The lawmakers allege that the DOE’s decision to cancel these grants disproportionately affects California and other states with major clean energy initiatives. They argue that the move puts thousands of jobs at risk across industries such as renewable energy, advanced manufacturing, and clean technology development. Many of the affected projects were in advanced stages of implementation and had already received conditional approvals or partial funding from the federal government.

According to the letter, several of the terminated programs were focused on clean power generation, energy storage, and modernization of the electric grid—key components of the Biden-era climate agenda that continued under existing federal programs. Pelosi and her colleagues say halting these efforts will not only stall progress toward sustainability goals but also lead to higher energy costs for working families and small businesses.

The California delegation expressed concern that the decision appears to have been made based on newly imposed criteria, not grounded in existing law. They claim the DOE does not have the legal authority to revoke grants already awarded or approved through congressional appropriations. “This action raises serious questions about the misuse of federal authority for political retaliation,” the lawmakers wrote.

In their letter, they also emphasized that the sudden loss of funding jeopardizes projects crucial to maintaining America’s leadership in renewable energy technology. Many of these initiatives, they argued, were designed to improve energy reliability, reduce emissions, and expand employment opportunities in communities transitioning away from fossil fuels.

The group warned that the termination of grants could have a chilling effect on future public-private partnerships, discouraging companies from investing in federally supported innovation if they believe their projects could be canceled for political reasons. “Investors and developers rely on stability in government commitments,” they said, stressing that this move undermines confidence in the federal grant process.

Pelosi and her fellow lawmakers are asking the DOE Inspector General to review the internal communications and decision-making processes behind the cancellations. They want to determine whether political considerations influenced the department’s actions and whether the move violated federal law or grant agreements already in place.

Senator Schiff said in a separate statement that the decision “strikes at the heart of fair governance,” accusing the administration of “punishing states for their political leanings instead of prioritizing national energy needs.” Senator Padilla added that the cancellations could “set back years of progress in clean energy innovation and put thousands of California workers out of jobs.”

The lawmakers also linked the issue to broader concerns about politicization within federal agencies, warning that the use of grant authority as a political tool undermines trust in the federal government’s ability to operate impartially. They stressed that many of the canceled projects were expected to boost local economies and strengthen the country’s competitiveness against China and other global energy leaders.

Their letter concluded with a call for transparency and accountability, urging the Inspector General to provide a public report on whether the DOE acted within its statutory authority. Pelosi said the goal is not only to restore the terminated funding but also to ensure that future administrations cannot arbitrarily cancel congressionally authorized programs based on political motives.

“The American people deserve to know whether their government is being used to advance policy or to punish opposition,” Pelosi said. “Energy independence and innovation should never be partisan issues.”