What did the Energy Department lawyer explicitly admit about the reason for canceling energy grants in certain states?

Jeffrey Novak, DOE’s principal deputy general counsel, admitted in court filings that the cancellation of grants in October 2025 was based solely on the political identity of the recipient’s state—specifically, that grants were terminated only in 'Blue States' and that this differential treatment had no rational connection to DOE’s agency priorities or the location/place of performance of the grants.

How much funding was cut, which major project was affected, and how did the White House frame the cancellations?

The Energy Department eliminated nearly $8 billion in energy grants last October, including $1.2 billion approved for a California hydrogen hub under President Biden; White House Budget Director Russ Vought publicly labeled the canceled funds as part of the 'Green New Scam' and explicitly tied the cuts to the 16 states that voted for Kamala Harris in the 2024 presidential election.

Energy Department Admits Grant Cuts Driven by State Politics

Jul 24, 2026

The US Energy Department admitted in court that nearly $8 billion in energy grants were canceled because recipient states voted Democratic. This decision impacts major projects like a California hydrogen hub and faces legal challenges from researchers.

bloomberg

2026-07-24

Energy Department Admits Grant Cuts Driven by State Politics

Energy Department Admits Grant Cuts Driven by State Politics

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