The Trump administration on Wednesday cancelled a $4.9 billion federal loan guarantee for a high-voltage transmission line meant to deliver wind and solar power from the Midwest to the eastern US, though the company behind the project said it will move forward with private funding.
The Department of Energy (DOE) said it is “not critical for the federal government to have a role” in the first phase of the Chicago-based Invenergy’s Grain Belt Express project, and questioned whether the $11 billion project meets financial conditions required for a loan guarantee.
President Donald Trump has long opposed wind and solar power, calling them unreliable and favouring fossil fuels. The DOE also claimed the commitment to Invenergy was one of many “rushed out the doors” by the Biden administration after losing the election.
Missouri Republicans Sen. Josh Hawley and Attorney General Andrew Bailey have criticised the project, calling it a threat to farmland and property rights. Hawley said he secured a pledge from Energy Secretary Chris Wright to cancel the loan in a conversation with Trump.
“To ensure more responsible stewardship of taxpayer resources, DOE has terminated its conditional commitment,” the agency said.
Loan guarantees help lower borrowing costs. Invenergy expressed disappointment, calling the Grain Belt Express “America’s largest power pipeline,” and stated construction is still set to begin next year.
The company said a privately financed line would still support Trump’s agenda of energy and tech dominance, while cutting energy costs, improving grid reliability, and creating thousands of jobs.
Invenergy projects 4,000 new jobs and $52 billion in consumer savings over 15 years. The 800-mile line would carry up to 5,000 megawatts of electricity from western Kansas through Missouri and Illinois to Indiana, connecting to the eastern US grid.
“This is a backward move at a time of rising electricity demand,” said Bob Keefe, director of renewable energy advocacy group E2.
The decision came the same day Trump announced plans to boost US dominance in artificial intelligence, including faster permits for data centers and factories—both of which would increase power demand.
“This gross mismanagement will raise power bills and weaken grid reliability,” said Laurie Williams of the Sierra Club.
Jigar Shah, who led the DOE loan office under Biden, said the department is legally obligated to follow through if conditions are met. “This decision is illegal,” he wrote on LinkedIn.
Critics like Hawley have called the Grain Belt Express a “scam” and criticised its use of lawsuits to compel land sales from unwilling owners. Court records show Invenergy filed dozens of suits in Missouri. The Missouri Farm Bureau warned the project could “sacrifice rural America in the name of progress.”
“We’ve won a major battle for Missouri’s property rights,” said Bailey, adding that if Invenergy proceeds with private funding, the state “will continue to fight every step of the way.”