Gutting DOE Clean Energy Offices: A $40 Billion Betrayal of Grid Reliability and Climate Action
Project 2025's plan to eliminate the Grid Deployment Office and Office of Clean Energy Demonstrations is already being partially realized via administrative termination of grants and Office closure — actions House Democrats have called illegal. This dismantles the federal government's ability to decarbonize the power sector, deploy demonstration projects like direct air capture and hydrogen hubs, and plan a modern, reliable grid.
Project 2025's blueprint for the Department of Energy calls for eliminating two key offices — the Grid Deployment Office (GDO) and the Office of Clean Energy Demonstrations (OCED) — both established by statute in the Bipartisan Infrastructure Law of 2021. The stated rationale is to end "market distortions" and stop "picking winners and losers." As of late 2025, the Trump administration has followed through on key elements of this blueprint; the House Science Committee has declared the elimination of OCED illegal. These actions go far beyond budget trimming: they are a frontal assault on the federal government's core responsibility to ensure a reliable, affordable, and clean electricity grid.
Eliminating GDO and OCED isn't about neutrality — it's about handing the electric grid over to the same incumbents who have spent decades blocking transmission expansion and resisting clean energy deployment. GDO's work on the National Transmission Planning Study and National Interest Electric Transmission Corridor designations is precisely the kind of federal leadership that states and regions need to build the high-voltage backbone for a 21st-century grid. OCED's portfolio — including $8 billion for regional clean energy hubs and $3.5 billion for direct air capture — represents the only federal program designed to take breakthrough technologies from lab to market at scale. Killing these programs doesn't save taxpayer money; it locks in a brittle, fossil-dependent grid that will cost Americans billions in outage-related losses and public health damage.
The alternative is not to defend every grant as written, but to double down on public stewardship. The Green Industrial Policy research makes clear: the U.S. energy sector has always been a public-private partnership, with benefits accruing primarily to private shareholders. A publicly managed fossil fuel wind-down would create a Transition Coordination Administration and a public benefit corporation — Energy for America — to manage physical assets and ensure that the transition to clean energy benefits communities, not just corporate balance sheets. Instead of defunding OCED and GDO, Congress should expand their mandate to include community technical assistance and a detailed annual inventory of emissions, co-pollutants, and environmental justice impacts. The fight now is to restore what the administration has illegally taken away and to build the durable federal capacity that only a whole-of-government approach can deliver.
Rollback path — how this gets undone
This action has already been implemented. These are the concrete levers that could reverse it.
- Reverse DOE award terminations and restore GDO/OCED funding The next administration should issue a directive to DOE reinstating all terminated GDO and OCED awards and re-appropriating rescinded funds; Congress should pass a supplemental appropriations bill restoring the $7.5 billion cut from the 223 projects.
- Reconstitute OCED as required by statute House Democrats have flagged OCED's elimination as illegal; a future administration should reconstitute the office by executive action and restore its $20+ billion demonstration portfolio, or Congress could file suit to compel compliance with the IIJA.
- Resume NIETC process and National Transmission Planning Study DOE should re-open the NIETC designation process and direct the GDO (or its successor) to complete the National Transmission Planning Study, ensuring grid planning includes renewable integration and interregional capacity.
- Rescind any DOE memo disestablishing GDO or transferring its functions to CESER The Secretary of Energy should formally reverse any administrative order that dismantles the GDO or shifts its grid-planning role to CESER, restoring the office's original mandate under the IIJA.
Original source — excerpted
project2025 Project 2025 ch. 12: Department of Energy (pp 413-415)"— 380 — Mandate for Leadership: The Conservative Promise Budget EERE was funded at slightly more than $2.8 billion in FY 2021, and DOE requested slightly more than $4.0 billion for FY 2023.47 Congress needs to rescind the appropriated monies that EERE has not spent and begin fresh with new appropriations. GRID DEPLOYMENT OFFICE (GDO) Mission/Overview The Grid Deployment Office was established to implement parts of the Infra - structure Investment and Jobs Act. Pursuant to the IIJA, GDO administers funds appropriated by Congress to support transmission expansion and low/zero carbon resources. In addition, GDO is developing studies of the electric grid to address congestion, enhance reliability and resilience, and promote “clean” energy.48 Needed Reforms l End grid planning and focus instead on reliability. FERC and NERC have the primary responsibility for addressing reliability, states have the primary authority to site and permit transmission lines, and regional transmission organizations assist in planning regional transmission needs for parts of the country, but Congress granted some grid planning and siting authority to FERC and DOE through the Energy Policy Act of…"