What you need to know:
- The Department of Energy has rescinded over 300 grants and 200 clean energy projects approved under the Biden administration, citing failure to meet economic and security standards. The DOE claims it will save $7.56 billion in taxpayer funds.
- High-profile hydrogen production initiatives in states like California, Washington, and New York—including ARCHES and PNWH2—lost funding.
- The hydrogen sector was already in decline due to bankruptcies (Nikola and Hyzon), safety issues (FCEV bus explosion in South Korea), and market shifts toward battery-electric vehicles.
- Critics argue the hydrogen hub program was poorly structured—spread too thin, lacking focus, and propping up outdated fossil fuel infrastructure.
The Trump administration's Department of Energy announced this week the cancellation of over 300 grants and 200 projects slated for green energy initiatives that were originally approved under the previous Biden administration.
The DOE claims the savings amount to an estimated $7.56 billion in taxpayer funds following an internal review process that determined the projects "did not meet the economic, national security or energy security standards necessary to justify continued investment."
The cuts largely targeted blue-leaning states, including California, Oregon, Colorado, Hawaii, Illinois, New Mexico, New York, New Jersey, and several in New England. The DOE said recipients have 30 days to appeal the cancellations, and some have already begun doing so.
Death of FCEVs?
The cuts, in particular, hit two flagship green hydrogen hub projects backed by the Office of Clean Energy Demonstrations, nearly half of the planned direct air capture hub grants, and a broad slate of smaller efforts managed by the Office of Energy Efficiency and Renewable Energy and the Grid Deployment Office.
The cancellation of green hydrogen projects could be a significant blow for commercial trucking. Green hydrogen, alongside batteries, is one of the few zero-emission technologies capable of powering long-haul, heavy-duty trucks. However, the recent bankruptcies of hydrogen fuel cell (FCEV) truck makers Nikola Motors and Hyzon Motors suggest the market is leaning toward battery-electric vehicles (BEVs) as the preferred zero-emission powertrain.
[Related: Nikola Motors, once a Wall Street darling, files for bankruptcy]
The Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) in California and the Pacific Northwest Hydrogen Hub in Washington state have confirmed their funding has been rescinded. In New York, Plug Power, a major player in building an end-to-end green hydrogen ecosystem, also lost federal funding, according to Politico.
The "decision to withdraw federal funding for ARCHES ignores the critical benefits our projects will deliver—including 220,000 American jobs and stronger national energy security and resilience," stated Angelina Galiteva, CEO of ARCHES. "The ARCHES Ecosystem and Marketplace will continue to advance in collaboration with state leaders and private sector innovators—building on our strong foundation to create a reliable, future-focused domestic hydrogen network for California and beyond."
PHN Hub issued a similar response:
"While we are disappointed in the Department of Energy's decision to cut funding for the Pacific Northwest Hydrogen Hub, there is still immense opportunity for our region to finish what we started—establishing a national benchmark for hydrogen production that brings economic opportunities to communities across the region. PNWH2 will continue to support our project and industry partners that have laid the foundation for a thriving hydrogen ecosystem throughout the Pacific Northwest."
Hydrogen already in decline
It should be noted, however, that there have been troubling issues with overseas hydrogen-fueled vehicle projects, specifically the Hyundai-built FCEV public bus explosion in South Korea late last year. Three people were seriously injured.
[Related: Hydrogen-powered bus explosion raises safety concerns]
Hydrogen fuel cell truck sales globally were also in decline before the DOE's latest funding cuts.
"Global fuel cell truck sales plummeted in the first half of 2025," according to the recently released 2025 Bloomberg NEF report. The report goes on to state that "In North America and Europe, the collapse of fuel cell truck startups like Nikola and Hyzon has dampened the market. Legacy manufacturers are postponing fuel cell plans. For example, Daimler is delaying the commercial rollout of its liquid hydrogen truck from 2027 to the 2030s, due to the lack of refueling infrastructure and what it says are volatile overall market conditions."
The outlook for hydrogen in road transport is not exactly rosey, the report summarizes. Vehicle and fuel costs remain steep, infrastructure development is complex (in the case of the US it's nearly non-existent—even in California), and reliance on government subsidies is unsustainable in the long term.
[Related: FCEV early adopter's operational concerns come to life]
What now for hydrogen fueling?
Given the structural, safety, and high cost realities of hydrogen fueling in and outside of the US, the DOE's decision to cut green hydrogen funding could lead to the sector's downfall.
But perhaps that would have eventually happened regardless of the DOE's actions.
The hydrogen hub program was faulty from the start, claims CleanTechnica, because its design was too scattered across numerous states—Washington, Oregon, and Montana—it lacked clear focus, and even supported outdated oil and gas infrastructure. While the cuts were politically driven (again, they happened predominantly in blue states), they may have saved the US from wasting billions on projects with limited impact.
