Amidst potential federal funding cuts, Wisconsin stands at a crossroads as Gov. Tony Evers urges the Trump administration to reconsider the termination of crucial energy grants. The state could face a significant financial setback if over $1.5 billion in energy-related funding is pulled, affecting a broad range of projects and initiatives.
Potential Termination of Energy Grants
The U.S. Department of Energy is currently evaluating the termination of over 600 funding awards from the Biden administration, amounting to nearly $24 billion. This represents an increase from an earlier announcement of 321 awards totaling approximately $7.5 billion slated for cancellation. Among those under review are 22 awards in Wisconsin that could cost the state more than $1.5 billion, according to information from Gov. Evers’ office and Latitude Media.
In response, Gov. Evers has written to U.S. Energy Secretary Chris Wright, urging the department to maintain the funding for these essential projects. Evers expressed concern that such terminations could be detrimental at a time of increasing energy demand and costs, stating, “Terminating these funding awards at a time of record-high energy demand and rising costs would be counterintuitive, reckless, and ill-advised.”
Implications for Wisconsin Projects
Several key projects in Wisconsin are at risk, including a $80.7 million allocation to Madison-based Alliant Energy. This funding includes $50 million for smart grid technology in rural areas and $30.7 million for an energy storage system in Columbia County. Alliant Energy spokesperson Cindy Tomlinson noted the utility has not received any official notice of changes to their grants, expressing optimism about the projects’ future.
Similarly, Dairyland Power Cooperative, headquartered in La Crosse, could lose $28 million intended for battery storage facilities in rural areas. Spokesperson Katie Thomson confirmed no communication regarding changes has been received and emphasized their commitment to providing reliable electricity.
Larger Regional Impact
The largest potential loss in Wisconsin is a $925 million investment in the Heartland Hydrogen Hub, a regional initiative aimed at producing low-carbon hydrogen and creating jobs in the energy and agriculture sectors across six states, including Wisconsin. Despite the potential setbacks, the Heartland Hydrogen Hub has yet to comment on the situation.
Other entities that might be affected include Harley-Davidson, Johnson Controls, Generac Power Systems, Kohler Co., the Universities of Wisconsin, and the city of Kaukauna. These organizations either did not comment or have yet to respond to inquiries about the funding threats.
Concerns Over Energy Sector Job Growth
The potential funding cuts have raised concerns about the future of job growth in Wisconsin’s clean energy sector. According to a report from clean energy groups, approximately 75,000 jobs in the state are tied to renewable energy and related industries. Alex Beld from RENEW Wisconsin highlighted the potential risk to job growth, noting that jobs in this sector are expanding at a rate significantly higher than the overall economy.
Amy Barrilleaux of Clean Wisconsin pointed to the “uncertainty and chaos” within the administration, suggesting that the funding cuts reflect a shift back towards fossil fuels. She emphasized the importance of these investments for future energy efficiency and grid readiness.
Editor’s note: Alliant Energy is a sponsor of Wisconsin Public Radio.
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