Colorado Faces Deep Cuts to Federal Clean-Energy Funds

By Gabrielle Franklin | KDVR Fox31

DENVER (KDVR) — Day two of the federal shutdown is winding down. While members of Congress are not set to vote on another proposal until Friday, President Donald Trump and his budget director are working on a plan to cut federal funding and jobs in blue states.

Colorado is set to see cuts.

The president’s budget director warned that since Wednesday, Colorado may lose some federal funding for clean energy programs. There is now a better idea of exactly what could be cut.

Russell Vought is the U.S. Director of the Office of Management and Budget. He also helped write Project 2025. He met with President Trump on Thursday to determine which agencies he should cut.

The president said on social media that the two of them would determine if the cuts would be permanent or temporary; Trump called this an unprecedented opportunity. Vought said mass layoffs would likely happen Thursday or Friday, the president’s Press Secretary Karoline Leavitt saying thousands will likely be laid off from the federal workforce.

Vought also posted on X on Wednesday that nearly $8 billion in climate-related projects would be cancelled in 16 states, Colorado being the second on the list of all the states that went for Kamala Harris in 2024.

A list of the U.S. Department of Energy projects was shared with FOX31. There were 34 projects related to Colorado. While those projects did not have cost projections listed, they are believed to be worth more than $500 million in federal funding.

Among the institutions whose projects are facing cuts, Colorado State University, Trustees of the Colorado School of Mines and the Colorado Energy Office were all listed multiple times.

Groups, leaders react to Colorado’s expected funding cuts

The Colorado Energy Office sent FOX31 an updated statement Thursday afternoon, saying their grants impacted by the cuts total to $5 million.

“Colorado is proud to lead the nation in clean energy and consumers in our state continue to choose low cost renewable energy and clean, reliable technologies. We cannot allow China to surpass our country in these sectors. While we have not formally received any official federal notices of termination, we understand that two Colorado projects that total $5 million are on DOE’s list, which specifically targets states where a majority of Americans cast their votes in favor of the Democratic nominee for President. This clearly politically motivated targeting of grants by the Administration will balloon energy costs, threaten grid reliability, increase pollution, and create instability in our business community. The two Colorado Energy Office grants that are targeted on the list each provide $2.5 million to support reduced energy use and create cost savings through building energy codes and building performance standards that support decarbonization. These are just two of more than 30 grants totaling more than $500 million that are being illegally terminated in Colorado alone. Other terminated grants in Colorado range from oil and gas methane reduction projects and investments in grid resilience to support for utility programs in low-income communities.”

The Sierra Club:

“By cancelling more renewable energy projects, Donald Trump is directly raising energy bills for millions of Americans. These projects are stable, well-paying jobs, and crucial cost-savings for families. While families are already struggling with the high cost-of-living across the country, the administration is focused on playing political games and holding common sense projects hostage, leaving everyday Americans out to dry.”- Sierra Club Climate Policy Director Patrick Drupp

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