Trump Pulls $4.9 Billion in Financing for Power Line
(Bloomberg) -- The Trump administration is canceling $4.9 billion in federal financing for a US transmission project that’s faced backlash from Republican lawmakers over ties to wind energy.
Financing for the high-voltage transmission line, which would span from Kansas to Missouri, was initially offered under President Joe Biden. The Energy Department said that the conditional commitment made in November for the Grain Belt Express LLC project was “rushed out the door in the final days of the Biden administration.”
“After a thorough review of the project’s financials, DOE found that the conditions necessary to issue the guarantee are unlikely to be met and it is not critical for the federal government to have a role in supporting this project,” the Energy Department said in a statement Wednesday. “To ensure more responsible stewardship of taxpayer resources, DOE has terminated its conditional commitment.”
It’s a rare move from the US to backtrack on a power project meant to fortify the electric system and comes just months after President Donald Trump issued an executive order calling for strengthening grid reliability and security.
The $11 billion transmission project, being developed by closely held Invenergy to carry electricity generated by wind farms and other energy sources, came under criticism from Republicans, including Missouri Senator Josh Hawley. The lawmaker characterized the project as “an elitist land grab harming Missouri farmers and ranchers” and also called it a “green scam.” He said earlier this month he has secured a commitment from Energy Secretary Chris Wright to kill the project.
The uncertain fate of the Grain Belt line, which has been in the works for more than a decade, highlights a debate over federal energy policy that’s emerged under the pro-fossil fuel Trump Administration. It also arrives at a time when Americans are grappling with rising electricity prices as demand jumps, in large part because of data centers to power artificial intelligence.
Invenergy has said that the project is critical to modernizing American’s aging grid. In recent days, the company appeared to be mounting a campaign to save its federal funding. Bloomberg News reported this week that Invenergy made plans to connect a natural gas plant to the line and was also in talks to add coal-fired generation.
“While we are disappointed about the LPO loan guarantee, a privately financed Grain Belt Express transmission superhighway will advance President Trump’s agenda of American energy and technology dominance while delivering billions of dollars in energy cost savings, strengthening grid reliability and resiliency, and creating thousands of American jobs,” Invenergy said in a statement.
The Energy Department’s move to rescind the funding offer comes amid a broader review of its Loan Programs Office, which it said had issued $85 billion in closed loans and conditional commitments made between Election Day 2024 to Inauguration Day 2025.
(Updates with statement from project developer in penultimate paragraph)
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