Caterpillar, Komatsu lose millions in federal energy project funding

by Linda

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  • Caterpillar and Komatsu could be impacted by the federal energy project cuts.
  • The Trump administration moved to cut nearly $8 billion in projects from blue states.

PEORIA — Two Peoria-area manufacturers are set to lose millions of dollars in federal funds following President Donald Trump’s move to cancel billions of dollars in energy projects, mostly in Democrat-run states.

Illinois was one of 16 states to have energy projects funding, totaling $7.6 billion, terminated last week by the Trump administration in a move that targets blue states during a government shutdown which Trump and his allies have pinned on Democrats. In total, Illinois will lose $752,301,434 in funding.

The project terminations, which were announced by Trump’s director of the White House Office of Management and Budget Russ Vought, will impact the Peoria area.

Caterpillar is set to lose a $3.2 million in U.S. Rep. Darin LaHood’s district, while Komatsu is slated to lose $2.5 million in funding in U.S. Rep. Eric Sorensen’s district.

Sorensen, a Democrat from Illinois’s 17th District, said the projects, which were already appropriated by Congress, were designed to “lower energy costs, create jobs, and boost American innovation.”

“This is a political stunt that puts working families last. This reckless decision means more than $54 million in lost investment that would have created good-paying jobs, supported clean energy technology, and kept our communities competitive,” Sorensen said in a statement. “This isn’t about saving taxpayer dollars. The funding was already approved. This is about politics, plain and simple — and our families will pay the price.” 

Vought, one of the co-authors of Project 2025, said in a statement on X that the projects were part of the “Green New Scam” and “fueled the Left’s climate agenda.”

Komatsu declined to comment for this story.

Caterpillar and LaHood’s office did not immediately respond to requests for comment.

Sustainable energies and technologies has been a focus point of Caterpillar’s in recent years following the launch of its “Pathways to Sustainability” program.

Under the electric power sustainable energy and technology section of its website, Caterpillar says: “For Caterpillar, sustainability is not a new concept. It’s part of who we are and what we do every single day. From lower carbon intensity fuels to solar power, Cat Electric Power puts sustainability in action by delivering a wide range of power solutions that make your operations more efficient and help to meet your sustainability-related goals.”

Komatsu, too, according to its website, has made sustainability a focus in recent years and has even made a pledge to achieve carbon neutrality by 2050.

“At Komatsu, sustainability is not just a goal — it’s a fundamental part of how we do business,” Komatsu’s website says. “We aim to create value through manufacturing and technology innovation to empower a sustainable future where people, business and our planet thrive together.”

Trump has routinely targeted programs and rhetoric focused on curbing climate change, including solar power and electric vehicles, during his presidency. While speaking to the United Nations last month, Trump called climate change a “con job.”

“This ‘climate change,’ it’s the greatest con job ever perpetrated on the world, in my opinion,” Trump said at the United Nations. “All of these predictions made by the United Nations and many others, often for bad reasons, were wrong. They were made by stupid people that have cost their countries fortunes and given those same countries no chance for success. If you don’t get away from this green scam, your country is going to fail.”

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