The Department of Energy has canceled its conditional $4.9 billion loan guarantee for the Grain Belt Express Phase 1, a planned high-voltage transmission line across Kansas and Missouri. Initially approved in November 2024, the project was deemed unlikely to meet its financial requirements and was not considered essential for federal support. The move is part of a broader DOE review of nearly $100 billion in loans and commitments made between the 2024 election and 2025 inauguration, aiming to ensure responsible use of taxpayer funds and reduce lending risk while promoting reliable, affordable energy. They write:
The Department of Energy (DOE) today announced the Loan Programs Office (LPO) has terminated its conditional commitment for the Grain Belt Express Phase 1 project, a high-voltage direct current (HVDC) transmission line intended to connect wind and solar capacity across Kansas and Missouri. The conditional commitment, which would have provided a taxpayer-funded loan guarantee of up to $4.9 billion dollars, was issued by the Biden administration in November 2024 โ one of many conditional commitments that were rushed out the door in the final days of the Biden administration.
After a thorough review of the projectโs financials, DOE found that the conditions necessary to issue the guarantee are unlikely to be met and it is not critical for the federal government to have a role in supporting this project. To ensure more responsible stewardship of taxpayer resources, DOE has terminated its conditional commitment.
DOE is conducting a review of every applicant and borrower โ including the nearly $100 billion in closed loans and conditional commitments LPO made between Election Day 2024 to Inauguration Day 2025 โ to ensure every single taxpayer dollar is being used to advance the best interest of the American people. This ongoing review positions LPO to move forward with a lower risk tolerance in lending practices and an uncompromising focus on expanding access to affordable, reliable and secure energy for the American people.
DOE remains focused on advancing projects that expand American energy dominance and deliver on President Trumpโs commitment to lower energy prices for the American people.
Read more here.
