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Trump cancels $4.9B Grain Belt Express loan, halting major green energy project

SALINE COUNTY, Missouri — In a significant reversal for the United States’ already lagging clean energy infrastructure, the Trump administration on Tuesday abruptly canceled a $4.9 billion federal loan guarantee for the Grain Belt Express, an 800-mile transmission line designed to deliver wind and solar power from Kansas across the Midwest to the East Coast grid.

The move marks a stark escalation in the administration’s retreat from renewable energy projects, undercutting one of the largest green infrastructure plans in the country. The Department of Energy claimed the developer, Invenergy, “did not need federal financial support,” despite the project’s role in stabilizing regional grids and reducing consumer energy costs.

The decision was welcomed by Republican lawmakers and conservative landowner coalitions, who framed the project as a “scam” forced on farmers. Missouri Attorney General Andrew Bailey and Senator Josh Hawley led the charge, portraying the line as an elitist energy agenda imposed by outsiders. Their arguments focused less on the merits of clean energy and more on the populist grievance of eminent domain — a legal tool the company had used to secure land along the route.

“We have stopped this land grab,” Bailey said in a statement on social media. “No Missouri farm will be turned into an energy corridor for the East Coast elite.”

In stark contrast, Invenergy maintains the Grain Belt Express is not just viable without federal backing, but indispensable. “This is America’s largest power pipeline,” the company said in a statement. With or without the loan, they argue, the project is expected to create 4,000 jobs, save consumers over $52 billion in energy costs over 15 years, and stabilize aging grid networks vulnerable to blackouts and climate-related shocks.

Green energy advocates say the cancellation represents a dangerous precedent — one where partisan politics trample over infrastructure needed to meet national energy demands. “You can’t support AI growth, data centers, electric vehicles and industrial expansion if your grid is stuck in the 20th century,” one energy policy analyst told The Eastern Herald.

Experts warn that canceling transmission projects like Grain Belt not only slows the decarbonization of America’s power systems but also restricts access to low-cost wind and solar generated in rural regions. Without robust interregional transmission, renewables remain stranded in the prairie while energy-hungry urban centers stay tethered to fossil fuels.

The timing of the decision is also telling. Just weeks ago, several tech giants urged federal regulators to accelerate grid upgrades to handle rising demand from AI data centers. Yet under Trump, energy policy has tilted sharply toward fossil fuels and nuclear, with renewable projects facing increased scrutiny or outright cancellation.

Backlash continues to grow in farming communities as well. While some rural landowners oppose the project, others — especially those negotiating lease payments — express frustration that a multimillion-dollar economic opportunity is being hijacked by political theatrics.

The Grain Belt Express has been nearly 15 years in the making. Now, without federal backing, it must rely entirely on private capital, opening the door to delays, litigation, and further political meddling.

According to the Associated Press, the Department of Energy’s decision was based on “a reevaluation of project viability,” though no evidence was provided that the project failed to meet financial or technical requirements.

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