Eighteen of the 24 projects were awarded through DOE’s Industrial Demonstrations Program (IDP). The program was made law in the Inflation Reduction Act and cost-shares the deployment of innovative technologies by energy-intensive manufacturers. It aims to strengthen the economic competitiveness of U.S. manufacturers in global markets demanding lower carbon emissions, while supporting American manufacturing jobs and communities.  

This decision follows remarks in May from U.S. Secretary of Energy Chris Wright at a House Energy-Water Appropriations Subcommittee hearing. During the hearing, Wright assured members of Congress that there was no funding freeze at DOE and repeatedly claimed that a decision on the projects would not be made until the end of summer.

Following the announcement, the BlueGreen Alliance released a statement from Executive Director Jason Walsh: 

“The awarded projects that DOE is seeking to kill are concentrated in rural areas and red states. American manufacturers are hungry to partner with the federal government to bolster U.S. industry. The IDP saw $60 billion worth of applications during the program selection process, a ten-times oversubscription. The elimination of these contracts risks billions in private investment for domestic manufacturing. For operational facilities, the funding cancellations risk job security for hundreds, if not thousands, of workers and spell economic uncertainty for local communities. This is an act of economic sabotage. 

“American manufacturers want to be at the cutting edge of industry and they know that means leading the way on innovative new technologies and processes to reduce emissions and increase efficiency. This program gave industry a much-needed boost to compete in the increasingly carbon-constrained global markets and supports a critical industrial transformation. President Trump claims to be a champion of American manufacturing, but today’s announcement is further evidence that he and his Secretary of Energy are liars.”