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Trump is blocking billions of dollars of grants that would fix the grid

Two people sit at a table with a microphone and the presidential seal, in front of a blue backdrop reading "Ratepayer Protection Pledge."
Reading Time: 7 minutes

In Wisconsin, utility Alliant Energy has called off a project meant to reduce power outages in disadvantaged and tribal communities after the Trump administration terminated a federal grant that would have supported it.

In California, the Sacramento Municipal Utility District, which has deployed and upgraded hundreds of thousands of advanced smart meters, has not received any reimbursement from the U.S. Department of Energy for the work since October, when the Trump administration declared it was killing grants that it described as fueling ​“the Left’s climate agenda.”

And in the upper Midwest, a consortium of regional grid operators, utilities and state agencies is still waiting for $464 million in DOE funds meant to help build high-voltage transmission lines to reduce grid congestion — although the agency in charge of the project says the funding will soon be restored.

Across the country, hundreds of such projects to improve grid reliability and make electricity more affordable face a highly uncertain future — the result of Trump administration actions that have slowed the outflow of billions of dollars of DOE funds to a trickle.

Some of those projects in ​“blue states” were targeted as political retribution, as recent reporting from The New York Times has made clear. A handful of grant awardees in this category have won favorable court rulings, and more are seeking legal redress.

But many others are suffering from the DOE’s broader failure to carry out work that Congress has tasked it to do, according to groups that have been monitoring the agency since the start of last year. In red and blue states alike, the DOE is forcing thousands of grantees to undergo a laborious review process, so even projects that have not been officially terminated are stuck, unable to determine when or if they’ll start getting the money they’re owed.

According to an April report from the DOE Alumni Network, a group of former agency employees, the DOE has announced the termination of 356 awards totaling $12.5 billion since January 2025 and has threatened to terminate 303 additional awards worth $12.2 billion.

But the DOE has also stalled projects for ​“a large number of awardees who have never appeared on any list,” the report found. ​“This means the agency is not moving forward to resolve disputes, finalize conditional awards, or respond to continuation applications, leaving projects in administrative limbo and functionally freezing promised funds.”

“DOE both overtly canceled a set of projects, then had this pattern of behavior where for 15 months they stopped actively managing projects,” said one former DOE official. ​“Projects can’t proceed to the next stages and get their next tranche of funding.”

The former official, who asked not to be named, described a pattern of stalling, stonewalling and ​“ghosting” utilities, state governments, energy companies, and nonprofit groups awarded grants under the Biden administration.

Many of those projects have been caught up in a process the DOE announced in May 2025 to review all financial assistance ​“on a case-by-case basis to identity (sic) waste of taxpayer dollars, protect America’s national security and advance President Trump’s commitment to unleash affordable, reliable and secure energy for the American people.”

Then, in October, the DOE announced the ​“termination of 321 financial awards supporting 223 projects” — all of them tied to states that voted for Kamala Harris in the 2024 election. The DOE’s termination announcement came right after Russ Vought, director of the White House Office of Management and Budget, declared in a social media post that the administration would cancel ​“nearly $8 billion in Green New Scam funding.”

Canary Media reached out to a subset of DOE grantees that had won funding from the Grid Resilience and Innovation Partnerships (GRIP) program created by the 2021 bipartisan infrastructure law. The DOE issued a total of more than 100 GRIP grants — in October 2023August 2024 and October 2024 — for projects to enlarge the grid, harden it against extreme weather, build microgrids to protect vulnerable communities, and deploy technologies to integrate solar, wind, EVs, and batteries.

Some of the GRIP projects involve expanding clean energy and serving disadvantaged communities, two bugbears of the Trump administration. But many more are straightforward grid improvement projects that need federal dollars to reduce the costs borne by utilities and regional or state agencies.

The largest of these is in California. In 2024, the DOE awarded a $630.6 million grant aimed at upgrading more than 100 miles of high-voltage power lines in the state with advanced power cables capable of carrying more electricity along existing transmission corridors, a project estimated to be capable of delivering about $200 million in savings from improved energy efficiency. That project appeared on the termination list in October, and the DOE has not disbursed money for it, according to federal records, though negotiations for resuming funding are underway.

This uncertainty appears to apply to the majority of GRIP projects, according to Emlyn Bottomley, founder of the consultancy High Road Analytics, which focuses on workforce development, and a former Department of Labor deputy policy director in the Biden administration.

According to his tracking of federal spending, of the roughly $11.4 billion in DOE funds obligated to grid infrastructure and resilience — a category that includes GRIP program funds — $9.1 billion remains ​“at risk,” with funding stalled or timelines for completion shortened. That’s compared with $400 million in grants that have been canceled outright and $1.3 billion not yet disbursed but showing no signs of being stalled.

“It’s a shame these projects are being held up or canceled, especially since the case for them is fairly bipartisan — spanning national security, economic competitiveness, and cost and affordability,” Bottomley said.

All of the GRIP projects required partners to provide matching funds at an amount at least equal to the money DOE is providing, the former DOE official added. ​“You’re talking about folks putting hundreds of millions of dollars on the line. People have skin in the game for these awards.”

The costs of losing federal funding

Many of the GRIP grantees contacted by Canary Media declined to comment, citing ongoing discussions with DOE. Others reported that they are no longer pursuing the projects as described in their grant applications, at least not with the help of DOE money.

The latter is the case for Alliant Energy’s Smart Power Automation in Rural Communities (SPARC) project, which won a $50 million grant in late 2024 to add grid visibility and control devices to 140 grid circuits in disadvantaged and tribal communities served by subsidiary Wisconsin Power & Light — a utility in a blue state.

Those devices could allow the utility to quickly find and isolate faults on its grid, cutting power outages in targeted communities by up to 50%. They could also support grid-management software to help integrate more renewable and distributed energy and potentially expand wireless communications access to these remote areas.

Alliant ​“voluntarily withdrew” from the grant award process in April, six months after its grant was terminated by the DOE, Alliant spokesperson Melissa McCarville told Canary Media. The agency has disbursed no funds to the project, according to federal records.

Alliant is ​“actively pursuing many of the goals that were outlined in the SPARC project,” McCarville wrote in a May email, but as part of a 10-year strategic plan with no set timeline. ​“While the grant did provide valuable funding, it also required a significant investment, and we want to ensure our contributions are properly prioritized,” she wrote.

Still, at least one grant-funded project in a blue state is proceeding despite the absence of DOE funds. 

That’s the case for the Sacramento Municipal Utility District, which serves the state’s capital and environs. In 2023, SMUD won a $50 million grant to support a project to deploy 200,000 smart meters and grid devices and underlying software controls to ​“improve grid reliability, resilience, visibility and efficiency,” utility spokesperson Gamaliel Ortiz told Canary Media in an email. 

SMUD has carried out much of that work, which includes close to $100 million in utility spending, and has received almost $33 million in reimbursements from DOE, according to federal records. However, SMUD ​“has not received reimbursement for any costs incurred after the grant was cancelled on October 10, 2025,” Ortiz wrote. ​“We remain committed to this critical work and stay flexible as we evaluate how the loss of grant funding may impact the project timeline.”

In other blue states, some grants have been canceled and others are still under negotiation. In Oregon, utility Portland General Electric has recently learned that the DOE may reinstate a previously terminated $50 million grant to support next-generation ​“grid edge computing” devices, utility spokesperson John Farmer told Canary Media in an August email. That project had received only $1.2 million in DOE funding, according to federal records.

The purpose of the project was to integrate batteries, EVs, and community solar into its grid to ​“improve resilience, enable the integration of distributed energy resources, and maximize customer investments in home energy solutions.”

“PGE is evaluating the benefits and risks of reinstating the grant,” Farmer told Canary Media. The utility ​“recognizes that there are inherent risks of additional and changing demands by the DOE as the administration’s priorities change.”

At the same time, PGE remains in discussion with the DOE on a $250 million grant to build a high-voltage transmission line with the Confederated Tribes of Warm Springs, Farmer wrote. ​“Without this funding, we would lose the opportunity to offset those costs with external dollars, which could limit how efficiently we can advance needed grid improvements.”

Red state projects are also being held up because the grantee is located in a blue state. Such is the case of the aforementioned $464 million DOE grant for the Joint Targeted Interconnection Queue project to build new transmission lines between the Midcontinent Independent System Operator and Southwest Power Pool, two grid operators spanning nearly a dozen Midwestern states.

The $464 million GRIP grant was meant to bolster $1.3 billion in matching funds from utilities in the region to enable nearly 30 gigawatts of new generation to be built in Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota. All but one of those states voted for Donald Trump in the 2024 election — but the Minnesota Department of Commerce, the entity awarded the grant, is in a blue state.

In May, the Minnesota Department of Commerce announced that the DOE ​“will honor its $464 million grant,” which will ​“unlock more than $1 billion in additional private investment and provide communities across the region with economic and infrastructure benefits.”

A DOE spokesperson told Canary Media in a July email that the DOE has conducted its review of GRIP projects based on a ​“number of criteria,” including whether it has ​“achieved the milestones set forth in the terms of the award,” whether it ​“remains technically and economically feasible,” and whether it ​“continues to effectuate the purpose of the program or the Department’s priorities.”

The spokesperson added that ​“none of the termination decisions were based on political considerations.” That statement is belied by court testimony reported by The New York Times last month, in which a DOE lawyer stated that none of the October grant terminations were ​“based on any programmatic, statutory, cost-reduction or performance-based factor,” and that all but one of them ​“had a recipient location and/​or at least one place of performance in a state that awarded its electoral votes to Kamala Harris in the 2024 election and has two Democratic-caucusing senators.”

During a series of congressional hearings in April, Energy Secretary Chris Wright stated that the DOE’s review of more than 20,000 grants was almost complete and that more than 80% of grantees had received notice that their awards could proceed as is or with modifications.

But an Alumni Network analysis of DOE data shared with Congress showed that the DOE’s review both failed to restore the vast majority of projects caught up in the ​“blue state” termination action in October and failed to address the hundreds of projects that have never been officially terminated but remain unable to secure funds.

The revelation of the DOE’s explicit targeting of blue states for grant termination spurred 39 Senate Democrats to sign a letter to Wright and Vought demanding the immediate restoration of funding for DOE projects terminated in October.

“Once an Administration begins punishing Americans for how they vote,” the senators wrote, ​“the threat extends far beyond these projects: no state, community, business, or worker can trust that the federal government will apply the law fairly.”

A version of this article was first published by Canary Media.

Trump is blocking billions of dollars of grants that would fix the grid is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

Wisconsin power plant could benefit from Trump’s $425 million coal push

A large yellow and brown building with two smokestacks stands behind electrical equipment and power lines under an overcast sky.
Reading Time: 3 minutes

New federal dollars could extend the life of one of Wisconsin’s remaining coal power plants.

The Trump administration plans to spend $425 million to support operations at 13 coal plants in 10 states, arguing the move will help meet rising electricity demand and preserve thousands of jobs tied to the ailing coal industry. The White House will do so by invoking the Defense Production Act, a Cold War-era law that gives the president broad authority to accelerate American industrial output at times of crisis.

Some of that funding could go to Madison-based utility Alliant Energy, which told Wisconsin Watch that it applied for a $19 million grant to extend the life of coal-powered units it owns at the Columbia Energy Center near Portage in central Wisconsin. The utility previously planned to retire the plant’s coal units before the end of the decade. 

President Donald Trump announced the action from the Oval Office Thursday, highlighting  that the coal plants set to benefit are all in states he won during the 2024 election.

 “Wisconsin put you over the edge,” U.S. Rep. Derrick Van Orden, R-Wis., interjected, standing among the gaggle of Republican lawmakers and Cabinet officials behind the president. 

“Our action will allow these facilities to invest in upgrades that will extend their operational lives for decades into the future, reinforce the reliability of our electrical grid … and keep electricity prices low for the American people,” Trump said, adding that the move may also bolster the nation’s artificial intelligence boom.  

The administration will also distribute $200 million in Department of Energy grants to reopen a coal plant in Maryland and build the first new coal plants in the U.S. in over a decade: one in Alaska and another in West Virginia.

The Trump administration has already intervened to block the retirement of coal plants in Michigan, Indiana and elsewhere. But the White House did not pair those earlier orders with funding to support ongoing operations, so ratepayers across most of the Midwest — including in Wisconsin — will pick up the bill for those extensions.

Wisconsin’s Citizens Utility Board (CUB) and other Midwestern ratepayer advocacy groups have since filed an amicus brief in support of a lawsuit challenging federal orders blocking the closure of the Michigan and Indiana plants. The costs of extending aging coal plants’ operations “are adding to an affordability challenge customers are already experiencing in Wisconsin and nearby states,” said CUB Wisconsin Executive Director Tom Content.

Alliant has already pushed back the retirement dates for its coal-powered generators at the Columbia Energy Center and Edgewater Energy Center in Sheboygan. The company initially pledged to shut down the last coal generator at the Columbia plant by 2024; Alliant did not clarify the new expected life span of the plant. 

The Edgewater plant is slated to transition to natural gas generation by 2029.

Coal generation accounts for a declining share of Wisconsin’s and the Midwest’s overall energy mix. Natural gas surpassed coal as the state’s primary fuel for generating electricity in 2022.

Wisconsin ratepayers owe at least $1 billion to pay off debts tied to retired coal plants, including We Energies’ now-shuttered Pleasant Prairie Power Plant in Kenosha County.

Extending operations at Alliant’s remaining coal plants could reduce the amount ratepayers will still owe when those facilities eventually close. 

Wisconsin clean energy advocates reacted with alarm to the White House’s doubling down on coal generation. 

“Burning coal in Wisconsin releases a long list of toxic chemicals and heavy metals, both into the air and water,” said Clean Wisconsin spokesperson Amy Barrilleaux. “No one in Wisconsin is asking for more mercury, arsenic, lead or soot. But we will be getting all of it, especially as the Trump administration dismantles pollution safeguards at coal plants, insisting more power is needed for the ‘AI data center revolution.’”

“It’s also important to note that burning coal is one of the most expensive ways to produce energy in Wisconsin — far more expensive than wind and solar farms, which are the cheapest,” she added. “So Wisconsinites will have higher energy costs and will be paying for the health costs, the longer we burn coal in this state.”

Alliant has scaled up investments in renewable energy generation in recent years, buoyed in part by clean energy tax credits extended by the Inflation Reduction Act in 2022. The U.S. Department of Energy also agreed to back $3 billion in loans supporting Alliant’s wind generation and battery storage buildouts in the final days of the Biden administration.

The Trump administration has since largely reversed Biden-era tax incentives for renewable energy development. In its 2025 annual report to the Securities and Exchange Commission, Alliant noted that the termination of clean energy tax credits could “adversely impact” the company’s finances. 

The company did not immediately respond to an inquiry about the status of Department of Energy financing for its wind and battery storage projects.


U.S. Interior Secretary Doug Burgum argued Thursday that clean energy tax incentives created a false impression of the viability of renewable energy sources. Wind energy developers, he said, “weren’t trying to generate electricity. They’re just trying to generate tax credits.”

“Energy shouldn’t need subsidy,” Trump responded.

Editor’s note: This story was updated on June 5, 2026 to include information from Citizens Utility Board of Wisconsin

Wisconsin Watch is a nonprofit, nonpartisan newsroom. Subscribe to our newsletters for original stories and our Friday news roundup.

Wisconsin power plant could benefit from Trump’s $425 million coal push is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

PSC approves Alliant-Meta data center power deal while criticizing ‘black box’ approach

A banner on a chain-link fence reads “Beaver Dam Data Center” and “Building for the Future,” with snow-covered ground behind it and a blurred vehicle passing in front.
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Wisconsin regulators on Thursday approved a one-off contract between Alliant Energy and the Meta subsidiary building a data center campus in Beaver Dam, but with a major caveat: Alliant must return with a standardized plan to power future data centers — and shield other customers from resulting costs.

The agreement bears little resemblance to the model We Energies proposed for its hyperscale data center customers in Mount Pleasant and Port Washington. That model covers all future We Energies data center customers and was approved last month with major modifications by the three-member Wisconsin Public Service Commission (PSC).

Both the PSC and ratepayer advocates expressed reservations about allowing Alliant to proceed without a standardized payment structure for data center customers. Negotiating contracts one-by-one, Commission Chair Summer Strand argued, would undermine the public’s interest in transparency and consistency.

Strand and fellow commissioners Kristy Nieto and Marcus Hawkins approved a modified version of the agreement, acknowledging that the Beaver Dam campus will open in 2027 with or without a tailored contract with Alliant. Sending the utility back to the drawing board for another year, they reasoned, could expose other customers to greater financial risk. The commissioners directed Alliant to propose a standardized payment structure for large data center customers similar to the We Energies arrangement approved last month.

Wisconsin Power and Light, an Alliant subsidiary, filed its case with the PSC last spring, months before Meta joined state and local officials in announcig its Beaver Dam data center campus.

The Beaver Dam facility, the first of its kind in Alliant’s Wisconsin service territory, is smaller than the soon-to-open Microsoft and Vantage data centers. Meta projects the facility will use 220 megawatts at peak, less than half the projected use of the Mount Pleasant and Port Washington campuses. But even that comparatively modest demand would be six to eight times the current peak for all of Beaver Dam.

In testimony to the PSC in November, Rebecca Valcq, Alliant’s assistant vice president for regulatory affairs and data center services, said the Beaver Dam campus would benefit other customers by “making more efficient use of existing infrastructure” and “spreading fixed costs” across a larger base. She also urged commissioners to consider the data center’s projected $2.1 million in annual local, state and federal tax revenue, among other economic benefits.

Alliant is a founding member of the Wisconsin Data Center Coalition, which promotes the state as a destination for data center developers.

Unlike We Energies, Alliant says it does not expect to immediately build new power plants to serve the Beaver Dam campus. Instead, Meta would purchase electricity from the same generators as the rest of Alliant’s customers. Hawkins noted on Thursday that even if the new data center doesn’t immediately require new generators, it might change the retirement timelines for Alliant’s existing power plants.

Contract negotiated in secret

The utility negotiated its contract with Meta behind closed doors. When it approached the PSC, it asked for approval without changes and requested extensive redactions, hiding many contract terms from the public. Alliant argued that the contract’s specific terms, and the surrounding secrecy, were needed to “attract and accommodate” Meta — and to compete with other states or utility territories courting data center development.

The redactions spurred pushback from ratepayer advocates and the PSC itself, which made more details of the contract available as the case progressed. In Thursday’s hearing, Strand drew parallels with the nondisclosure agreements some data center developers seek from local governments in Wisconsin, including Meta in Beaver Dam, which Wisconsin Watch first reported on in January.

“For some of these new private sector, big tech data center customers that are used to operating confidentially, coming into our state or coming into this process might be a shock to the system,” Strand said. “There is still this black-box approach that includes nondisclosure agreements, heavily redacted filings, corporate pseudonyms and negotiations shrouded in secrecy… This lack of transparency is hurting, not helping.”

The nonprofit law center Midwest Environmental Advocates in December sued the PSC to obtain unredacted documents from the Alliant case. That lawsuit is ongoing.

PSC adds protections, warns of gaps

Alliant proposed some protections for itself and non-data center customers. It set a floor for Alliant’s revenues from Meta, protecting the utility in a scenario in which the data center uses less electricity than initially anticipated.

That minimum covers the cost of building transmission lines to serve the data center. The American Transmission Company, the largest transmission operator in Wisconsin, is currently building a $200 million line to plug in the Beaver Dam campus.

People in raised bucket trucks work on utility poles and overhead power lines behind a chain-link fence, with snow on the ground and equipment vehicles parked nearby.
Construction unfolds at the 350-plus-acre Beaver Dam Commerce Park, the site of a Meta data center, Jan. 20, 2026, in Beaver Dam, Wis. (Joe Timmerman / Wisconsin Watch)

Alliant also proposed requiring Meta to reimburse the utility for the costs of transmission infrastructure if the tech giant backs out of the Beaver Dam project before the new line is complete — and requiring Meta to put up collateral in case its credit rating falls.

The PSC agreed with those terms and added further protections, including requiring Alliant to regularly report on the costs of serving the Beaver Dam campus and leaving the door open for the commission to adjust the cost-sharing to shield other customers from unanticipated expenses.

Commissioners identified some ratepayer protections beyond what it has authority to require. The transmission buildout needed to serve data centers is largely outside of PSC jurisdiction. Much of that authority instead rests with the Federal Energy Regulatory Commission (FERC), which oversees transmission utilities nationwide, and the Midcontinent Independent Systems Operator (MISO), a nonprofit that manages much of the Midwest’s electrical grid.

MISO awarded the transmission line project that will serve the Beaver Dam data center to ATC, which spreads construction costs across all its Wisconsin customers, most of whom are outside Alliant’s territory. While Alliant’s new contract requires Meta to pay a minimum transmission fee to shield other Alliant customers from unexpected costs, those protections don’t extend to customers of other utilities using ATC’s transmission lines.

Alliant’s customers will also pick up “tens of millions of dollars” in transmission costs tied to data centers in other Wisconsin electrical utility territories, Hawkins said. “Whether or not that is appropriate — or something that we are being open-eyed about — is a concern of mine,” he added.

Commissioners on Thursday urged Alliant to begin discussions with ATC on a fairer method for distributing costs — one of the few options within commission authority.

The commission directed Alliant to produce a standardized plan before making agreements with new data center customers.

The PSC is aware that more data centers could come to Alliant’s turf.

“Evidence indicates there are 12 other potential data centers in this utility’s territory that are potentially in the works,” Nieto said. Given that future, she added, Alliant must “establish clear rates, terms and protections and provide transparency, regulatory clarity and public accountability as required when serving loads capable of reshaping a utility’s entire system.”

Ratepayer groups say PSC sent clear message

Ratepayer advocates welcomed Thursday’s decision while emphasizing the importance of the directive to outline a standardized payment structure for future data centers.

“While the PSC approved Alliant’s contract, with modifications, for Meta’s Beaver Dam data
center, the Commissioners recognized that continued one-off, bilateral contract
negotiations are not sufficiently protective of Wisconsin families and small businesses,” Brett Korte, a staff attorney with Clean Wisconsin, said in a press release.

“Today’s PSC decision requiring Alliant to develop a tariff for future data centers will result in a consistent, transparent framework that helps protect the public interest.”

Wisconsin Citizens Utility Board Executive Director Tom Content echoed commissioners’ hopes that Alliant and other electrical utilities will reach an agreement with ATC to protect non-data center customers from transmission-related cost shifts.

“We’re calling on ATC to protect customers across Wisconsin and Michigan to make sure people who aren’t even (customers of) these utilities aren’t on the hook,” he told Wisconsin Watch.

Alliant raised no immediate objections to the PSC’s changes.

“Protecting our customers while allowing communities to grow is central to our commitment at Alliant Energy, and that’s exactly what this contract is designed to do,” a spokesperson wrote in a statement on Thursday afternoon. “It maintains reliability, supports meaningful local economic benefits, and delivers benefits that help keep rates stable for all customers.”

In a quarterly earnings call last week, the company announced plans for a 370-megawatt electric service agreement with a data center customer in Iowa. Unlike Wisconsin’s PSC, Iowa’s utility regulator has been more open to one-off contracts between utilities and data centers.

By removing that option for Alliant’s future arrangements with data center customers, Content said, the PSC’s latest ruling could set a new standard for other utilities in the state.

“They’re sending a message,” he added. “None of this individual contract stuff.”

PSC approves Alliant-Meta data center power deal while criticizing ‘black box’ approach is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

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