Trump Cancels Nearly $30 Billion in Biden-Era Green Energy Loans, Igniting a Political Firestorm

In a move that sent shockwaves through Washington and the global energy sector, President Donald Trump has ordered the cancellation of nearly $30 billion in clean energy loans that were approved during the Biden administration. The decision marks one of the most aggressive reversals yet of the previous administration’s climate-driven economic agenda — and it is already reshaping the future of U.S. energy policy.

The announcement came as Trump signed a sweeping executive directive in a packed Oval Office, flanked by senior officials and supporters. Wearing his signature white cowboy hat — a symbol meant to evoke American industry and energy independence — the president raised his hands as applause erupted behind him. The moment was designed to send a clear message: the era of what he called “radical green giveaways” was over.

A Massive Financial Reset

The loans being canceled were part of a sprawling federal program created under President Joe Biden to accelerate the transition to renewable energy. They funded large-scale projects in wind, solar, hydrogen, and battery storage, many of which relied almost entirely on federal guarantees to survive.

Trump’s administration argues that those loans were rushed through without proper financial scrutiny and exposed taxpayers to enormous risk.

“These were politically driven investments, not economically sound ones,” a senior Trump energy adviser said. “Billions of dollars were handed to companies that never could have survived without government life support.”

The administration says audits revealed projects that were already struggling, behind schedule, or tied to firms with close political connections — raising concerns about favoritism and financial mismanagement.

A New Energy Strategy

Rather than continue backing what Trump calls “fragile and subsidized green experiments,” the administration is pivoting toward what it describes as “reliable, American-powered energy.”

That includes:

• Expanded natural gas production

• New investment in nuclear power

• Modernization of existing coal plants

• Infrastructure upgrades for the national power grid

Supporters say this strategy will stabilize energy prices, reduce blackouts, and protect industrial jobs that were being squeezed by aggressive climate regulations.

“Families don’t want ideology in their electric bills,” Trump said during the signing. “They want power that works, and they want it affordable.”

Economic Shockwaves

But the fallout from the decision is already spreading.

Communities across the country that were preparing for green energy projects are now facing uncertainty. Construction has halted on multiple wind farms and solar facilities. Companies that had secured federal backing are scrambling to find private financing — or preparing to shut down.

Labor unions and local governments warn that tens of thousands of jobs tied to renewable energy projects could now be at risk.

“We were promised stability and long-term growth,” said a mayor from a Midwest town that was set to host a solar manufacturing plant. “Now we’re staring at layoffs and abandoned sites.”

A Deepening Political Divide

The move has become a flashpoint in the growing battle over America’s energy future.

Trump allies praise the decision as a long-overdue correction to what they see as reckless spending and climate activism disguised as economic policy.

“This is about protecting taxpayers and restoring common sense,” one Republican lawmaker said. “We were throwing billions into projects that might never produce a single watt of power.”

Democrats, meanwhile, accuse Trump of sabotaging America’s clean-energy leadership and setting the country back decades.

They argue that the canceled loans were critical to competing with China and Europe in renewable technology and to meeting climate commitments.

“This is an attack on American innovation,” one Democratic senator said. “We are walking away from the industries of the future.”

What Happens Next

With billions now frozen or withdrawn, the coming months will determine whether Trump’s gamble pays off.

If energy prices drop and reliability improves, supporters will argue the reset worked. If job losses mount and investment dries up, critics will say the administration triggered another cycle of costly policy whiplash.

Either way, the decision has already changed the landscape — not just for energy companies, but for the political fight heading into 2026.

As Trump put it bluntly after signing the order:

“We’re done funding fantasies. We’re building power that actually keeps the lights on.”

And with that stroke of a pen, America’s energy future took a sharp new turn.