On January 22, the U.S. Department of Energy announced it is in the process of restructuring or eliminating close to $84 billion in energy loan commitments previously authorized during the Biden administration. This adjustment represents a strategic shift towards favoring fossil fuel and nuclear energy investments while reducing financial support for renewable projects such as wind and solar.
The restructuring effort by the Office of Energy Dominance Financing (EDF) results from a comprehensive review of $104 billion in loans issued under the prior administration, with a substantial portion allocated post-2024 presidential election. This office, formerly known as the Loan Programs Office, is now managing the transition to align with the current administration’s energy policies.
According to department statements, approximately $30 billion in loan obligations have been canceled or are being actively terminated. Among these is a notable loan cancellation of $4.9 billion from the previous year for the Grain Belt Express, a transmission initiative aimed at transporting power generated from wind and solar sources to urban centers in the Midwest and East.
Additionally, around $9.5 billion in loans directed towards wind and solar projects have been eliminated. In their place, there is an emphasis on facilitating new capacity in natural gas and nuclear power plants wherever feasible. Furthermore, the department is revising $53.6 billion worth of loans to better align with its updated energy strategy.
The Energy Department highlights that the 2025 tax legislation has authorized billions of dollars in new lending capacity, positioning the EDF as the world's largest energy lender with nearly $290 billion in available funds. Energy Secretary Chris Wright previously underscored that boosting nuclear power will be a principal objective for the deployment of remaining loan resources.
The department has identified priorities including support for coal, oil, and natural gas projects, in addition to investments targeting critical minerals, geothermal energy, the electrical grid, as well as manufacturing and transportation sectors.