As President-elect Donald Trump prepares to take office, the Biden administration is speeding up efforts to approve over $25 billion in green energy loans. The loans, set to fund electric vehicle (EV) battery plants and other green energy projects, are being fast-tracked by the Department of Energy (DOE) despite concerns from lawmakers that this hurried pace could lead to waste and fraud.
The DOE’s Loan Programs Office is responsible for distributing these loans, with a total of 16 pending loans worth $25.1 billion still up for approval. In the past two months, seven loans worth $5.9 billion have been finalized, a sharp increase compared to the previous 27 months, when only five loans totaling $6.5 billion were closed. This increased pace has raised alarms among Republican lawmakers, who fear that the funds are being rushed out the door to politically connected firms.
Sen. John Barrasso (R-Wyo.) and Rep. Cathy McMorris Rodgers (R-Wash.) have expressed concerns that this accelerated pace of funding could result in wasteful spending, similar to the failed Solyndra solar panel project that received $535 million in government-backed loans before filing for bankruptcy. Barrasso accused the Biden administration of prioritizing green energy projects for political gain, and McMorris Rodgers warned of the risks of taxpayer dollars being misused.
While the Biden administration defends its green energy investments, pointing to job creation and a cleaner energy future, critics argue that the rush to approve these loans compromises accountability. Many of the projects are seen as high-risk, and the rapid approval of loans increases the likelihood of poor investments. With Trump’s stated goal of cutting green energy spending, the pending loans could be subject to significant scrutiny once he assumes office.
Trump has vowed to roll back green energy subsidies, a promise that could affect these loans. The incoming administration is expected to review and potentially cancel or audit projects that were fast-tracked in the final months of Biden’s term. This has led to calls for a temporary halt to new loan approvals until the incoming administration can thoroughly assess the projects already in the pipeline.
As the Biden administration scrambles to finalize the loans, the debate over the future of U.S. energy policy intensifies. The transition period will likely see significant pushback from Republicans and industry groups, with the green energy loan program at the center of the political and legal battles to come.
