Against Cuts to the LPO

For energy dominance and national security

Today, I joined a broad coalition of energy producers, policy experts, and industry organizations warning that rumored staffing cuts (potentially exceeding 50%) at the Department of Energy's Loan Programs Office (LPO) would critically undermine American energy and industrial strategy.

The coalition letter (pasted below) makes clear: gutting LPO would directly threaten the administration's energy dominance agenda by eliminating a crucial financing mechanism for nuclear power, domestic mineral production, and grid modernization.

The LPO functions as America's de facto industrial bank for energy infrastructure. Its historic successes include supporting the expansion of Tesla during its early growth phase, financing America's first utility-scale solar plants, and providing vital loan guarantees for nuclear projects like Plant Vogtle in Georgia.

Currently, the office is supporting numerous projects central to American competitiveness:

• The Thacker Pass lithium mine in Nevada ($2.26B loan) - crucial for reducing Chinese mineral dependence

• The first nuclear restart in U.S. history at Palisades Nuclear Plant in Michigan ($1.56B)

• Critical grid transmission projects like the Grain Belt Express ($4.9B) that will connect three regional grids

Without adequate technical staff to structure and monitor these complex deals, LPO will be unable to finance the energy infrastructure necessary for America’s economic and national security.

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April 14, 2025

The Honorable Chris Wright
Secretary of Energy
U.S. Department of Energy
1000 Independence Avenue SW
Washington, DC 20024

Re: Preserving the DOE Loan Programs Office as a Pillar of American Energy Dominance

Dear Secretary Wright:

As leaders in American industry, finance, and public policy, we write to express our strong support for the Department of Energy’s Loan Programs Office (LPO) and to underscore its importance to the administration’s economic and energy priorities.

For nearly two decades, LPO has served as a vital source of patient, long-term capital for domestic energy projects that advance U.S. strategic and economic interests. Today, LPO continues to play a critical role in financing infrastructure that enables new nuclear power development, revitalizes domestic mineral production, and modernizes both grid and gas systems—all central to the administration’s goals of lowering energy costs, reshoring manufacturing, and achieving energy dominance.

As budget and staffing decisions are weighed across the Department, we encourage the administration to ensure LPO remains fully equipped to carry out its mission. The office’s ability to underwrite and monitor large-scale energy projects depends on specialized technical staff and institutional capacity. Without them, the federal government risks slowing or stalling the diverse mix of energy projects that serve national priorities, such as new nuclear energy development for powering AI data centers—undermining investment certainty and weakening American competitiveness.

LPO-financed projects are not speculative—they are commercial-scale infrastructure efforts that reduce electricity costs, bolster domestic production, and rebuild American industry. Recent examples include:

• A long-standing loan for Plant Vogtle’s AP1000 reactors—the only new nuclear construction in the country—supported under the first Trump Administration.

• A $2.26 billion loan to Lithium Americas for the Thacker Pass project in Nevada—set to become one of the world’s largest lithium mines, helping secure U.S. supply chains and reduce dependence on China.

• A $1.56 billion loan guarantee to Holtec to restart the Palisades Nuclear Plant in Michigan—the first nuclear restart in U.S. history, returning 800 MW of reliable baseload to the grid.

• A $1.81 billion commitment to Arizona Public Service for transmission upgrades, solar deployment, and battery storage—strengthening the grid and reducing peak electricity prices.

• A $1.64 billion commitment to DTE Gas in Michigan for distribution system upgrades that enhance reliability and support low-cost natural gas service to households and industry.

• An up to $4.9 billion conditional commitment to the Grain Belt Express project, which will build a new 2500 MW transmission line connecting three regional grids. The project will enhance grid capacity to meet rapidly growing electricity demand from data centers and manufacturing.

• A $1.44 billion loan guarantee to Montana Renewables, LLC for expanding synthetic aviation fuel (SAF) production—positioning it to become one of the world's largest SAF producers with capacity of 300 million gallons annually, strengthening America's leadership in SAF and supporting regional agricultural development.

These are precisely the kinds of projects the administration has championed: American-made, job-creating, pro-growth, and foundational to national strength and security.

We respectfully urge you to preserve LPO’s robust financing capabilities. As your administration advances its energy and industrial agenda, maintaining the Loan Programs Office will be critical to delivering results.

Thank you for your leadership and commitment to American energy excellence.

Sincerely,

Chris Barnard, President, American Conservation Coalition

Abigail Ball, Executive Director, American Compass

Arcadia eFuels

Breakthrough Institute

Center for Climate and Energy Solutions

Clean Energy Buyers Association

Colorado Nuclear Alliance

Data Center Coalition

Direct Air Capture Coalition

Arnab Datta, Managing Director of Policy Implementation, Employ America

Energy Northwest

Exodys Energy

Thomas Hochman, Director of Infrastructure Policy, Foundation for American Innovation

Generation Atomic

Heirloom Carbon

Institute for Progress

International Brotherhood of Electrical Workers (IBEW)

Invenergy

Mothers for Nuclear

Native Nuclear

New American Industrial Alliance

Nuclear Energy Institute

Nuclear Innovation Alliance

Nuclear New York

Oklo Inc.

Charles Oppenheimer, Executive Director, Oppenheimer Project

Solugen Inc.

Paris Ortiz-Wines, Director, Stand Up for Nuclear

Third Way

Twelve

Velocys Inc.

World Energy

Zanskar Geothermal and Minerals

Zero6 Energy Inc.