Trump Administration Cuts Energy Projects, Freezes $18B in New York Funding
October 2, 2025
The Trump administration has announced the termination of dozens of clean energy projects and frozen billions in federal funding for major infrastructure projects in New York, escalating tensions with Democrats amid a looming government shutdown.
Energy Project Cuts
The Department of Energy (DOE) revealed the termination of 321 financial awards supporting 223 projects, claiming this would save approximately $7.56 billion in taxpayer funds. According to the DOE, the projects — managed by offices including the Office of Clean Energy Demonstrations and Office of Energy Efficiency and Renewable Energy — “did not adequately advance the nation’s energy needs” or provide a positive return on investment.
Recipients of federal funding have 30 days to appeal, and some have already begun the process. Specific projects affected were not listed.
Russell Vought, head of the Office of Management and Budget (OMB), called the cancelled programs “Green New Scam funding,” claiming they advanced “the Left’s climate agenda” and listed affected states including California, New York, and 14 others.
California Governor Gavin Newsom criticized the move, highlighting the cancellation of a $1.2 billion hydrogen energy project, which could impact tens of thousands of jobs. He vowed to continue pursuing a “clean energy strategy” despite federal interference.
New York Infrastructure Funding Frozen
In New York, the Department of Transportation (USDOT) froze nearly $18 billion for two major projects: the Second Avenue Subway and the Hudson Tunnel. The department cited concerns over race- and sex-based contracting requirements, calling them “unconstitutional” and contrary to civil rights laws.
The freeze will remain in place until a “quick administrative review” is completed. USDOT added that the shutdown has delayed this review due to furloughs of civil rights staff.
New York Governor Kathy Hochul condemned the move as “political payback” and “an attack on New York,” accusing President Trump of using the government shutdown to hurt American citizens.
Political Fallout
The decision comes amid ongoing negotiations between the Trump administration and Congress, with Republicans and Democrats at an impasse over government funding. The cuts and freezes are being seen as a strategy to pressure Democrats while igniting debate over energy policy and federal infrastructure funding.
