News Brief

April 3, 2025

Trump Administration plans cutting clean hydrogen funds while maintaining subsidies for fossil fuel-based hydrogen

An internal memo by from the Department of Energy indicates the Trump Administration is planning to cancel funding for hydrogen hub projects in majority-Democratic states, while maintaining funds for hubs in Republican states.

According to Politico, the memo shows the department weighing cutting funds for four of seven proposed hydrogen hubs – networks of hydrogen production facilities, transport storage sites, and hydrogen users. The hubs were set to receive a combined $7 billion under former president Biden’s Bipartisan Infrastructure Law in an effort to develop the market for hydrogen, a fuel that does not produce greenhouse gas emissions when burned.

Instead, the Energy Department might axe funding to ARCHES (California), the Mid-Atlantic hub (Pennsylvania, Delaware, New Jersey), the Pacific Northwest hub (Oregon, Washington, Montana),and the Midwest hub (Illinois, Indiana, Michigan). All would produce hydrogen using water and renewable energy or nuclear power.

However, the department is considering maintaining funds for three hubs in majority-Republican states that would produce hydrogen using fossil fuels. These are the Heartland hub (Minnesota, South Dakota, North Dakota), the Appalachia hub (Ohio, Kentucky, West Virginia, Pennsylvania), and the HyVelocity hub(Texas and Louisiana).

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