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Energy Department to slash $7.5B in project funds, almost all in Democrat-led states

Russ Vought, director of the White House Office of Management and Budget, announced on Wednesday that funds for 223 projects across 16 states would be canceled.
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The U.S. Department of Energy is canceling hundreds of funded projects that it says aren't worth the investment.

Russ Vought, director of the White House Office of Management and Budget, announced on Wednesday that funds for 223 projects across 16 states would be canceled.

Most of the states are led by Democratic governors and have elected Democratic lawmakers to the U.S. Senate.

In total, the projects set to shutter account for more than $7.5 billion in federal funds.

The Department of Energy has not published a list of the specific projects affected. According to reporting from The New York Times, efforts affected include electrical grid overhauls and hydrogen fuel production hubs.

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"Following a thorough, individualized financial review, DOE determined that these projects did not adequately advance the nation’s energy needs, were not economically viable, and would not provide a positive return on investment of taxpayer dollars," the Energy Department wrote.

A department memo in May called for the case-by-case auditing of financial awards to make sure they met "the economic, national security or energy security standards necessary to justify continued investment."

The cancellations are likely to face legal challenges. That memo says recipients of those awards would have 30 days to appeal the department's decision to cut their funding.