Illustration: Shoshana Gordon/Axios
The White House budget released Friday would eliminate $15 billion in DOE infrastructure law funding and cancel EPA grants and revolving loan programs.
Why it matters: President Trump's budget proposal is the administration's first official blueprint for congressional Republicans seeking to roll back climate programs.
- Congress would have to codify the proposal, which includes funding cuts sought by Elon Musk's DOGE team that have thrown federal employees out of work and targeted specific energy projects.
What's inside: The budget proposal would cancel $15 billion in the DOE's unspent IIJA funding and cut $2.6 billion from its Energy Efficiency and Renewable Energy office.
- It would cut $1.1 billion from DOE's Office of Science, ending studies on climate change and other "Green New Scam research."
- It also would scrap a DOE program designed to finance projects to build CO2 pipelines — a key pinch point in developing carbon capture and storage.
The budget proposes to eliminate nearly $2.5 billion from the EPA's Clean and Drinking Water State Revolving Loan Funds — roughly 90% of its budget.
- The cuts would return the program to its intended design as seed money for states to set up their own water infrastructure loan programs, the White House fact sheet said.
- The program has become "heavily earmarked by the Congress for projects that are ultimately not repaid into the program and bypass states' interest and planning," it said.
- The budget also proposes cancelling 16 categorical grants worth $1 billion, terminating the agency's environmental justice program, and ending grants to environmental groups.
- The White House cited the Natural Resources Defense Council as an example, but the group says it doesn't receive government funding.
At Interior, the budget would eliminate $80 million for renewable energy programs.
- It would end BLM's conservation programs, including funding that went to the National Environmental Education Foundation to teach children about climate change.
The big picture: The budget takes a deep dive into dismantling Biden-era energy programs and the Justice40 initiative, which aimed to direct at least 40% of the benefits to disadvantaged communities.
- ARPA-e, the DOE's advanced research office, was trimmed by $260 million to root out research to reduce air travel and expand electric vehicles.
Reality check: Congress never approves a president's exact budget as proposed — although Trump's proposal could carry more weight than usual since Republicans control both chambers of Congress.
- The proposed zeroing out of programs and widespread cancellation of grants and loans will spark Democratic opposition and could cause Republicans some heartburn.
- Eight House Republicans and 19 Senate Republicans voted for the IIJA in 2021.
- Some Republicans have fought to keep funding flowing to their districts, while others have said they're open to codifying DOGE cuts.
What we're watching: Budget hearings on the Hill that are expected as soon as next week.
Editor's note: This story has been corrected to note that the Natural Resources Defense Council says it does not receive government funding, although the White House listed it as an example of grants that would be ended.
