As President-elect Donald Trump’s inauguration approaches, the Biden administration is working swiftly to finalize over $25 billion in green energy loans. This accelerated pace has raised concerns among lawmakers and industry experts, who warn that the rapid push to approve loans could lead to wasteful spending and potential fraud.
The Department of Energy’s Loan Programs Office, which has been integral in funding various green energy projects, is rushing to close 16 pending loans worth $25.1 billion before Trump takes office. The speed at which these loans are being finalized has drawn criticism, especially as Trump has pledged to end much of the green energy spending initiated by the current administration. In the past two months, the office has closed seven loans, totaling $5.9 billion, including two major loans for electric vehicle (EV) battery plants in Michigan and New York. By comparison, only five loans worth $6.5 billion were closed over the previous 27 months.
Republican lawmakers, including Senate Energy and Natural Resources Committee Ranking Member John Barrasso (R-Wyo.) and House Energy and Commerce Chairwoman Cathy McMorris Rodgers (R-Wash.), have expressed concerns about the rush to approve these loans. Barrasso has accused the Biden administration of distributing funds to politically connected companies without adequate oversight. He warned that the fast-tracking of these loans increases the risk of waste and corruption, recalling the infamous Solyndra scandal, where a solar panel company went bankrupt after receiving government-backed loans.
The Solyndra debacle, which cost taxpayers $535 million, has become a cautionary tale for critics of government-backed green energy spending. The loans approved by the Department of Energy have often been controversial, with critics arguing that the projects lack long-term viability. The fast-paced approval of these loans, critics argue, is a clear sign that the administration is prioritizing its green energy agenda over ensuring that taxpayer dollars are being spent wisely.
With Trump set to assume office in January, many expect his administration to reassess these pending loans. Trump has repeatedly promised to eliminate green energy subsidies and investments as part of his broader energy policy. Republicans, including industry experts like Tom Pyle, have urged Trump to halt any new loans and audit the projects already approved, especially those rushed through in the final months of the Biden administration.
As the transition of power nears, the fate of these loans remains uncertain. Republicans are calling for a halt to new loan commitments, while the Biden administration is pushing to finalize them quickly. This clash over energy policy and spending priorities is likely to set the stage for the coming months of the Trump presidency, with green energy initiatives at the center of the debate.
