Clean energy projects in the U.S. may soon come to a stop. Congress is debating huge budget cuts. These cuts would hurt new green fuel and power projects. One major plan now at risk is a $7 billion fuel plant in Texas. HIF Global, a U.S.-based energy firm, wants to build it. The plant would be in Matagorda County. It would take carbon dioxide and green hydrogen and turn them into e-methanol. This clean fuel could power ships and planes. The fuel would be made with energy from the sun and wind.
If built, it would be the largest plant of its kind in the world. The project would also create thousands of jobs. But HIF Global has not started building yet. The company is waiting to see what Congress decides. It is worried about losing key tax credits. These credits were meant to support green fuel like hydrogen. The credits were passed under the Inflation Reduction Act, also known as the IRA.
Lee Beck, a leader at HIF Global, says the tax credit is very important. She says the company does not plan to depend on it forever. But for now, it is needed to get the project going. Without the credit, the company may stop the Texas plan. Instead, it could build in places with more support for clean energy.
This is not just one company’s problem. Many green projects across the U.S. are facing the same risk. Since taking office, President Trump has made many changes. He pulled the U.S. out of the Paris climate deal. He also stopped new clean energy plans on federal land. Many funds set aside for clean energy are now frozen. These include funds from the IRA and the Infrastructure Investment and Jobs Act.
This freeze is blocking billions of dollars. The money was meant for electric cars, solar power, and clean fuel plants. It was also supposed to help build new factories for batteries and wind turbines. Now, many of these plans are stuck.
Adie Tomer from the Brookings Institution says the U.S. is moving backward. Other countries are growing their green energy plans. But in the U.S., things are slowing down. Lawsuits about the funding freeze are in court now. Some may reach the Supreme Court. In the meantime, agencies are trying to figure things out on their own. This is causing delays and confusion.
Many in the industry are upset. Jessie Stolark leads the Carbon Capture Coalition. Her group supports ways to store carbon safely. She says the lack of clear rules is a big problem. Early-stage projects have received some funds. But later phases remain in doubt. She says if these first projects fail, it could hurt the whole industry for years.
Other experts agree. Ashur Nissan, a policy advisor, says many clean energy plans are in areas run by Republicans. These places could lose jobs and growth if the credits end. Still, the politics seem to matter more than the benefits.
The future of the IRA credits looks bleak. Experts think many of them will be cut short. They were supposed to last until 2032 or longer. But now they may end early. These credits help people buy electric cars and improve home energy. They also support solar panels and battery production. The Cato Institute, a policy group, says the credits are too costly. They want them gone to save taxpayer money.
As a result, money going into clean energy is falling. A recent report shows a 3.8% drop in the first quarter of 2025. This is the second quarter in a row with a decline. Only $67.3 billion was invested from both public and private sources. Hannah Hess from the Rhodium Group says there are many reasons. High interest rates, inflation, and supply issues are part of it. But the biggest problem is policy. She says many companies are scared to move ahead when rules keep changing.
In fact, more clean energy projects are being cancelled. In early 2025, six big battery projects worth $6.9 billion were called off. No one knows if the White House caused this. But many think the confusion from above plays a role.
Some companies are changing how they talk about clean energy. One of them is LanzaJet. They make fuel for airplanes. Their website used to talk a lot about climate change. Now it talks more about local jobs and materials. CEO Jimmy Samartzis says this is on purpose. He says they change their message depending on the people they talk to. The company got a $3 million grant last year. But the money is stuck because of the freeze.
He says, “It’s approved, but right now, it’s not moving.”
Many companies now feel stuck. They have the ideas. They have the tools. But without support, they cannot move forward. What happens next will depend on what Congress decides. Their choice could shape the future of clean energy for years.