Democrats in Minnesota and other blue states are accusing the Trump administration of retaliating against them by canceling nearly $8 billion in clean energy funding.
The U.S. Department of Energy (DOE) announced Wednesday that it has terminated 321 financial awards worth more than $7.5 billion for 223 projects across 16 states, all of which voted for Kamala Harris during the 2024 elections.
“Following a thorough, individualized financial review, DOE determined that these projects did not adequately advance the nation’s energy needs, were not economically viable, and would not provide a positive return on investment of taxpayer dollars,” the department said in a statement.
The move comes during an impasse in federal government shutdown negotiations in the Republican-led Congress, with Democrats holding out for an extension to Biden-era healthcare tax credits that will push down the cost of health insurance.
The plan to slash renewable energy funding was revealed on Wednesday by Russell Vought, one of the key authors of the controversial right-wing Project 2025, who is now President Trump’s White House budget director.
A dozen of the canceled awards were for projects in Minnesota, including one planned by Macalester College, according to the list obtained by Latitude Media.
It’s also being reported that a $464 million grant for a seven-state transmission line project, which was originally submitted by organizations including the Minnesota Department of Commerce, is among the canceled projects.
Awards were terminated for Minnesota projects planned by:
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Xcel Energy Services Inc.
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Minnesota Department of Commerce
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The Great Plains Institute for Sustainable Development
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American Lung Association
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Native Sun Community Power Development
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Center for Energy and Environment – two awards canceled
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Cullins Electrified Power NA Inc.
Xcel Energy plans to shut down the Sherburne County Generating Plant, or Sherco, a coal-fired power plant on the banks of the Mississippi River.Tony Webster, Flickr
U.S. Sen. Tina Smith claims that the Trump administration is “bullying Minnesotans” amid the standoff between Democrats and Republicans in Congress over health care funding.
President Donald Trump threatened Tuesday to target Democratic priorities.
“We can do things during the shutdown that are irreversible, that are bad for them and irreversible by them,” the president told reporters in the Oval Office. “Like cutting vast numbers of people out, cutting things that they like, cutting programs that they like.”
As well as voting for Harris last November, all 16 states impacted by the cuts are also represented by two Democrats in the U.S. Senate, though two of then – New Hampshire and Vermont – have Republican governors.
Those states are California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Vermont and Washington.
California’s U.S. Sen. Alex Padilla called the cancelation of $1.2 billion for the state’s hydrogen hub “vindictive, shortsighted and proof this administration is not serious about American energy dominance.”
The Environmental Defense Fund called out Vought for his “unlawful attempt to cancel clean energy projects in states that didn’t vote for President Trump,” which it argues will increase electricity costs for everyone.
“In the middle of a government shutdown, these are shamelessly partisan actions, pulled straight from the Project 2025 playbook, favoring insiders in the fossil fuel industry and punishing American families,” the environmental organization wrote in a statement Thursday.
Related: What does the federal government shutdown mean for Minnesota?
Trump shared on social media Thursday that he’s meeting with Vought, whom the president identified as “of PROJECT 2025 Fame” to talk about “which of the many Democrat Agencies” could be cut, either temporarily or permanently.
“I have a meeting today with Russ Vought, he of PROJECT 2025 Fame, to determine which of the many Democrat Agencies, most of which are a political SCAM, he recommends to be cut, and whether or not those cuts will be temporary or permanent,” Trump posted to Truth Social. “I can’t believe the Radical Left Democrats gave me this unprecedented opportunity. They are not stupid people, so maybe this is their way of wanting to, quietly and quickly, MAKE AMERICA GREAT AGAIN!”
During his 2024 campaign, Trump tried to distance himself from Project 2025, a controversial policy blueprint drafted by the Heritage Foundation. He called it a “seriously extreme” plan conceived by people on the “severe right” at a rally.
The president also signaled this week that mass layoffs of federal workers are coming, beyond of the furloughs that traditionally come with shutdowns, though details haven’t been announced yet.
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This story was originally reported by Bring Me The News on Oct 2, 2025, where it first appeared in the MN News section. Add Bring Me The News as a Preferred Source by clicking here.
