Shifting Gears: U. S. Energy Loans Take a New Direction

The U. S. is making big changes to its energy loans. Nearly $84 billion in clean energy projects, approved under the previous administration, are being cut or revised. This move shows a clear shift in focus. Fossil fuels and nuclear energy are now getting more support, while subsidies for wind and solar energy are being reduced.

The Office of Energy Dominance Financing (EDF)

The EDF is behind these changes. They reviewed $104 billion in loans made earlier. Most of these loans were approved after the 2024 presidential election. The EDF is now canceling or terminating about $30 billion in loan obligations.

Notable Cancellations

• A $4.9 billion loan for the Grain Belt Express project, which aimed to transmit power from wind and solar farms to cities in the Midwest and East.
• About $9.5 billion in loans for wind and solar projects.

New Priorities

Instead, the EDF is supporting:

• New capacity at natural gas and nuclear power plants
• Revising another $53.6 billion in loans

2025 Tax Law and Lending Power

The 2025 tax law gave the EDF more lending power. Now, it is the world's largest energy lender with nearly $290 billion in available lending.

Energy Secretary Chris Wright's Statement

In November, Wright mentioned that the remaining loans will mainly boost nuclear power. Other priorities include:

• Coal, oil, gas
• Critical minerals
• Geothermal
• Power grid
• Manufacturing and transportation

The Big Question

This shift in energy loans raises questions. Is this the right path for the U. S.? Only time will tell.