U.S. Energy Department Overhauls Energy Loan Portfolio, Targets $83 Billion in Biden-Era Commitments

The U.S. Energy Department on Jan. 22 announced a major restructuring of its federal energy lending operations, stating that the Office of Energy Dominance Financing will restructure, revise, or eliminate more than $83 billion in loans and conditional commitments tied to the Biden administration’s portfolio. The move is framed as a portfolio reset intended to tighten taxpayer protections and realign federal financing with reliability and affordability priorities.

The action follows a first-year review of approximately $104 billion in principal loan obligations from the Biden-era loan book, including nearly $85 billion advanced during the final months after election day. The review examined borrowers and financial commitments for risk exposure and prudence, with a focus on whether investments supported lower-cost, secure, and dependable energy outcomes.

A key component of the restructuring is a technology shift away from government-backed renewable commitments and toward resources positioned as firm capacity. The office reported eliminating around $9.5 billion in subsidized wind and solar investments and replacing those commitments with financing tied to natural gas projects and nuclear uprates, linking the change to stronger grid reliability and lower system costs. In total, nearly $30 billion has been completed or is underway for de-obligation, with an additional $53 billion under revision. 

The announcement also highlighted remaining lending capacity, noting more than $289 billion in available loan authority under expanded eligibility criteria associated with the administration’s tax agenda. The revamped mission emphasizes lowering electricity prices, encouraging private investment, supporting U.S. industrial competitiveness, and enabling infrastructure to meet rising demand, including load growth tied to data centers and artificial intelligence.