Trump administration cancels $5B loan guarantee for solar and wind power line

The Trump administration is canceling a nearly $5 billion dollar loan guarantee for a power line that would connect wind and solar power to the grid, marking the latest in a string of attacks on renewable energy by the administration. 

The Biden administration had previously offered a loan guarantee of up to $4.9 billion dollars for the Grain Belt Express Phase 1 project, a massive electric transmission project in Kansas and Missouri.

“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 Department of Energy said in a written statement. 

“To ensure more responsible stewardship of taxpayer resources, DOE has terminated its conditional commitment,” it added.

Grain Belt Express indicated in a statement that it would continue with its efforts to build the massive power line, which would stretch across 800 miles and add 5,000 megawatts of power capacity, or enough to power 500 million LED lightbulbs.

“America is energy dominant and an AI powerhouse, and Grain Belt Express will be America’s largest power pipeline,” the statement said. 

“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,” it added.

The energy department’s move comes after Sen. Josh Hawley (R-Mo.) repeatedly railed against the power line. He took credit for canceling the loan, with his office saying the cancellation came after his request.

“The Grain Belt Express boondoggle loan has been CANCELLED,” he said in a post on the social platform X.

However, Democrats on the Senate Energy and Natural Resources Committee criticized the cancellation in a post on X.

“The Grain Belt Express Transmission Line would increase grid reliability and reduce electricity prices for American families. It’s EXACTLY the kind of project experts say we need to meet increasing demand. Hawley, Trump, and [Energy Secretary] Chris Wright just killed it, with zero justification,” said the committee Democrats, who are led by Sen. Martin Heinrich (N.M.). 

In its final weeks in office, the Biden administration pushed forward several loans for climate-friendly energy projects. The Trump administration says it is now reviewing $85 billion in closed loans and conditional commitments made by the Energy Department’s Loan Programs Office between President Trump’s election and his inauguration.

The Trump administration is also seeking more broadly to drive the country away from solar and wind, climate-friendly energy sources that they argue are not sufficiently reliable. 

Trump’s tax and spending slashes incentives for solar and wind. Separately, his Interior Department recently put out a memo that is expected to make it more difficult to advance and approve wind and solar projects.