Trump Admin Cancels 12 Minnesota Energy Projects, Wiping Out $464M Grid Upgrade: Report

ST. PAUL, MN — The U.S. Department of Energy this week canceled 12 energy projects in Minnesota as part of $7.5 billion in nationwide cuts, according to the Star Tribune.

The largest project on the list is a $464 million federal grant awarded in 2023 to help build high-voltage transmission lines across seven Midwestern states, including Minnesota.

State officials had said the lines would boost grid reliability, reduce energy bills, and expand renewable power.

Other Minnesota projects identified by the Star Tribune include a $70 million Xcel Energy battery storage project in Becker, a $50 million transmission line upgrade for Minnesota Power in Duluth, and a $62 million grant for small-scale solar.

The Department of Energy said the cancellations came after a review found the projects did not meet economic or energy security standards. In its release, Energy Secretary Chris Wright said the decision protects taxpayer dollars.

Most of the canceled projects are in Democratic-led states, and reporting by the New York Times described the move as part of shutdown politics aimed at punishing Trump’s political opponents.

Gov. Tim Walz criticized the move, saying it wrongly divides states along partisan lines, while Minnesota Commerce Department spokeswoman Nancy Linden warned the cuts could increase costs for families and slow grid improvements.

"This whole idea that they see states as Democrats and Republicans, or they see areas as red or blue, is simply the most egregious violation of their oath," Walz said.

Linden said her department "is deeply concerned by the U.S. Department of Energy’s suggestion of an illegal effort to rescind federally obligated energy funds targeted exclusively at blue states."

The Energy Department said affected award recipients have 30 days to appeal.