Biden Administration Halts Energy Department Spending, Citing Comprehensive Review
The Biden administration has instructed the Energy Department to suspend spending, loans, and various other activities as part of a thorough examination to verify alignment with the administration's objectives.
A memo obtained by Bloomberg News from Ingrid Kolb, the department's acting secretary, directs the freeze on grant awards, loans, funding opportunities, procurement announcements, regulations, research, and operations, including staff transfers and the publication of regulations and studies.
The administration's objective, according to the memo, is to guarantee that all actions adhere to current government policies and priorities, including budget constraints.
The suspension affects the department's substantial $50 billion budget, which includes funding for the development of novel energy technologies. Additionally, its Loan Programs Office has $41.2 billion in conditional commitments to businesses that have not yet been finalized.
The department also handles the disposal of nuclear waste from Cold War bomb production, supercomputer research, and the maintenance of the nation's emergency crude oil reserves.
This directive is comparable to those issued by former President Joe Biden to numerous agencies upon assuming office, but its scope is broader than the executive order Trump signed on his first day in the White House. That action directed the halt and review of spending from the Inflation Reduction Act, a cornerstone of Biden's climate policy, and a bipartisan transportation bill that also allocated billions of dollars to various Energy Department initiatives.
The Energy Department has not yet responded to a request for comment.
The Interior Department's acting head issued a comparable directive on Jan. 20, suspending leases, rights of way, and other licenses for wind and solar projects on federal lands and waters.