WASHINGTON, D.C. — The U.S. Department of Energy announced a sweeping overhaul of its federal energy loan portfolio, moving to restructure, revise, or eliminate more than $83 billion in loans and conditional commitments issued during the Biden administration.
The action follows a yearlong review of roughly $104 billion in principal loan obligations, including about $85 billion that the department said was approved in the final months after Election Day. The review was conducted during President Donald Trump’s first year back in office and targeted loans issued through what was formerly known as the Loan Programs Office, now rebranded as the Office of Energy Dominance Financing.
Energy Secretary Wright said the review found an unprecedented surge of loan activity late in the prior administration, exceeding the total amount disbursed over the previous fifteen years combined.
“Over the past year, the Energy Department individually reviewed our entire loan portfolio to ensure the responsible investment of taxpayer dollars,” Wright said. “We found more dollars were rushed out the door of the Loan Programs Office in the final months of the Biden Administration than had been disbursed in over fifteen years.”
The department said the restructuring effort has already resulted in the elimination of about $9.5 billion in government-subsidized wind and solar projects. Those commitments are being replaced with financing for natural gas infrastructure and nuclear plant uprates, which officials say provide more affordable and reliable electricity.
Of the $104 billion in Biden-era loan obligations, the department said nearly $30 billion has been fully de-obligated or is in the process of being unwound, with another $53 billion undergoing revisions.
The Office of Energy Dominance Financing now controls more than $289 billion in available loan authority, including expanded eligibility under President Trump’s Working Families Tax Cut. The department said that makes EDF the largest energy lender in the world.
DOE officials said the revamped office is now focused on lowering electricity prices, strengthening domestic manufacturing, supporting energy-intensive industries such as artificial intelligence, and restoring what the administration describes as American energy dominance.
The department framed the move as a reset of federal energy finance priorities, shifting away from intermittent renewable projects and toward what it calls affordable, reliable, and secure energy sources intended to bolster economic growth and protect taxpayers.
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