Trump administration cancels $5B loan guarantee for solar and wind power line
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 powerline. 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 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 'big, beautiful bill' 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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
3 minutes ago
- CNBC
China releases AI action plan days after the U.S. as global tech race heats up
SHANGHAI — The tech race between the world's two largest economies just intensified. China on Saturday released a global action plan for artificial intelligence, calling for international cooperation on tech development and regulation. The news came as the annual state-organized World Artificial Intelligence Conference kicked off in Shanghai with an opening speech by Premier Li Qiang, who announced that the Chinese government has proposed the establishment of a global AI cooperation organization, according to an official readout. Days earlier, U.S. President Donald Trump announced an American action plan for AI that included calls to reduce alleged "woke" bias in AI models and support the deployment of U.S. tech overseas. "The two camps are now being formed," said George Chen, partner at the Asia Group and co-chair of the digital practice. "China clearly wants to stick to the multilateral approach while the U.S. wants to build its own camp, very much targeting the rise of China in the field of AI," Chen said. He noted how China may attract participants from its Belt and Road Initiative, while the U.S. will likely have the support of its allies, such as Japan and Australia. In his speech, Premier Li emphasized China's "AI plus" plan for integrating the tech across industries and said the country was willing to help other nations with the technology, especially in the Global South. The category loosely refers to less developed economies, especially countries outside the U.S. and European orbits. Since 2022, the U.S. has sought to restrict China's access to advanced semiconductors for training AI models. Earlier this month, U.S. chipmaker Nvidia said the U.S. was allowing it to resume shipments of a less advanced H20 chip to China after a roughly three-month pause. However, China has been developing homegrown alternatives, which Nvidia CEO Jensen Huang both praised and described as "formidable" during his third trip to China this month. Former Google CEO Eric Schmidt met with Shanghai Party Secretary Chen Jining on Thursday in the city ahead of the AI conference, according to a city announcement. Schmidt did not immediately respond to a CNBC request for comment.
CNBC
4 minutes ago
- CNBC
Trump arrives in Scotland for golf and bilateral talks as EU trade deal nears
U.S. President Donald Trump, dogged by questions about his ties to disgraced financier and sex offender Jeffrey Epstein, arrived in Scotland on Friday for some golf and bilateral talks that could yield a trade deal with the European Union. Trump told reporters upon his arrival that he will visit his two golf properties in Scotland and meet with British Prime Minister Keir Starmer and European Commission President Ursula von der Leyen, whom he called a "highly respected woman." As hundreds of onlookers cheered his arrival, Trump reiterated his earlier comment about a 50-50 chance of securing a deal with the EU, adding that it would be his administration's largest trade agreement thus far, if it came together. However, he said there were still "sticking points" with Brussels on "maybe 20 different things." Trump said his meeting with Starmer would be more of a celebration of the trade deal already reached than continued work on it, adding, "It's a great deal for both." Before he left Washington, Trump stated that his administration was working diligently on a potential trade deal with the EU, and Brussels was eager to finalize a deal. Von der Leyen said later she would meet Trump in Scotland on Sunday. EU diplomats say a deal could result in a 15% tariff on EU goods, mirroring a framework accord with Japan reached this week and half of the 30% Trump is threatening to impose by Aug. 1. Trump has sought to reorder the global economy after imposing a 10% tariff on nearly all trading partners in April and threatening sharply higher rates for many countries to kick in a week from now. Trump says the moves will reduce the U.S. trade deficit and generate additional revenue, but economists warn that the new trade policies could drive up inflation. Trump, facing the biggest domestic political crisis of his second term, expressed frustration about ongoing questions about his administration's handling of investigative files related to Epstein's criminal charges and his 2019 death in prison. "You make it a very big thing over something that's not a big thing," Trump told reporters in Scotland, urging them to focus on other prominent Americans with ties to Epstein, including former President Bill Clinton. "Talk about Clinton. Talk about the former president of Harvard. Talk about all of his friends. Talk about the hedge fund guys that were with him all the time. Don't talk about Trump," he said. "What you should be talking about is the fact that we have the greatest six months in the history of a presidency." The Epstein issue has caused a rare breach with some of Trump's most loyal Make America Great Again supporters, and majorities of Americans and Trump's Republicans say they believe the government is hiding details on the case, according to Reuters/Ipsos polling. White House officials are hoping the controversy dies down while Trump is abroad, two people familiar with the matter said. Trump will stay at his Turnberry property on Scotland's west coast this weekend, before traveling on Monday to a golf property in Aberdeen, where he will open a second 18-hole course named in honor of his mother, Mary Anne MacLeod. MacLeod was born and raised on a Scottish island before emigrating to the U.S. As he left the White House, Trump said he looked forward to meeting both Starmer and Scottish leader John Swinney, who had publicly backed Democratic candidate Kamala Harris in the 2024 U.S. presidential election. The trip provides Trump and Starmer with an opportunity to strengthen their already warm ties, with key issues on the agenda, including ending Russia's war in Ukraine, according to British and U.S. sources. The deteriorating situation in Gaza is also likely to come up. Starmer on Thursday said he would hold an emergency call with France and Germany over what he called the "unspeakable and indefensible" suffering and starvation being reported there, and called on Israel to allow aid to enter the Palestinian enclave. Gaza health authorities say more than 100 people have died from starvation, most in recent weeks. Human rights groups have said mass starvation is spreading even as tons of food and other supplies sit untouched just outside the territory. Since being elected last year, Starmer has prioritized good relations with Trump, stressing the importance of Britain's defense and security alliance with the U.S., while working to clinch the first tariff-reduction deal with the U.S. in May. The framework agreement reaffirmed quotas and tariff rates on British automobiles and eliminated tariffs on the UK's aerospace sector, but left steel tariffs in place. Starmer is expected to press for lower steel tariffs, but sources close to the matter said it was unclear if any breakthrough was possible during Trump's visit. Trump has described Scotland as a "very special place" and made a similar trip there in 2016 during his earlier presidential run, but he will not necessarily receive a warm welcome. About 70% of Scots hold an unfavorable opinion of Trump, while 18% have a favorable opinion, according to an Ipsos poll conducted in March. Scottish police are gearing up for protests on Saturday in both Aberdeen and Edinburgh, the country's capital. Trump will return to Britain from Sept. 17-19 for a state visit hosted by King Charles. It will make Trump the first world leader in modern times to undertake two state visits to the United Kingdom. The late Queen Elizabeth hosted him at Buckingham Palace for a three-day state visit in June 2019.
Chicago Tribune
33 minutes ago
- Chicago Tribune
The Tribune's Quotes of the Week quiz for July 26
It was another hot and humid week in Chicago. With dangerous heat engulfing the city, residents again turned to box fans and AC units for relief from the soaring temps — that is despite recent spikes in electric costs. The heat subsided only to welcome thunderstorms that knocked out power for 50,000 ComEd customers. But it wasn't all doom and gloom this week. After years of construction, four North Side Red Line stations reopened Sunday, and in some good news for homeowners, Mayor Brandon Johnson said he won't seek a property tax hike in his upcoming budget proposal. Gov. JB Pritzker, along with 17 other Democratic governors, petitioned the Trump administration to release nearly $7 billion in withheld federal education grants. On Friday, the Department of Education did just that. But local education leaders are still struggling with their own funding problems. At Thursday's Chicago Board of Education meeting, Chief Budget Officer Michael Sitkowski reiterated that Chicago Public Schools has identified $165 million in spending reductions, including cuts to its administrative staff and vendor contracts, but the district is still searching for a solution to its $734 million budget deficit. Two of the four defendants in the 'ComEd Four' case were sentenced this week. Ex-ComEd CEO Anne Pramaggiore and the utility's former lobbyist Michael McClain will spend two years in prison for their part in the elaborate scheme to bribe then-House Speaker Michael Madigan. New Tribune reporting shows arrests by U.S. Immigration and Customs Enforcement are up in Chicago since President Donald Trump took office, and local children recently received deportation letters from the Department of Homeland Security. Meanwhile, on Friday, a federal judge in Chicago blocked the Trump administration's challenge over sanctuary policies in the state of Illinois. In global news, the United States cut short ceasefire talks between Israel and Hamas on Thursday, while hunger and malnutrition surges in Gaza. France also announced this week that the country will recognize Palestine as a state. Three big names in the world of celebrity and entertainment passed away this week. Malcolm-Jamal Warner, the 54-year-old actor best known for his role as teenage son Theo Huxtable on 'The Cosby Show,' died in an accidental drowning Sunday in Costa Rica. Ozzy Osbourne, lead singer of Black Sabbath and godfather of heavy metal, died at the age of 76, just weeks after his farewell show. And professional wrestling legend Hulk Hogan died Thursday after suffering cardiac arrest. He was 71. Plus, the Chicago Cubs and White Sox play each other in this weekend's City Series at Rate Field. It's a matchup with stakes for both teams, as the Sox come off their best roadtrip since September 2022 and the Cubs just dropped from first place in their division. That's it for the headlines! Now here's the Tribune's Quotes of the Week quiz for July 20 to 26. Missed last week? You can find it here or check out our past editions of Quotes of the Week.
