Trump Administration Proposes Billions in Cuts to Electric Vehicle Grants, Threatening Domestic Manufacturing
The US Department of Energy (DOE) has proposed massive cuts to billions of dollars in federal grants awarded to over a dozen promising startups and major automakers, including Ford, General Motors, and Stellantis, under the Bipartisan Infrastructure Law. According to an internal document obtained by TechCrunch, the proposed cancellations would eliminate more than $500 million in contracts, on top of previously announced cuts of over $7.5 billion.
The proposed cuts are part of a larger effort by the Trump administration to reduce federal spending, and they could have significant implications for the development of electric vehicles and other clean energy technologies. The affected companies had received grants under the Bipartisan Infrastructure Law, which was signed into effect in November 2021 with the goal of promoting domestic manufacturing and reducing greenhouse gas emissions.
The proposed cancellations would affect not only startups but also major automakers like Ford, General Motors, and Stellantis, which have invested heavily in electric vehicle technology. According to a TechCrunch analysis, the cuts could cripple the operations of affected companies and potentially harm the US economy. "These cuts are a huge blow to the development of electric vehicles and clean energy technologies," said an industry expert who wished to remain anonymous. "The government's support is crucial for startups and automakers to innovate and compete in the global market."
The proposed cancellations come on top of previous cuts announced by the Trump administration, which had already targeted over $7.5 billion in contracts. The affected companies had received grants ranging from a few million dollars to hundreds of millions of dollars, with many of them still in the early stages of development.
The DOE has not yet commented publicly on the proposed cancellations, but industry experts are sounding the alarm about the potential consequences. "These cuts will not only harm the companies that receive the grants but also the entire ecosystem of startups and small businesses that rely on government support to innovate," said another expert who wished to remain anonymous.
The current status of the proposed cuts is unclear, as the DOE has yet to announce a timeline for implementation. However, industry experts are warning that the cuts could have far-reaching consequences for domestic manufacturing and the development of clean energy technologies. As one expert noted, "The government's support is crucial for startups and automakers to innovate and compete in the global market. These cuts will only make it harder for them to succeed."
Background
The Bipartisan Infrastructure Law was signed into effect in November 2021 with the goal of promoting domestic manufacturing and reducing greenhouse gas emissions. The law provided billions of dollars in grants to startups and major automakers to support the development of electric vehicles and clean energy technologies.
Reactions from Industry Experts
Industry experts are sounding the alarm about the potential consequences of the proposed cuts. "These cuts will not only harm the companies that receive the grants but also the entire ecosystem of startups and small businesses that rely on government support to innovate," said an industry expert who wished to remain anonymous.
"The government's support is crucial for startups and automakers to innovate and compete in the global market. These cuts will only make it harder for them to succeed," added another expert who wished to remain anonymous.
Next Steps
The current status of the proposed cuts is unclear, as the DOE has yet to announce a timeline for implementation. However, industry experts are warning that the cuts could have far-reaching consequences for domestic manufacturing and the development of clean energy technologies. As one expert noted, "We urge the government to reconsider these cuts and provide continued support for startups and automakers working on electric vehicles and clean energy technologies."
This story was compiled from reports by TechCrunch and TechCrunch.
