Padilla, Schiff Join 35 Senators in Demanding Trump Administration Restore $8 Billion for Energy Projects They Illegally Canceled

Senators to Trump Administration officials: "your cancellations will mean thousands of lost jobs for Americans, many of whom had every reason to rely on the stability of their jobs before these cancellations and all of whom will face uncertain job markets in our increasingly slowing economy."

WASHINGTON, D.C. - U.S. Senators Alex Padilla, a member of the Senate Energy and Natural Resources (ENR) Committee, and Adam Schiff (both D-Calif.) joined Senate ENR Committee Ranking Member Martin Heinrich (D-N.M.), U.S. Senate Appropriations Committee Vice Chair Patty Murray (D-Wash.), and 33 other Senators in demanding that Secretary of Energy Chris Wright and Office of Management and Budget Director Russ Vought restore funding for 223 energy projects in Democratic-led states that the Trump Administration unlawfully canceled. The funding for these projects was approved and appropriated by Congress, and the cuts break existing bipartisan agreements while threatening to further raise energy costs.

These cuts targeting Democratic-leaning states like California were telegraphed earlier this year by reports of a DOE "hit list" of awards, contracts, and projects - many of which have already begun construction - that the Administration was considering canceling. The list contained California's Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) hydrogen hub and other California projects for which the Trump Administration is intending to withhold funding, including all $1.2 billion for ARCHES.

"We write in strong opposition to the Trump administration unlawfully cancelling $8 billion in federal investments in 223 energy projects," wrote the Senators. "For the 21 states with impacted projects, your cancellations will mean thousands of lost jobs for Americans, many of whom had every reason to rely on the stability of their jobs before these cancellations and all of whom will face uncertain job markets in our increasingly slowing economy."

"218 out of 223 projects that were terminated are in states with Democratic leadership. Even in programs where awards were made across all 50 states, such as the Grid Resilience and Innovation Partnerships program, only projects in Democratically led states were cancelled while similar projects in 'red states' remain," continued the Senators.

In addition to Padilla, Schiff, Heinrich, and Murray, the letter was also signed by Democratic Leader Chuck Schumer (D-N.Y.) and U.S. Senators Angela Alsobrooks (D-Md.), Michael Bennet (D-Colo.), Richard Blumenthal (D-Conn.), Lisa Blunt Rochester (D-Del.), Cory Booker (D-N.J.), Maria Cantwell (D-Wash.), Chris Coons (D-Del.), Catherine Cortez Masto (D-Nev.), Tammy Duckworth (D-Ill.), Dick Durbin (D-Ill.), Ruben Gallego (D-Ariz.), Kirsten Gillibrand (D-N.Y.), Maggie Hassan (D-N.H.), John Hickenlooper (D-Colo.), Mazie K. Hirono (D-Hawaii), Mark Kelly (D-Ariz.), Andy Kim (D-N.J.), Amy Klobuchar (D-Minn.), Ben Ray Luján (D-N.M.), Edward J. Markey (D-Mass.), Jeff Merkley (D-Ore.), Chris Murphy (D-Conn.), Jacky Rosen (D-Nev.), Bernie Sanders (I-Vt.), Brian Schatz (D-Hawaii), Jeanne Shaheen (D-N.H.), Tina Smith (D-Minn.), Chris Van Hollen (D-Md.), Elizabeth Warren (D-Mass.), Peter Welch (D-Vt.), Sheldon Whitehouse (D-R.I.), and Ron Wyden (D-Ore.). All 34 Democratic Senators from states with canceled grants and funding signed the letter.

"Satisfying the President's desire for political revenge and intimidation is not a lawful basis for your actions. It also betrays the callous indifference of this administration to the impacts of its decisions on everyday Americans. These are impacts that will be felt by Americans, regardless of their political views," concluded the Senators. "For the good of our country, the rule of law, and the American people, we demand that you change course and restore the previously awarded funding."

Senators Padilla and Schiff have strongly opposed the Department of Energy's recent project cuts. Last week, the California Senators blasted the Department's cancellation of all $1.2 billion Padilla secured in the Bipartisan Infrastructure Law for California's ARCHES hydrogen hub. Earlier this year, Padilla, Schiff, and Representatives George Whitesides (D-Calif.-27) and Mike Levin (D-Calif.-49) led a bipartisan, bicameral delegation of 45 lawmakers in urging DOE to preserve funding for hydrogen production hubs, including ARCHES. Padilla, Schiff, and 25 other Democratic Senators also sounded the alarm on DOE's "hit list" of key energy projects, demanding Secretary of Energy Chris Wright follow the law and preserve the hydrogen hub program. Additionally, Padilla questioned President Trump's nominee for Deputy Secretary of Energy on the "hit list," highlighting the importance of the Regional Clean Hydrogen Hubs program to "jumpstart" the national hydrogen economy and urging him to protect vital funding for ARCHES.

Full text of the letter is available here and below:

Dear Secretary Wright and Director Vought:

We write in strong opposition to the Trump administration unlawfully cancelling $8 billion in federal investments in 223 energy projects.

Your cancellation of these projects will irreparably harm Americans in all the 21 states with impacted projects, and all additional states that rely on those projects. For the 21 states with impacted projects, your cancellations will mean thousands of lost jobs for Americans, many of whom had every reason to rely on the stability of their jobs before these cancellations and all of whom will face uncertain job markets in our increasingly slowing economy. It will mean lost educational opportunities for countless students at the now-cancelled university-led projects. It will mean difficulty obtaining private financing for impacted developers and utilities, not just on the now-cancelled grants but on other future opportunities that depend in any way on the stability of government permits, investments, and grants. It will mean less domestic manufacturing and innovation, all while diminishing America's competitive leadership globally. And it will mean higher energy bills for households and businesses across the country, all of whom are already stretched thin thanks to the affordability crisis instigated by this administration's tariffs and economic policy.

The illegality of your cancellations is the only thing as indisputable as the harm your cancellations will wreak. The grants you terminated were authorized and appropriated under the Infrastructure Investment and Jobs Act, the Inflation Reduction Act, and annual appropriation bills which were passed by Congress and signed into law. The Department must expend these funds and faithfully execute the law, including many programs that have strict requirements for the timing of fund expenditure, purposes, and contractual expectations. In cancelling these awards, the Department points to authority to cancel these awards under 2 C.F.R. § 200.340, which provides very limited circumstances under which federal awards may be terminated, such as if an entity fails to comply with the conditions of the award, if the federal government and the entity mutually agree to terminate the award, or if the entity notifies the government of its intent to terminate the award. You have provided no indication that these conditions apply here.

Given the states impacted by these cancellations, the only criterion for cancelling the impacted projects appears to have been whether they were within Democratically led states. On this, the numbers do not lie: 218 out of 223 projects that were terminated are in states with Democratic leadership. Even in programs where awards were made across all 50 states, such as the Grid Resilience and Innovation Partnerships program, only projects in Democratically led states were cancelled-while similar projects in "red states" remain.

Satisfying the President's desire for political revenge and intimidation is not a lawful basis for your actions. It also betrays the callous indifference of this administration to the impacts of its decisions on everyday Americans. These are impacts that will be felt by Americans, regardless of their political views.

For the good of our country, the rule of law, and the American people, we demand that you change course and restore the previously awarded funding.

Sincerely,

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