Washington:The Trump administration has announced plans to terminate a number of clean energy projects and temporarily freeze billions of dollars in federal funding for major infrastructure projects in New York, amid the ongoing U.S. government shutdown.
The Energy and Transportation Departments said the moves are part of broader efforts to encourage Congress to reach a funding agreement. The Department of Energy (DOE) will terminate 321 financial awards supporting 223 projects, saving approximately $7.56 billion. The DOE stated that the projects “did not adequately advance the nation’s energy needs” or provide a positive return on taxpayer investment. Recipients have 30 days to appeal.
States affected include California, New York, and 14 others. California Governor Gavin Newsom highlighted the cancellation of funding for a hydrogen energy project, valued at up to $1.2 billion, which could impact jobs and ongoing initiatives.
In New York, the Department of Transportation has frozen nearly $18 billion in federal funding for the Second Avenue Subway and Hudson Tunnel projects. The department cited concerns over certain contracting policies and said the funds will remain on hold until a review is completed.
New York Governor Kathy Hochul described the funding freeze as politically motivated and emphasized the importance of continuing critical infrastructure projects despite the federal shutdown.
The moves come as the Trump administration and Congress remain at an impasse over the federal budget, with discussions ongoing to resolve the shutdown._ AFP
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