Energy Department to Return $13B in Unused Climate Funds to Treasury

United States Department of Energy

WASHINGTON, D.C. — The U.S. Department of Energy said it will return more than $13 billion in unobligated funds once earmarked for climate initiatives, a move officials cast as part of the Trump administration’s effort to cut wasteful spending and refocus the agency on its core energy mission.

Energy Secretary Chris Wright framed the decision as a direct response to what he called fiscal mismanagement under the previous administration. “The American people elected President Trump largely because of the last administration’s reckless spending on climate policies that fed inflation and failed to provide any real benefit to the American people,” Wright said.

The money, originally appropriated to support clean energy programs, will be sent back to the U.S. Treasury under provisions of the Working Families Tax Cut signed into law earlier this year. Administration officials said the move reflects a broader push to channel resources toward affordable and secure domestic energy production.

“By returning these funds to the American taxpayer, the Trump administration is affirming its commitment to advancing more affordable, reliable and secure American energy and being more responsible stewards of taxpayer dollars,” Wright said.

The department said its current priorities include strengthening U.S. energy security, boosting efficiency, and reducing costs for consumers, while halting what officials described as “bloated federal spending” tied to climate policy.

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