President Trump is redirecting a massive green energy loan program to fund nuclear power, geothermal energy, and critical minerals, after initially opposing the fund during his first term. His administration now seeks Congressional support to reshape how the Energy Department allocates billions in financing.
Key Facts:
- The Trump administration’s FY2026 budget request plans to use a $400 billion green energy loan program to fund nuclear and mineral energy projects.
- More than $67 billion in loan guarantees and financing are proposed over the next two years, with $750 million requested from Congress to cover loan costs.
- The Energy Department aims to cancel $2.3 billion from a vehicle loan program that previously helped Tesla in 2010.
- Energy Secretary Chris Wright is canceling several loans issued during the Biden era, including a $3 billion loan to solar firm Sunnova.
- The department has received over $216 billion in new financing requests, showing continued demand for energy development support.
The Rest of The Story:
Trump’s latest budget plan reverses an earlier stance he held during his first term, when he argued the federal government shouldn’t decide energy winners and losers.
Now, his administration is tapping into the Department of Energy’s loan authority to finance next-generation nuclear reactors, geothermal power, and domestic mining of critical minerals.
This shift is part of a larger effort to reshape national energy policy around proven and scalable technologies.
The administration is requesting $750 million from Congress to manage some of the costs associated with issuing these loans.
At the same time, it’s proposing cuts to the Advanced Technology Vehicles Manufacturing Direct Loan Program, which once backed Tesla with a $465 million loan.
Energy Secretary Chris Wright has begun canceling Biden-era loans and is conducting a full review of the program.
One loan already canceled is a $3 billion guarantee for Sunnova Energy after the company stepped back from using the funds.
Still, the department reported it has received more than $216 billion in new loan requests.
Commentary:
Trump’s pivot from critic to strategic user of the green bank is the kind of pragmatic move that responsible governance demands.
Instead of letting an enormous pool of funds continue to prop up unproven wind and solar ventures, he’s reorienting those dollars toward technologies that can actually move the needle on energy independence and economic growth.
Small modular reactors and advanced nuclear power, though still in development, are the logical next steps for any serious energy strategy.
They produce stable baseload power, unlike wind or solar, which depend on the weather and require massive battery storage that remains costly and environmentally questionable.
Redirecting federal support toward nuclear energy also strengthens national security.
It ensures that the U.S. isn’t reliant on unstable foreign nations for critical minerals and rare earth materials.
Tying loan programs to domestic production of these resources builds a stronger industrial base.
The move to rescind funding from the electric vehicle loan program is also sensible.
Tesla no longer needs federal help, and the EV market is saturated with taxpayer-subsidized companies that have little incentive to become profitable.
The public should not be footing the bill for corporate experiments.
Furthermore, by seeking Congressional approval rather than issuing executive orders, Trump is respecting constitutional limits and reaffirming the legislative branch’s role in major budgetary decisions.
That’s a sharp contrast to the last administration’s habit of bypassing Congress with sweeping agency directives.
Lastly, for anyone concerned about clean energy, nuclear should be the obvious choice.
It produces zero carbon emissions and has a track record of safely powering cities for decades.
Windmills and solar panels, in contrast, cannot scale fast enough or wide enough to replace fossil fuels at the national level.
The Bottom Line:
President Trump is taking a bold step by repurposing the green energy loan bank toward economically viable energy sources like nuclear and critical minerals.
Rather than waste taxpayer funds on unstable solar firms or legacy EV ventures, this plan supports long-term American growth.
It’s a strategic shift grounded in realism, accountability, and energy security — and it positions the U.S. to lead in next-gen energy without the fantasy of relying on intermittent power sources.
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