POLITICO Energy Trump axed a major power line loan amid US energy crunch
Jul 24, 2025
The Trump administration's surprising cancellation of a $5 billion loan guarantee for the Grain Belt Express raises questions about the future of America's power grid. This decision comes amid rising political pressures and an energy crunch, highlighting the urgent need for better transmission infrastructure. Additionally, Norwegian energy firm Equinor faces significant financial setbacks with its offshore wind projects due to shifting policies and growing costs. The impact of political decisions on renewable energy investments is clearer than ever.
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Grain Belt Express Project Overview
- The Grain Belt Express is a critical $11 billion, 800-mile transmission project crossing four states to improve power grid capacity.
- It enables interregional power transmission, which is essential for meeting rising energy demands, especially from manufacturing and AI data centers.
Trump Cancels Loan Amid Energy Needs
- The Trump administration canceled a $4.9 billion loan for the Grain Belt Express due to political pressure over eminent domain concerns.
- This move contradicts Trump's energy goals, especially given rising power demand and the need for grid upgrades to support AI.
Lawmakers Critique Loan Cancellation
- Bipartisan lawmakers see the cancellation as contrary to national electricity needs and contradicting Trump's own AI plan.
- While transmission projects face local opposition, their importance to energy reliability remains widely supported.