Trump policies trigger $35 billion clean energy investment collapse, costing thousands of jobs

The United States experienced a dramatic reversal in clean energy momentum last year, with companies canceling $35 billion worth of renewable projects—a stark contrast to the combined $3.4 billion in cancellations during 2023 and 2024, according to a new report from clean energy think tank E2.

The massive pullback began immediately after Trump’s November 2024 election victory, as companies responded to signals that the new administration would prioritize fossil fuels over renewable energy. “For every dollar announced in new clean energy projects, companies canceled, closed, or downsized roughly three dollars’ worth,” the report found. Trump’s subsequent actions—including pausing offshore wind leasing, cutting funding for clean energy projects, and supporting the “One Big Beautiful Act” that eliminated crucial tax credits—created widespread industry uncertainty.

Electric vehicle and battery manufacturing bore the brunt of the damage, losing approximately $21 billion in investment and an estimated 48,000 potential jobs. Michigan suffered the heaviest losses with 13 canceled projects worth $8.1 billion, reflecting the state’s central role in America’s auto industry. Illinois, Georgia, and New York also experienced billions in lost investments.

However, some hope remains for recovery. Many automakers redirected rather than completely abandoned their investments—Ford, for example, shifted its Ohio facility from all-electric to hybrid vehicle production. “The silver lining view is they’re hopefully maintaining those facilities so that when there is certainty, those factories will still be available for making EVs down the road,” noted E2’s Michael Timberlake.