivian Automotive Inc. ($6.6 billion) and Samsung SDI Co./Stellantis NV ($7.54 billion).
Reclaiming funding or canceling financing may be challenging, especially if funds have been disbursed. However, experts believe it may be possible to withhold money that has not yet been disbursed.
The program has nearly $47 billion in conditional commitments to companies that have not yet been finalized.