The Biden administration is urgently working to finalize $25 billion in green energy loans before President-elect Donald Trump takes office. The push to approve these loans, which would fund electric vehicle (EV) battery plants and other green energy projects, has sparked concern among lawmakers and industry figures, who warn that the hasty approval process could result in fraud, waste, and financial mismanagement.
The Department of Energy’s Loan Programs Office has significantly accelerated the loan approval process, closing seven loans worth $5.9 billion in the past two months. In contrast, only five loans totaling $6.5 billion were finalized in the previous 27 months. The rapid pace of these approvals has raised alarms, with critics fearing that the loans could be funneled to politically connected firms without sufficient oversight.
Sen. John Barrasso (R-Wyo.) and Rep. Cathy McMorris Rodgers (R-Wash.) have expressed concerns that the increased pace of approvals could lead to taxpayer money being misused. Barrasso suggested that the administration was using the remaining time in office to push loans to favored companies, while McMorris Rodgers warned that the rush could result in a repeat of the Solyndra debacle, a government-backed solar company that went bankrupt after receiving $535 million in taxpayer-funded loans.
Despite these concerns, the Biden administration defends the increased pace of loan approvals, claiming that the loans will create jobs and help accelerate the transition to clean energy. However, critics argue that the urgency to finalize the loans before Trump takes office raises questions about the long-term viability of the projects and the risks of government waste.
Trump has campaigned on rolling back green energy policies and has promised to halt subsidies for these types of projects once he takes office. His incoming administration is expected to review and potentially cancel any new green energy funding, including loans that have been rushed through in the final months of Biden’s presidency.
The rapid approval of these loans has sparked a debate about the future of U.S. energy policy. With Trump preparing to take office, it remains to be seen whether these green energy initiatives will be carried forward or halted as part of a broader reevaluation of energy priorities.
