Ferguson condemns $1.1B federal energy funding cuts in WA

OLYMPIA, Wash. — Gov. Bob Ferguson on Thursday condemned the Trump Administration’s decision to revoke over $1.1 billion in federal energy funding for projects across Washington state. 

Most significantly, the administration has pulled $1 billion from the Pacific Northwest Hydrogen Hub (PNWH2), a regional initiative poised to generate more than 10,000 jobs and over $5 billion in local investment.

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“It is outrageous that this administration is using a government shutdown to punish blue states like Washington,” said Ferguson. “These projects will lower costs, create jobs, and reduce air pollution. We’re working with the Attorney General’s Office to fight this illegal action.”

The Department of Energy selected the PNWH2 in 2023 as one of seven Regional Clean Hydrogen Hubs under the Bipartisan Infrastructure Law. Managed by the Pacific Northwest Hydrogen Association, the hub serves Washington, Oregon, Idaho, and Montana. It was designed to develop a clean hydrogen economy using the region’s hydropower and clean energy resources.

Sen. Maria Cantwell (D-WA), who helped craft the H2Hubs program, called the cuts “unprecedented and corrupt.”

“Our region was awarded this Hub following an intensive national competition because we showed we had the pioneering researchers, clean energy resources, and over $5 billion in committed local investment that it would take to show that clean hydrogen can work,” said Cantwell. “I will be fighting to restore these funds.”

Four Washington-based PNWH2 partner projects are directly affected:

Alare Renewables (Whatcom County): $102.8 million

Atlas Agro (Benton County): $157.3 million

Northwest Seaport Alliance (King/Pierce counties): $11.8 million

Lewis County Transit (Lewis County): $36.4 million

In total, 11 Washington energy projects were defunded, threatening progress toward the state’s net-zero emissions goal by 2050. Additional affected projects include:

Nippon Dynawave (Cowlitz County): $46.6 million

PACCAR Inc. (Skagit County): $68 million

CleanFiber Inc. (Lewis County): $10 million

Spokane Edo LLC (Spokane County): $5.3 million

SilFab Solar WA Inc. (Skagit County): $3 million

Washington State University (Whitman County): $9.8 million

In July 2024, the Department of Energy awarded PNWH2 $27.5 million in Phase 1 funding for initial planning. The full $1 billion federal investment was expected to be matched by over $5 billion in local funding and create over 10,000 jobs, mainly in rural areas.

Ferguson and Cantwell both pledged to take legal and legislative action to reverse the cuts.

“This is not just an attack on Washington,” said Ferguson. “It’s an attack on clean energy, economic opportunity, and the future we are building for the Pacific Northwest.”