Senator raises concerns over $93B DOE loans issued without business plans

The U.S. Senate Committee on Appropriations convened on May 21, 2025, for a subcommittee hearing to review the President’s Fiscal Year 2026 Budget Request for the Department of Energy. The meeting focused on the financial management and oversight of the Department, particularly concerning the loan program office.

One of the primary topics of discussion was the significant amount of taxpayer money disbursed by the Department of Energy in a short timeframe. A committee member raised concerns about the $93 billion in loans and commitments made within just 76 days, highlighting that this figure was more than double the amount allocated in the previous 15 years. The member questioned the adequacy of the vetting process for such large sums, particularly given the limited time frame.

The discussion revealed that many loans were granted to businesses that did not provide essential documentation, such as business plans or financial solvency information. This raised alarms about the due diligence performed by the Department of Energy, with committee members expressing skepticism about the integrity of the loan approval process. The member emphasized the need for accountability in handling taxpayer funds, indicating that the lack of proper oversight could lead to mismanagement of public resources.

The hearing underscored the committee's commitment to ensuring that taxpayer money is handled responsibly and that future loan approvals are subject to rigorous scrutiny. As the meeting concluded, the committee members acknowledged the importance of addressing these concerns to restore public trust in the Department of Energy's financial practices. Further discussions and follow-up actions are expected as the committee continues to evaluate the budget request and the Department's financial oversight mechanisms.