Since taking office in January, President Donald Trump has:
The Interior Department, led by Secretary Doug Burgum, now requires his personal sign-off on 69 distinct approvals for renewable energy projects on federal land, a move industry groups say creates an administrative bottleneck. The American Clean Power Association called the measures “a troubling challenge for critical infrastructure investment.”
E2’s analysis shows $11.7 billion of the stalled investments are in Republican districts. The job losses affect construction crews, manufacturing plants, and local suppliers. Some major companies have scaled back significantly—French energy firm Engie expects to invest less than half its usual $2–$3 billion in the U.S. this year.
Meanwhile, the Department of Transportation has proposed a 1.2-mile setback for wind turbines from highways and rail lines, while the EPA has signaled it may rescind the “endangerment finding” that underpins U.S. greenhouse gas regulation.
The policy changes come as U.S. electricity demand is projected to rise sharply—BloombergNEF estimates demand growth of 92% from 2023 levels by 2035—driven largely by data centers and artificial intelligence workloads. While natural gas turbine orders are backlogged and nuclear capacity remains years away, analysts warn that restricting renewables could raise long-term electricity costs.
Renewable projects on federal land accounted for just 4% of U.S. generation in 2024, but DOE projections before January 2025 estimated that share could triple by 2035. Curtailing development could slow progress toward that target, affecting state-level clean energy mandates in markets from California to New York.
“The impacts will stretch beyond just the federal land,” said Eric B. Beightel, former executive director of the Federal Permitting Council, noting that many private land projects require federal reviews for transmission or environmental compliance.
Large developers such as NextEra Energy and AES Corp. say they’ve locked in tax credits for much of their pipeline, but smaller firms without similar capital reserves face uncertain futures. “It will be more difficult for the smaller, less capitalized developers in this environment,” AES CEO Andrés Gluski told investors in August.
