The Trump administration announced the cancellation of nearly $8 billion in climate-related projects amid the federal government shutdown, calling the initiatives part of a “Green New Scam” funded by taxpayer dollars. Office of Management and Budget (OMB) Director Russ Vought stated the cuts targeted programs advancing what he described as the Left’s climate agenda, listing states including California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, New York, New Mexico, New Jersey, Oregon, Vermont, and Washington. Most of these states are governed by Democratic leaders, with the exception of New Hampshire and Vermont.

The move follows a separate decision to pause approximately $18 billion in infrastructure projects in New York City, including the Hudson Tunnel and Second Avenue Subway, which were halted “to ensure funding is not flowing based on unconstitutional DEI principles,” Vought said. The Department of Transportation revealed it had placed these projects under administrative review to assess potential violations of constitutional standards, though the process has been delayed due to the shutdown. “Without a budget, the Department has been forced to furlough the civil rights staff responsible for conducting this review,” officials noted.

The U.S. Department of Energy (DOE) also terminated 321 financial awards supporting 223 projects, saving an estimated $7.56 billion. Secretary of Energy Chris Wright claimed the cancellations aligned with President Trump’s pledge to prioritize taxpayer dollars and expand affordable energy production. California’s hydrogen hub, ARCHES, which had secured $1.2 billion in Biden-era funding, was among the affected programs.

California Governor Gavin Newsom criticized the cuts, accusing the administration of prioritizing “the highest bidder, economics and common sense be damned,” while vowing to advance clean energy initiatives despite federal restrictions.