$540M in federal green energy, climate grants for Michigan cancelled in 2025

LANSING, Mich. — A year into President Donald Trump’s second term, the contrasts between his policies and former president Joe Biden’s are clear.

That’s especially the case when it comes to the environment, as large sums heading to green energy and climate projects in Michigan have been taken back by the federal government.

Since the start of 2025, just under $540 million in federal climate grants have been cancelled, impacting a total of seven programs.

“The most significant grant canceled in that bucket is Michigan solar for all grants,” Annabelle Rosser, senior policy analyst at Atlas Public Policy, said.

That program would have support solar development for thousands of households in low-income and disadvantaged communities through direct financial assistance for rooftop solar, community solar, energy storage and enabling upgrades.

The single-biggest cancellation, $170 million, was set aside to help Kraft Heinz could make their facilities more efficient.

That was a multi-state project, but cities like Mt. Pleasant and Grand Rapids also saw grants cancelled, according to an Atlas analysis.

“The vast majority of climate funding that was appropriated or kind of made available by Congress in the last administration, was awarded, and much of it was obligated, by the end of 2024,” Rosser said. “Then, in 2025, we saw a pretty significant cutback and basically a cancellation of a lot of the obligated grants.”

It wasn’t just grants that were impacted, however. In the “One Big Beautiful Bill” passed last year, green tax credits were cut. Ultimately, $3 billion in planned green investments were cancelled in 2025.

“There’s still some investment moving forward in the state,” Rosser said. “There’s like a pretty significant drop off and a rollback of some of those investments that will lead to job losses and economic losses in the state.”

Trump has railed against clean energy projects, calling them the “green new scam.”

The Energy Department, which awarded the grants under the Biden administration, now says many of the projects did not adequately advance the nation’s energy needs, were not economically viable, and would not provide a return on investment.

Supporters of green energy disagree.

“These cancelations are counterproductive,” Bentley Johnson, federal government affairs Director at the Michigan League of Conservation Voters, said. “They’re making energy bills, which are already really high for Michiganders, continue to go up, and they’re a missed opportunity to help support our communities.”

Environmental advocates say the grants would have boosted economic activity, made the grid more resilient and lowered pollution.

They’re also concerned about the implications on the climate.

“We already had our work cut out for us before the Trump administration and Republicans in congress have made these funding frozen these grants and frozen these loans and tax incentives,” Johnson said. “So I am definitely worried about my future, the future of my kids.”

Advocates, though, say the green energy transition is already underway, and the sector is gaining.

As recent as late last month, the Trump administration cancelled an offshore wind energy project, signaling that the rollback of environmental policies is likely to continue.