Infrastructure Investment and Jobs Act Clean Energy Funding (Rescission)

(IIJA Clean Energy)

Department of Energy

Proposed Cut

$15.2B

% Reduction

100.0%

Action Type

cancellation

Who Is Served

Clean energy companies; communities expecting grid modernization, hydrogen hubs, carbon capture projects

Summary

The Infrastructure Investment and Jobs Act (IIJA) Clean Energy Funding program at the Department of Energy uses money from the 2021 bipartisan infrastructure law to support projects like hydrogen hubs, carbon capture, grid upgrades, EV charging stations, and battery manufacturing. The FY2027 budget proposes canceling the entire $15,200 million (about $15.2 billion) that remains unspent, a 100% cut that would eliminate this funding stream completely rather than reduce it.

Who Is Affected

The cut touches many overlapping programs: about $4 billion for the National Electric Vehicle Infrastructure (NEVI) charging network, $4.7 billion tied to Regional Clean Hydrogen Hubs (some of it redirected inside DOE rather than fully canceled), $2.3 billion from the Advanced Technology Vehicles Manufacturing loan program, $746 million for battery materials processing and recycling grants, and smaller amounts for weatherization assistance ($191 million) and state energy programs ($59 million). Clean energy companies awaiting these commitments, communities near planned hydrogen hub and carbon capture sites, and local governments and low-income households counting on weatherization and EV charging investments would all lose expected federal support.

What this cut would actually mean

Because the funds are described as 'unobligated,' the administration says already-awarded grants and contracts would not be clawed back, but the impact falls on projects that were expected but not yet formally committed. Planned EV charging stations, hydrogen hub expansions, and carbon-capture demonstration projects could be delayed, scaled back, or canceled outright, and the jobs those projects would have created may never materialize. Communities that were counting on grid modernization or clean energy manufacturing investment would need to find other funding sources or go without, and some clean energy companies that built business plans around these federal commitments could face financial strain or project cancellation.

Sources

FY 2027 DOE Budget Request Again Proposes a Shift Away from Renewables and Toward Defense, Baseload Resources, AI and Critical Minerals — Novogradac analysis detailing the $15.2 billion IIJA rescission, including cuts to NEVI EV charging, weatherization, and state energy programs.
President Trump's FY2027 Dept. of Energy Budget Request — Taxpayers for Common Sense breakdown of the DOE FY2027 budget request, including the $15.2 billion IIJA rescission and reorganization of energy offices.
Energy and Water Development: FY2027 Appropriations — Congressional Research Service report confirming the request to cancel $15.247 billion in unobligated IIJA balances at DOE.
DOE's FY27 Budget Request: the Good, the Bad, and the Ugly — Federation of American Scientists analysis noting the rescission includes battery manufacturing, ATVM loan funds, and geothermal program funding.
Hot Takes: What the FY27 Presidential Budget Request Means for Climate and Energy — FAS analysis describing how $4.7 billion in Hydrogen Hub IIJA funds would be redirected to baseload power and AI supercomputers instead of canceled outright.
Trump proposes slashing DOE budget by $19.3B — Utility Dive report quoting the budget proposal's statement that the rescission targets unobligated balances and would not affect currently awarded projects.
Budget of the U.S. Government, FY2027 (DOE chapter) — Official White House budget document describing the 'Cancelling Green New Scam IIJA Funding' proposal of $15.2 billion.