Trump’s $7.6 Billion Energy Project Cuts Draw Federal Probe

(Bloomberg) -- The Trump administration’s move to cut $7.6 billion in grants to California and other Democratic-led states has prompted a probe by a federal watchdog. 

The Energy Department’s inspector general said it will audit the decision to slash the funding, responding to a request from congressional Democrats who argue the terminations may violate federal law and raise questions about the agency’s ability to meet its financial obligations.

“The Office of Inspector General recently announced an audit which will review the Department of Energy’s processes when cancelling financial assistance and whether those cancellations were in accordance with established criteria,” Sarah B. Nelson, the Energy Department’s acting inspector general, wrote in the letter dated December 15. 

The Energy Department said in October it was canceling billions of dollars earmarked for hydrogen projects, grid upgrades, carbon capture and other energy projects in blue states. The move, first announced by White House Budget Director Russell Vought, was part of a pressure campaign aimed at pushing Democrats to end a US government shutdown that lasted a record 43 days. 

“I look forward to the Office of Inspector General’s thorough review of this matter and will continue to urge that these critical, congressionally appropriated grants are reinstated,” said Senator Adam Schiff, a California Democrat who lead the request for the inspector general investigation. Of the 321 terminated awards, 79 were for projects in California totaling more than $2 billion, Schiff and other lawmakers wrote. 

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