The Biden administration is racing to finalize $25 billion in green energy loans before President-elect Donald Trump takes office. These loans, which are part of the administration’s push to accelerate the transition to cleaner energy, have sparked concerns from critics who warn that this rushed effort could lead to financial mismanagement and taxpayer waste.
The Department of Energy (DOE) has been working quickly to approve these loans, including those for electric vehicle battery plants and other renewable energy projects. Over the last two months alone, the DOE has finalized seven loans worth $5.9 billion, far more than the $6.5 billion in loans it approved over the previous 27 months. The quickening pace has drawn criticism from Republican lawmakers who argue that it raises the risk of fraud and abuse, especially with Trump poised to take office and possibly reverse many of Biden’s energy policies.
Senate Energy Committee ranking member John Barrasso (R-Wyo.) expressed concerns that the Biden administration is “rushing to distribute billions to politically connected firms” without proper oversight. House Energy and Commerce Committee Chairwoman Cathy McMorris Rodgers (R-Wash.) echoed these concerns, warning that the fast-tracking of these loans could lead to a repeat of the Solyndra scandal, a 2011 bankruptcy that resulted in the loss of $535 million in taxpayer money.
While the administration defends its push, citing job creation and the potential for clean energy benefits, critics argue that the loans are being pushed through without adequate scrutiny. The increase in the number of loan approvals in the final months of Biden’s term has raised alarms among those who believe these projects are high-risk and unlikely to deliver long-term value.
Trump’s administration is expected to review these loans once he takes office, with many speculating that his team will halt further green energy investments. Trump’s campaign platform included cutting green energy subsidies and halting many of the initiatives started under Biden, including investments in electric vehicle infrastructure and renewable energy.
The fate of these loans will likely be one of the first major issues for Trump’s administration to address. While Biden’s team pushes to finalize these projects, the incoming administration will likely scrutinize them to ensure taxpayer dollars are not spent on high-risk ventures. This push for accountability will shape the early stages of Trump’s presidency and set the tone for future energy policy.
