Twenty-five congressional Democrats wrote to Energy Secretary Chris Wright Thursday urging against the cancellation of already-issued loans issued through the Energy Department’s Loan Program Office (LPO), saying it would be both illegal and a self-inflicted economic wound.
The members, led by Rep. Sean Casten (D-Ill.), referred to “alarming reports” that the department is considering canceling LPO loans, which would put it in violation of legally binding contracts. The letter requests details on whether the department is actually considering such a move, as well as the legal authority invoked to do so, the projected cost to cancel them and the criteria that would be used to decide on cancellations.
The letter also outlines the projects selected through the LPO over the years, including a $465 million loan to Tesla Motors. Tesla CEO Elon Musk has been placed in charge of the Department of Government Efficiency (DOGE) by President Trump. DOGE's actions have drawn pushback from both congressional Democrats and federal courts over the executive branch’s capacity to withhold funds already authorized by Congress.
The letter also cites Michigan’s Holtec Palisades Nuclear Plant, which, when reopened, will be the first repowered nuclear plant in U.S. history. More than 160 applicants are currently seeking over $200 billion in support through LPO loans.
Casten and the other members framed the value of the LPO in national security terms as well, noting that it comes as China has ramped up nuclear energy production.
“Under your leadership, by making thoughtful choices, the Department of Energy can build on the previous administration’s work and seize a historic opportunity for the United States’ energy economy,” the members wrote. “This would entail taking the global lead in next-generation energy technology, accelerating the renaissance in U.S. manufacturing, and meeting the sky-rocketing U.S. demand for electricity, including from the AI-driven data center boom.”
The Hill has reached out to the Energy Department for comment.
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