Over $14 billion in U.S. clean energy investments canceled amid funding cuts
- The U.S. is experiencing significant cancellations in clean energy projects, exceeding $14 billion this year.
- Recent policy changes and proposed funding cuts have raised concerns among industry leaders about job losses and future investments.
- Without the necessary tax incentives, the U.S. risks falling behind in the global clean energy sector.
In 2025, the U.S. faced a significant setback in clean energy investments due to recent policy changes that have led to the cancellation of over $14 billion worth of projects. These developments are largely attributed to concerns stemming from potential cuts to federal funding for renewable energy and green technology initiatives, particularly in the context of the tax reform bill progressing in Congress. The cuts have raised alarm among industry stakeholders, with many fearing that these actions jeopardize both ongoing projects and future investments needed to support clean energy job growth. In light of these cancellations, approximately 10,000 jobs have been lost in the clean energy sector since early 2025. Prominent projects affected include the suspension of the Kore Power battery factory in Arizona, closure of BorgWarner EV manufacturing sites in Michigan, and Bosch's halting of a $200 million investment in a hydrogen fuel cell factory in South Carolina. These cancellations are reversing the progress made under previous administrations, which had sought to establish a leading position for the U.S. in the global clean energy market. The Trump administration has been particularly criticized for its negative stance on green energy, as it pushes for a return to fossil fuel reliance. The Department of Energy, under Secretary Chris Wright, has also axed nearly $4 billion in project grants aimed at reducing greenhouse gas emissions. A wide array of organizations, including the Carbon Capture Coalition and Clean Air Task Force, have raised concerns that the decision to cancel funding is not in alignment with the U.S.'s stated goals for promoting domestic clean energy innovation and manufacturing. The future of projects reliant on tax credits is uncertain as the Senate reviews the proposed funding cuts. While officials express confidence that success can still be achieved through alternative means, the fear of losing financial backing has made many companies wary of moving forward with their initiatives. Ultimately, these changes could hinder the U.S.'s transition into a clean energy economy, especially as other nations continue to commit substantial investments into renewable technologies.