Watchdog to probe cancellation of energy grants

By Nico Portuondo | 12/17/2025 03:57 PM EST

The Department of Energy’s inspector general will audit the revocation of billions of dollars in funding.

Sen. Adam Schiff speaks.

Sen. Adam Schiff joined other California Democrats in requesting scrutiny of Energy Secretary Chris Wight's decision to cancel $8 billion for projects in mostly Democratic states. Ben Curtis/AP

The Department of Energy’s internal watchdog will investigate the cancellation of roughly $8 billion in clean energy grants — most of them in Democratic states — after a group of California lawmakers requested the probe.

California Democratic Sens. Adam Schiff and Alex Padilla, along with Rep. Zoe Lofgren, released correspondence this week from DOE acting Inspector General Sarah Nelson indicating her office will look into the agency’s decision to terminate the awards.

“The Office of Inspector General recently announced an audit which will review the Department of Energy’s processes when cancelling financial assistance and whether those cancellations were in accordance with established criteria,” Nelson wrote.

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The audit follows an October letter to Nelson from dozens of California Democrats who requested a “full investigation” because of their belief that DOE acted illegally when it moved to cancel nearly $8 billion for hundreds of projects.

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