Six months after news surfaced of planned US federal funding cuts for climate-oriented projects, the Trump administration has now decided to preserve or modify roughly 2,000 awards previously marked for cancellation.
This week, a list of carbon removal and clean energy projects compiled by the US Department of Energy was presented to members of the House Appropriations Committee, outlining awards that are either to be retained or modified, Bloomberg reports.
The reportedly 39-page-long list of preserved awards contains five major US hydrogen hubs, including ventures linked to Chevron Corp., EQT Corp., and Bloom Energy Corp., as well as the two largest DAC hubs in the United States—Project Cypress in Louisiana, a joint initiative between Heirloom, Climeworks, and Battelle; and the South Texas DAC hub in Kleberg County, Texas, developed by Occidental’s 1PointFive, with technology by Carbon Engineering.
Under the Biden administration, the two large-scale DAC hubs were selected to split a federal award of $1.2 billion. The wave of DOE awards cancellations in the fall of 2025 left the fate of this funding uncertain, raising concerns that it too might be slashed.
Talking in front of a House Appropriations subpanel on Wednesday, US Energy Secretary Chris Wright shared that 2,200 projects have now been reviewed and the agency is “keen to move forward” with the majority of them either as-is or subject to modification.
Carbon Removal Alliance Executive Director Giana Amador said that some of the DAC projects included in the list of preserved initiatives were notified in recent days of the development.
In a publication, she highlighted that “this outcome was far from guaranteed,” adding, “This is a step in the right direction, but what’s important now is that these projects get built. That means steel in the ground, agreements honored, and clarity so our companies can do what they do best: build.”
Vikrum Aiyer, Head of Policy for Heirloom, confirmed that the funding for the Project Cypress DAC Hub has been retained by the U.S. DOE following a rigorous review.
Relevant: DOE Might Cut Funding For The Two Largest DAC Hubs In The US
He stated, “We’ve been proud to secure strong support from local leaders, Louisiana’s Congressional Delegation, and Governor Jeff Landry to ensure the project’s strong economics and alignment with the energy dominance agenda continue to elevate the Pelican State’s role in strengthening American energy production and re-industrialization.”
“Project Cypress will create high-quality jobs, strengthen domestic supply chains, and pair industrial growth with advanced carbon management—while supporting Louisiana’s all-of-the-above energy strategy and ensuring DAC employs inventive energy systems to serve as a good grid citizen,” Aiyer added.
Giana Amador and her team believe this is a really positive step and a confirmation from the Department of Energy that carbon removal is a priority in the administration.
While the DOE has confirmed the list of preserved awards, it has not provided any additional information on how the funding awards might be modified going forward.
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