The United States Department of Government Efficiency (DOGE) is reportedly preparing to cut approximately $10 billion from the Department of Energy’s (DOE) funding designated for clean-energy projects. According to internal department memos and sources cited by the Wall Street Journal, the planned cuts would affect a broad range of government-backed contracts and initiatives.

The projects targeted include hydrogen fuel development, carbon capture technologies, long-duration energy storage, and other innovative green initiatives. The cuts will also impact large energy corporations such as Exxon Mobil Corp., Occidental Petroleum Corp., and NextEra Energy, Inc., which are among the firms whose contracts with the government are expected to be terminated.

The move is said to be part of DOGE’s broader strategy to reduce government expenditures and streamline departmental operations. The planned reductions will reportedly target two specific DOE offices responsible for administering these contracts and programs.

Additionally, the funding rollback is expected to result in significant job losses. Of the approximately 17,500 positions currently within the Department of Energy, only 9,000 have been deemed “essential” by DOGE, potentially placing thousands of federal workers at risk of unemployment.

This development underscores the Trump administration’s intensified focus on fiscal efficiency and reallocation of federal resources during the president’s second term. The administration has consistently emphasized trimming federal programs that it considers non-essential or excessively costly, with a particular emphasis on energy-related expenditures.

The proposed cuts have sparked concern among clean-energy advocates and industry stakeholders, who argue that such reductions could stall progress toward energy innovation and weaken the country’s leadership in the global green economy. Critics also point to the economic ripple effects on employment and regional economies linked to DOE-funded projects.

As DOGE moves forward with its review and restructuring plans, further announcements are expected regarding the specific timeline of the cuts and how the DOE will adapt to the reduced budget. The anticipated changes signal a major shift in federal priorities for energy policy and spending, placing greater scrutiny on the role of government in supporting clean-energy research and development.