DOE kills $4.9 billion loan guarantee for power line

DOE kills $4.9 billion loan guarantee for power line

The Department of Energy (DOE) 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, was issued by the Biden administration in November 2024. However, after a thorough review of the project’s financials, the DOE found that the conditions necessary to issue the guarantee are unlikely to be met [1].

The termination of the conditional commitment is part of the DOE's ongoing review of every applicant and borrower, including the nearly $100 billion in closed loans and conditional commitments made between Election Day 2024 to Inauguration Day 2025. This review aims to ensure that every single taxpayer dollar is used to advance the best interest of the American people. The DOE is focusing on projects that expand American energy dominance and deliver on President Trump’s commitment to lower energy prices for the American people [1].

In a separate development, the DOE has authorized an emergency exchange from the Strategic Petroleum Reserve (SPR) with ExxonMobil Corporation to address logistical challenges impacting crude oil deliveries at its Baton Rouge refinery. The DOE authorized up to one million barrels of crude oil to be released from the SPR to support ExxonMobil’s restoration of refinery operations. ExxonMobil will return the borrowed crude, as well as additional barrels of crude oil, to the SPR at no cost to the taxpayer [2].

References:

[1] https://www.energy.gov/articles/department-energy-terminates-taxpayer-funded-financial-assistance-grain-belt-express

[2] https://americanpress.com/2025/07/16/doe-authorizes-strategic-petroleum-reserve-exchange-to-support-la-supply/