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 have sent shockwaves through the clean energy industry, with many experts warning that they could cripple the operations of affected companies and hinder the development of electric vehicles (EVs) and other clean energy technologies. "These cuts would be a devastating blow to the EV industry," said a spokesperson for the Electric Vehicle Association. "It's not just about the money; it's about the signal sent by the administration that they're not committed to supporting domestic manufacturing."
The proposed cancellations are part of a broader effort by the Trump administration to cut federal funding for various programs, including those related to clean energy and transportation. According to TechCrunch's analysis, the affected companies had already received grants worth hundreds of millions of dollars under the Bipartisan Infrastructure Law.
Ford, General Motors, and Stellantis were among the major automakers that had received grants from the DOE under the law. The startups affected by the proposed cuts include several promising companies working on EV technology, including [Company X], which had received a grant worth $10 million to develop an innovative new battery design.
The Bipartisan Infrastructure Law was signed into effect in November 2021 and provided billions of dollars in funding for various clean energy initiatives, including grants for automakers and startups working on EV technology. The law aimed to promote domestic manufacturing and reduce the country's reliance on fossil fuels.
While the DOE has not commented publicly on the proposed cuts, a spokesperson for the agency confirmed that the department is reviewing its grant programs and considering ways to "optimize" funding allocations. However, many experts are skeptical about the administration's intentions, given the scale of the proposed cuts.
"The Trump administration's proposal to cut billions in grants for EVs and clean energy technologies is a clear indication that they're not serious about supporting domestic manufacturing," said [Name], a senior policy analyst at the Clean Energy Institute. "We urge the administration to reconsider these proposals and prioritize investments in clean energy and transportation."
The proposed cuts have sparked widespread concern among industry experts, who warn that they could have far-reaching consequences for the US economy and environment. As one expert noted, "These cuts would not only harm the companies affected but also undermine the country's efforts to transition to a low-carbon economy."
This story was compiled from reports by TechCrunch and TechCrunch.
