The U.S. Department of Energy (DOE) has announced the termination of 321 financial awards supporting 223 energy projects — a move officials say will save taxpayers roughly $7.56 billion. The decision follows a department-wide review aimed at cutting what it calls “financially unviable” or “insufficiently justified” projects approved under previous administrations.

Secretary of Energy Daniel Wright said the action fulfills President Trump’s pledge to protect taxpayer dollars while prioritizing “affordable, reliable, and secure energy.” Many of the terminated projects, according to DOE, were rushed through in the final months of the Biden administration, with 26% of them awarded between Election Day and Inauguration Day.

“These cancellations reflect our commitment to fiscal responsibility and energy security,” Wright said. “We’re ensuring that every federal dollar advances America’s core energy needs.”

But not everyone agrees with the DOE’s approach. Critics within the clean energy sector warn that the cancellations could slow momentum in renewable innovation, grid modernization, and manufacturing supply chain resilience — areas that require long-term federal support to scale. Some affected researchers and companies have already filed appeals, arguing that many of the projects cut were multi-year efforts showing promising early results but hadn’t yet reached commercial viability.

Energy policy analysts also note that while fiscal oversight is necessary, abrupt terminations can disrupt partnerships, workforce pipelines, and private-sector confidence in federal collaboration.

DOE maintains that all decisions were made following a detailed, case-by-case review process established earlier this year. Under the department’s new “Ensuring Responsibility for Financial Assistance” policy, awardees have 30 days to appeal termination decisions — and several already have.

The outcome could shape how future administrations balance accountability with innovation in America’s fast-evolving energy landscape.