The Biden administration is working quickly to approve more than $25 billion in green energy loans before President-elect Donald Trump takes office in January. The loans, aimed at supporting electric vehicle (EV) battery production and other green energy projects, are being fast-tracked through the Department of Energy’s Loan Programs Office, raising concerns about the potential for financial mismanagement and waste.
In just the past two months, the DOE has closed seven loans worth $5.9 billion, significantly increasing the pace of loan approvals. This fast pace is in stark contrast to the earlier part of Biden’s term, when only five loans totaling $6.5 billion were approved over 27 months. Critics, including Republican lawmakers, argue that the rush to finalize these loans increases the risk of fraud and waste, particularly with the incoming Trump administration likely to reverse many of Biden’s green energy initiatives.
Sen. John Barrasso (R-WY) and Rep. Cathy McMorris Rodgers (R-WA) have both voiced concerns that the Biden administration is pushing funds to politically connected companies without proper oversight. Barrasso has warned that the increased loan activity is a “last-minute push” to favor certain firms, while McMorris Rodgers cautioned that the rush could lead to another Solyndra-style failure, a reference to the solar company that received a government loan and later went bankrupt.
While the Biden administration argues that these loans are essential to fostering clean energy innovation and job creation, critics contend that the rapid approval process undermines accountability. The Department of Energy’s Loan Programs Office, which has received billions in funding from the Inflation Reduction Act, has been responsible for administering these loans. However, its track record with high-risk projects has led to skepticism about the effectiveness of these loans.
As Trump prepares to take office, many Republicans are pushing for a halt to these green energy loans, arguing that the rush to approve them is reckless. Trump’s administration is expected to review these loans once he is in office and may take action to cancel or audit the projects approved in the final months of Biden’s presidency.
The battle over these green energy loans is expected to continue as Trump’s team takes charge. Whether the loans are allowed to proceed or face scrutiny will likely have significant implications for the future of U.S. energy policy.
