According to Bloomberg, former President Donald Trump's advisors are considering plans to redirect President Joe Biden’s $400 billion Green Bank to support oil, gas, and other energy projects.
The Green Bank, officially part of the Department of Energy’s Loan Programs Office (LPO), has been a vital tool for Biden’s administration in funding “carbon-reducing initiatives.”
The Biden administration has issued several high-profile loans through the Green Bank, including a conditional $9.2 billion loan to Ford Motor Co. for constructing battery plants and $3 billion for Sunnova Energy International Inc. for solar projects. In addition, nearly $2.3 billion was conditionally allocated to Lithium Americas Corp. for a mining and processing project in Nevada. As of July, the office had 209 applications requesting $281 billion in financing.
While the LPO, created under President George W. Bush, is designed to fund innovative projects that lower carbon emissions, it also allows funding for carbon capture and advanced fossil energy technology. Under a potential second Trump administration, these projects could see a new focus, along with zero—or low-carbon energy projects like hydrogen and small modular nuclear reactors. His administration could also prioritize natural gas and mining, potentially reshaping the Green Bank’s focus toward traditional energy sectors.
Activist groups are pushing for quick disbursement of funds before a possible Trump return to office, but the Green Bank’s review process can take several months.