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. Meanwhile, subsidies for wind and solar energy are being reduced. The Office of Energy Dominance Financing (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. One notable cancellation is a $4. 9 billion loan for the Grain Belt Express project. This project aimed to transmit power from wind and solar farms to cities in the Midwest and East.The EDF has also eliminated about $9. 5 billion in loans for wind and solar projects. Instead, they are supporting new capacity at natural gas and nuclear power plants. Additionally, they are revising another $53. 6 billion in loans. 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 mentioned in November that the remaining loans will mainly boost nuclear power. Other priorities include coal, oil, gas, critical minerals, geothermal, the power grid, and manufacturing and transportation. This shift in energy loans raises questions. Is this the right path for the U. S. ? Only time will tell.