Trump-Era Energy Policy Shift: DOE Halts Billions in Biden-Era Loans
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Trump-Era Energy Policy Shift: DOE Halts Billions in Biden-Era Loans
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The DOE has begun reviewing its Loan Programs Office, which has financed nearly $70 billion in energy projects and made more than $41.2 billion in conditional commitments that haven't yet been finalized. While some loans will proceed due to being too far along to change course, Wright indicated that many will be canceled following a careful review process his team has just implemented.
This move aligns with the Trump administration's broader "energy dominance" agenda that Wright outlined in a nine-point plan in February. The plan prioritizes building nuclear power capacity, advancing liquefied natural gas production, and constructing data centers on federal land.
On May 2, Wright also released a statement on President Trump's 2026 Budget, which is expected to reflect the administration's priorities of strengthening and securing the U.S. energy system while positioning America to lead in the global AI race.
The administration has been aggressive in reshaping federal energy policy during its first 100 days, with dramatic reductions in the federal workforce. Over 260,000 employees have been dismissed, retired, or voluntarily separated across government agencies, with disproportionate cuts affecting offices central to energy and environmental oversight, including the DOE.
Wright has been particularly vocal about energy efficiency standards, calling existing rules "nonsensical" and instituting a comprehensive review of the standards program. On Friday, May 2, he visited Rinnai, a company likely to benefit from rollbacks of standards for tankless gas water heaters.
The administration has also taken steps to reshape the federal permitting landscape following a January executive order declaring a "National Energy Emergency." The Interior Department plans to use emergency authorities to accelerate approvals, aiming to complete environmental reviews for certain projects in 28 days rather than the customary two years.
As Wright implements these policy shifts, he faces opposition from clean energy advocates, industry coalitions, and public sector stakeholders who have raised concerns about diminished institutional capacity and potential delays in project execution.