Trump administration to cancel $645 million worth of grants for climate-related projects in Minnesota
In the hours after the federal government shut down on Wednesday, the Trump administration announced it would cancel nearly $8 billion in climate projects in more than a dozen states, including Minnesota.
The number of grants impacted totals $645 million in Minnesota, according to a statement from Democratic U.S. Sen. Tina Smith's office.
Among the projects her office said were affected include $464 million to build new electrical transmission lines connecting Minnesota and other Midwest states, $50 million to upgrade an electrical transmission line between Minnesota and North Dakota, and $1.7 million for research to ensure solar projects save money.
The U.S. Department of Energy provided WCCO a list of the funding recipients across all 16 states expected to see the cuts. Xcel Energy is among them. A spokesperson said the utility company is still evaluating the impact, but it did receive confirmation that a future iron-air battery plant to store renewable energy like solar and wind in Becker, Minnesota, had been canceled. That award totaled $70 million.
In an interview on CNN, Energy Secretary Chris Wright said the decisions about where to slash the grants were made over the last few months, even though the announcement came Wednesday, the day the first government shutdown since 2018 began.
"A team of seven or eight people have evaluated over 2,400 projects on business conditions and whether it makes sense for the American taxpayers or not," Wright said.
The Minnesota Department of Commerce was also on the list. A spokeswoman said the agency did not get any official notice from the Department of Energy about the termination of funding, but that if it is true, it would "represent an unprecedented and politically motivated breach of federal law and funding norms."
"Without these investments, Minnesota could face higher energy prices, slower infrastructure development, and increased burdens on low- and middle-income households — all while demand for clean, affordable energy continues to grow," a statement from the state's commerce department said.
U.S. Rep. Tom Emmer, the Republican majority whip who represents Minnesota's Sixth District, told reporters Friday that the administration has to make tough decisions during the government shutdown and blamed Democrats for letting it happen.
The GOP-led House approved a continuing resolution in September to keep funding at current levels. But both parties are at an impasse over a funding measure in the Senate, where there is a 60-vote threshold to move forward. Republicans have 53 votes in the chamber.
Emmer suggested the funding could be restored when the shutdown ends.
"They're going to have to put the American people first. If they do that, I think Minnesotans will be pleased, and a lot of these projects will be back on the board," he said.
All of the states seeing funding rescinded, including Minnesota, were states won by Vice President Kamala Harris in the 2024 presidential election.
Gov. Tim Walz, a Democrat, called it "outrageous."
"This whole idea that they see states as Democrats and Republicans, or they see areas as red or blue, is simply the most egregious violation of their oath. You have a responsibility to give your best for people who vote against you," Walz said Thursday.