The US Energy Department has terminated a pending $4.9 billion loan guarantee for the Grain Belt Express project, one of the nation’s largest power line projects aimed at transmitting wind energy from Kansas to Indiana. The decision follows a thorough review of the project’s financials and comes as the Trump administration seeks to undermine clean energy development in the US.
The 11-billion-dollar project aims to carry 5-gigawatts of power across four regional grids, providing much-needed interregional transmission capacity. However, the Energy Department has deemed the conditions necessary for the loan guarantee “unlikely to be met,” and it does not believe the federal government should have a role in supporting the project.
The termination is seen as part of the Trump administration’s broader strategy to limit wind and solar development. The administration has recently introduced an executive order limiting tax incentives for these projects, while also outlining plans to dominate the global artificial intelligence race.
The move has been welcomed by Missouri GOP Senator Josh Hawley, who had urged the administration to cancel the financing. Hawley had opposed the project due to its use of eminent domain on farmland and called the loan guarantee a “boondoggle.” The Energy Department’s decision is part of a broader review of its portfolio, aimed at ensuring that taxpayer dollars are used to advance the best interests of the American people.
As the Trump administration seeks to dominate the global AI race, it has taken steps to undermine clean energy development in the US. The Grain Belt Express project had been expected to break ground next year and provide much-needed transmission capacity. However, its future now hangs in the balance, as the Energy Department continues to review its portfolio and assess the viability of future projects.
Source: https://www.politico.com/news/2025/07/23/trump-energy-department-loan-cancelation-00469582