The Trump administration acknowledged in court filings that it canceled billions of dollars in clean energy subsidies to California and other Democratic-leaning states and allowed hundreds of similar grants in Republican-leaning states to move forward, adding to accusations that federal funding decisions were driven by politics rather than project performance.
The admission was made in documents filed in federal court in connection with a lawsuit brought by University of California researchers and other plaintiffs challenging the Trump administration’s revocation of federal funding.
“DOE acknowledges that the inclusion of the subsidy in the October notification tranche was based solely on the political identity of the subsidy recipient country…” Department of Energy (DOE) attorney Jeff Novak said in a legal filing.
According to the filing, 284 energy subsidies were terminated because they were in states that voted for Harris and were represented by two Democrats. Federal prosecutors said the grants were not selected for termination based on performance, cost savings or other programmatic criteria.
The disclosure appears to contradict previous statements from Energy Secretary Chris Wright and other administration officials who said subsidy cuts were based on economic viability and energy priorities, not politics.
Here’s what you need to know about this:
Which California grants were affected?
In October, the Department of Energy announced it would end multibillion-dollar clean energy awards across the country, including in California. Canceled projects included funding for:
- Power grid infrastructure upgrades.
- Clean hydrogen development project.
- Battery manufacturing and storage efforts.
- Carbon capture program.
- Other climate and clean energy demonstration projects.
California was one of the states hardest hit by the cuts.
The administration has canceled 79 California energy grants totaling about $2.1 billion and an additional $1.2 billion in funding tied to the state’s ARCHES hydrogen hub project, California lawmakers said.
The California-led Renewable and Clean Hydrogen Energy Systems Alliance, known as ARCHES, is designed to establish California as a national leader in hydrogen fuel production and clean energy manufacturing. The court filing cites projects affected by subsidy cancellation, including hydrogen hubs in California and the Pacific Northwest.
Court filing outlines political criteria for revoking clean energy subsidies
The most shocking fact in the application concerned how the grants were selected.
Federal prosecutors acknowledged that nearly all of the terminated grants were in states that voted for Harris in 2024 and had Senate Democratic representation. They further said that no grants were included in the discontinuance list due to project performance, legal concerns, or cost-saving considerations.
At the same time, hundreds of grants that were also recommended for termination were left in place because they were in states that voted for President Donald Trump or have Senate Republican representation, the filing said.
The Trump administration has pushed back on claims that the application proves that political considerations drove the vetting process. Energy Department spokesman Ben Diederich told multiple news outlets that statements in the application that seemed to acknowledge politically motivated subsidy cancellations were “misinformation” and that Energy Department officials were evaluating the project without considering politics.
The administration contends there are differences between the Department of Energy’s review of the project and the White House Budget Office’s subsequent decision about which subsidies to include in the October cancellation notice. Officials claim that Energy Secretary Chris Wright’s previous testimony to Congress, in which he said there was “no political decision,” was referring to the Energy Department’s evaluation process, not the final selection of grants announced by the White House.
What California politicians are saying about canceled clean energy subsidies
California Democrats harshly criticized the revelations.
Sens. Adam Schiff and Alex Padilla, along with Rep. Zoe Lofgren and other members of California’s congressional delegation, previously called for a federal watchdog investigation into canceled energy subsidies impacting California projects.
Schiff said in a statement in December that the subsidy cuts reflected what he called an “unlawful revenge operation” against California, claiming the administration had openly acknowledged targeting blue states. He said the cancellation could threaten jobs and increase energy costs for Californians.
Padilla similarly argued that canceled funding would harm California’s energy projects and exacerbate affordability challenges for residents. He welcomed the inspector general’s review of the administration’s actions.
“The Trump administration’s billions of dollars in illegal cuts to California energy projects, including more than $2 billion in districts represented by Republicans, are further exacerbating President Donald Trump’s affordability crisis,” Padilla said.
Leaders of the Democratic Party of the People have also started filing a petition with the court. Sen. Patty Murray of Washington and Rep. Marcy Captur of Ohio issued a joint statement Friday calling the subsidy revocation a “totally un-American” weaponization of federal power and accusing the government of punishing states for their political views.
