With President-elect Donald Trump’s inauguration just weeks away, the Biden administration is working to push through more than $25 billion in green energy loans, sparking concerns that the rush to approve these funds could lead to wasteful spending and potential fraud. Lawmakers, particularly Republicans, warn that this frantic effort could mirror the infamous Solyndra scandal that plagued the Obama administration.
Through the Department of Energy’s Loan Programs Office, the Biden administration is finalizing 16 pending loans worth $25.1 billion. These loans, part of a broader green energy push, are being closed at an accelerated rate, with seven loans totaling $5.9 billion approved over the last two months. This marks a significant increase in loan activity compared to the previous 27 months, when only five loans worth $6.5 billion were finalized.
Republican critics, including Senate Energy and Natural Resources Committee Ranking Member John Barrasso (R-Wyo.) and House Energy and Commerce Committee Chairwoman Cathy McMorris Rodgers (R-Wash.), have raised alarms about the speed with which these loans are being finalized. Barrasso accused the Biden administration of prioritizing political connections over responsible spending, warning that such a rush increases the risk of insider deals and mismanagement of taxpayer funds. He also compared the situation to Solyndra, the solar panel maker that received $535 million in federal loans before going bankrupt.
The Loan Programs Office has been a focal point of criticism for its past investments in green energy projects that ultimately failed, including Solyndra. Despite this, the office has been revitalized under the Biden administration, receiving billions of dollars from the Inflation Reduction Act to fund new green energy initiatives. While the department defends its work, claiming that these investments are creating jobs and reducing energy costs, critics argue that the rapid pace of approvals leaves little time for proper scrutiny.
As Trump prepares to take office, many expect him to undo much of the green energy spending initiated by the current administration. Trump has repeatedly vowed to halt subsidies for green energy projects and has expressed his intent to prioritize traditional energy sources such as oil and natural gas. The incoming administration’s stance on these loans, and whether it chooses to halt or audit them, will likely be one of the first major actions taken in the early days of Trump’s presidency.
The controversy over these loans underscores the ongoing debate over the future of U.S. energy policy. With green energy projects facing scrutiny from Republicans and a growing push for accountability, the next few months could see significant changes in how the federal government supports energy development.
