Wisconsin Could Lose $130 Million In Energy-Related Grants Under Trump Admin Cuts

More than $130 million in Wisconsin clean energy-related projects are at risk as the Trump administration moves to cut up to $24 billion in projects originally approved by the Biden administration.

The projects are on a list that covers three groups of cuts proposed in May, on Oct. 2 and this past week. The online news outlet Semafor reported the third set of proposed cuts, which alone totals $12 billion, on Tuesday, Oct. 7, and published a link to a list that covers all three groups.

“However, it’s not clear whether, or when, the full list of cancellations will be enacted, or if President Donald Trump is instead looking to use them as leverage in negotiations over the [federal government] shutdown,” Semafor reported.

The Wisconsin grants on the list are a mix of projects that help boost energy efficiency, including supporting the expansion of energy storage battery systems. One potential casualty is more than $1 million to prepare young people to enter apprenticeships in the skilled trades.

Clean energy holds the promise of addressing air pollution and climate change as well as revitalizing the state’s industrial base, said John Imes, director of the Wisconsin Environmental Initiative (WEI), a nonprofit that advocates policies benefiting the environment and the economy.

“These are all win-win that all of us want regardless of our political affiliation,” Imes told the Wisconsin Examiner. “This is all bottom-line stuff.”

Rolling back projects that enhance cleaner and more efficient use of energy will likely increase the cost of energy, Imes said.

“It means higher electric bills, higher energy bills, fewer choices and lost jobs,” he said. “We’re going to lose momentum.”

Battery power and rural grid upgrade

The two largest Wisconsin projects on the Department of Energy list of targets involve one company, Alliant Energy. They account for more than half of the Wisconsin funds targeted for cancellation.

The projects are being undertaken by Alliant’s Wisconsin Power & Light unit. They include a $50 million grant for upgrading the rural electrical grid and $30 million for a power storage system using a technology based on carbon dioxide, which is to be built near Portage, Wisconsin.

“We understand the Administration and Department of Energy (DOE) are working through their budgets and have notified some businesses of changes to grant announcements,” said Cindy Tomlinson, Alliant senior manager for communications, in an email message last week.

“At this time, we have not been made aware of any changes to the announced DOE grants for our Alliant Energy projects,” Tomlinson said. “We are optimistic the value and viability of these projects is clear and that they will remain fully funded. These projects deliver economic and customer benefits.”

The electrical grid upgrade project received a conditional commitment from the energy department in December, but a final award agreement hasn’t been executed, Tomlinson said, and no federal funds have been received or spent.

The federal grants accounted for about one-third of the total planned investment for each project. If the grid upgrade grant is canceled, the project is still expected to go forward, Tomlinson said, “however at a slower, more gradual pace than the fast, concentrated fashion outlined in our grant application.”

Other potentially affected grants include $28.7 million for Johnson Controls, based in the Milwaukee suburb of Glendale, to support the company in its expansion of heat pump manufacturing.

The grant’s total value was $33 million at the time it was awarded to the company. According to USAspending.gov, a federal site that tracks the status of federal outlays, the business has received $4.4 million of the total.

Johnson Controls announced the grant in November 2023, part of an investment to scale up heat pump manufacturing at plants in Texas, Kansas and Pennsylvania and increase production by 200%, the company said at the time.

The company did not respond to inquiries Thursday and Friday by email and by telephone about the status of the grant or its planned heat pump manufacturing expansion.

Energy efficiency and innovation

Another Wisconsin recipient with grants on the list that are slated for elimination is Slipstream, a Madison-based nonprofit that provides consulting services on energy efficiency and innovation.

“We’re trying to make our energy systems more efficient and better so everybody’s paying less for energy,” said Scott Hackel, Slipstream’s vice president for research.

Hackel said Slipstream is working with other organizations on the list of targeted projects, and some of those organizations have been notified of grant terminations.

Slipstream also has two direct grants on the list, but has not received any notification that those grants are being terminated, Hackel said.

Slipstream had been awarded $5.2 million for work on equipping buildings with technology that enables them to automatically manage their power demand — reducing the building’s electrical load when demand on the grid is high and amping up the load when broader demand eases.

The organization is in the middle of a project implementing demand management technology in a group of buildings. The information gained from that test could be used to develop incentive programs for building owners to adopt that kind of technology, Hackel said.

If that gets cut off before it’s finished, other buildings in Wisconsin “would not have this example to look to,” he said.

A second grant awarded to the organization, $4 million, is to be used to train inspectors, building designers and others in how to effectively comply with and make the best use of building codes, particularly energy codes.

“Everything we’re doing is trying to make buildings and homes more affordable to live in with lower utility bills,” Hackel said. “If we’re not able to do that, that’s also a cost to people in Wisconsin.”

Two Universities of Wisconsin grants, one for $10 million and the other for $2.9 million, are on the list. Both involve projects to test technology innovations, according to the federal grant information documents.

‘Electric city’ upgrades and a job-training program

A grant for the city of Kaukauna, Wisconsin, to install battery storage and make related electrical grid upgrades is also on the list. The original grant totaled $3 million, and so far $59,362 has been paid out, according to USAspending.gov, leaving $2.95 million that could be canceled.

The storage system is to bolster Kaukauna’s hydroelectric power generation operation, which dates to 1913 and led to the community’s adoption of “Electric City” as its nickname.

“Collateral damage from the Trump administration’s remarkably poor governance record continues to collect, this time in Kaukauna,” said Outagamie County Executive Tom Nelson. “I can’t think of something more insulting than making the electric grid of a place known as ‘Electric City’ less safe or efficient.”

Also on the list is the Wisconsin Regional Training Partnership, a Milwaukee nonprofit that provides training and certification to prepare people to enter apprenticeships in the skilled trades. WRTP was awarded a $1.5 million grant for training in skills related to transportation electrification. So far $112,470 has been paid out.

Dan Bukiewicz, head of the Milwaukee Building Trades Council and co-chair of the WRTP board of directors, said that the board hasn’t been notified that its grant might be at risk of being taken away by the Trump administration.

“I won’t say we’re surprised,” Bukiewicz said. “They’re just trying to roll back a lot of the green energy and infrastructure [investments]. … It’s trying to make time stand still, and it just won’t if the United States is going to compete globally.”

WRTP students typically come from underserved communities and are the most in need, Bukiewicz said. The program’s training emphasizes job safety, introduces students to the construction industry, equips them with basic skills that an apprenticeship will build on, and acquaints them with how the industry and the technology are changing and where they might find a place that suits them.

If the federal grant is pulled, “these dollars are irreplaceable,” Bukiewicz said. “It’s not just taking money away and eliminating classes. It’s eliminating opportunities and a chance for generational change for people who really need it.”

Wisconsin could lose $130M as Energy Department targets grants awarded under Biden was originally published by the Wisconsin Examiner.