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Senators press DOE on loan program after $93 billion in rapid commitments; Wright says review underway

May 21, 2025 | Appropriations: Senate Committee, Standing Committees - House & Senate, Congressional Hearings Compilation


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Senators press DOE on loan program after $93 billion in rapid commitments; Wright says review underway
WASHINGTON — Senate appropriators pressed Energy Secretary Chris Wright on the Department of Energy’s handling of large loans and grants during a subcommittee hearing that repeatedly returned to a figure Wright cited: $93 billion in loans or commitments from the Loan Program Office during a 76‑day period around the 2020–2021 presidential transition.

The dispute centered on whether those rapid commitments were properly vetted and whether DOE should pause some awards while the department examines their business plans and financials. “In the 76 days from election day to inauguration day… the previous administration lent or committed $93,000,000,000,” Wright told the Subcommittee on Energy and Water Development, and said the department is now “looking at that” and running reviews.

Why it matters: Senators said the speed and scale of commitments put taxpayer dollars at risk and have prompted reviews that, they warned, are delaying projects that local governments and companies planned around. Chair Senator Kennedy and several members described cases in which awards or expected federal funds have been held up, affecting state and private projects ranging from grid upgrades to manufacturing retooling.

Committee members focused on patterns they described as “half‑baked” proposals and weak documentation. “Why do you vet and do due diligence on a loan in 76 days?” Kennedy asked. Wright responded that some commitments lacked basic business plans or financial information and that the department must now “separate the wheat from the chaff.”

Several senators said the reviews are creating real costs for project sponsors who expected federal support. Senator Ossoff asked about grid‑upgrade grants that a state government had already planned with matching private capital; DOE told him those awards were under review and said the agency expects to finish reviews “this summer.” Senator Baldwin raised concerns about battery supply and manufacturing projects in Wisconsin that she said are waiting on paused funds.

Wright defended the broader Department of Energy mission and the Loan Program Office as tools to mobilize private capital, saying the office “led $43,000,000,000” over a 15‑year period and noting that a surge of commitments late in the prior administration required closer scrutiny. He said DOE is conducting “careful reviews” and will pursue both legitimate projects and, where appropriate, actions against improper uses of funds.

The hearing record will remain open for senators to submit additional questions and documents. Wright repeatedly invited lawmakers to bring specific unpaid‑invoice or grant problems to DOE’s attention so staff can follow up.

The subcommittee is expected to press for further documentation on the loan and grant reviews and for timetables on decisions affecting projects with already‑committed private capital.

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