Despite the failure to cut the Department of Government Efficiency spending and the president’s support for a bill that would add $2.4 trillion to the federal deficit over the next decade, several wasted government projects have been cut under the Trump administration.
Energy Secretary Chris Wright Recently cancelled 24 grants approved by the Energy Department under former President Joe Biden. The action has earned more than $3 billion in savings. The lights at the beginning of May I’ve got an additional $7 billion x of a green energy loan approved by Biden.
Unfortunately for taxpayers, the savings identified by Wright are nothing more than a reduction in the bucket of wasted spending approved by the Biden Energy Division. Here are five of the worst examples:
December 2024, Energy Division Loan Program Office (LPO) Closed A $9.63 billion direct loan to Blueoval SK LLC, a joint venture between Ford and South Korean conglomerate SK. The loan was approved to “construct three manufacturing plants, and to produce batteries for the Ford Motor Company’s future Ford and Lincoln electric vehicles. [E.V.s],’ According to To announce the award.
Blueoval has begun or completed construction of these facilities. Construction in the western part of the country called Blueoval City in western Tennessee and two in Hardin County, Kentucky, known as Kentucky 1 and 2.
In addition to allocating a multi-million dollar tax credit for its right to house the city of Bruval, the Tennessee legislature also established a megasite authority in West Tennessee. Report reasonJoe Lancaster. The Board was authorized to carry out contracts on behalf of the development, including the authority to seize private property through prominent domains. In most cases, the board cut down local property owners, including Ray Jones, who was offered “just $8,165” on the acres, despite being $200,000 per acre. There is No date set For when the plants open.
Kentucky 1 faces many occupational safety and health complaints from workers. a review from Courier Journal “Dozens of workplace injuries, hospitalizations related to respiratory problems, unwavering mold contamination, bat-infected training facilities, emergency exit door blockages, and risk of exposure to chemicals.” ” The state has begun researching plants. schedule Production will begin later this year. Kentucky 2’s opening is indefinitely late. Michael Adams, CEO of Blueoval SK. recently He told WDRB that the opening date of the factory will be a market decision, but “the market is telling us that Kentucky 2 is not ready.”
The Bipartisan Infrastructure Act, passed in 2021, created a new office within the energy sector known as the Clean Energy Demonstration Bureau (OCED). One of the program’s biggest beneficiaries is Exxon Mobil.
That’s what the oil major was like Granted A $332 million grant from OCED to “enable the use of hydrogen in place of natural gas” at a fiber and plastics facility in Baytown, Texas. At the time of the announcement, the Biden administration said the project would prevent 2.7 million tonnes of carbon emissions per year. It’s an interesting technique, but the project didn’t require taxpayer support. In the same year when Exxon received this payment (2024), the company was It has been reported Earnings of $33.7 billion per year. Funding for the project was cancelled by Wright on May 30th.
The industry was inevitably free from corporate welfare under the Biden administration, which included seasonings. In October 2024, Kraftheinz was like that. Granted A grant of up to $170 million from Oced. The award was intended to fund energy efficiency upgrades, heat pumps and electric boilers installations, and renewable energy technologies at the company’s 10 facilities.
The grant was also cancelled on May 30th. Craft Heinz say This will continue to invest in upgrades to 30 manufacturing facilities and invest $3 billion over the next five years to “modernize” the domestic supply chain infrastructure.
October 2024, LPO announcement A $2.26 billion direct loan to Lithium Nevada Corp., a subsidiary of Lithium Americas Corp., will build a facility to produce lithium carbonate, a key component of EV batteries. The facility will acquire lithium next to it from Thacker Pass, Nevada’s mining site, which is estimated to have the world’s largest lithium reserves.
The US is mainly I’ll rely on you About imports to meet lithium needs. These facilities can reduce this dependency, but that doesn’t mean that the loan will not be wasted. Demand for lithium and lithium carbonate is expected to rise significantly in the coming decades as green technology uses increase. In 2024 alone, demand for metals I’ve grown 30%.
Lithium America is hoping for a mine Construction began in Februarygenerates $2.2 billion a year Annual revenue. Taxpayers don’t have to spend billions of dollars to support projects that the market believes will be successful.
One of the largest steelmakers in the United States was another beneficiary of federal funds during the Biden era. 2024, Cleveland Cliffs Generate That year, revenue was $19.2 billion Granted A grant of up to $575 million (still active) from the energy sector.
One of these awards, up to $500 million, will implement hydrogen fuel in the steel manufacturing process and install two electromelt furnaces at its Middletown plant facility in Ohio. The project is expected to reduce greenhouse gas emissions at the factory by 1 million tons per year. I received it $9.5 million payments in September 2024.
The second grant, worth up to $75 million, will impress the Cleveland-Cliffs facility in Butler, Pennsylvania, producing steel for conversions, motors and generators. This project got a $19 million payments August 2024. company say These projects are scheduled to be published before 2030.
Wright canceled some of the most wasted projects approved under Biden, but federal support for positive energy projects doesn’t end under the Trump administration. Washington Free Beacon Report The energy sector is considering funding Alaska’s $44 billion pipeline.
