U.S. Secretary of Energy Chris Wright announced that the U.S. Department of Energy (DOE) will not move forward with designating three proposed National Interest Electric Transmission Corridors (NIETCs), selected in December 2024 to advance in the review process. The projects concerned are the Lake Erie–Canada Corridor, the Southwestern Grid Connector Corridor and the Tribal Energy Access Corridor. The decision comes as the U.S. Congress is separately reviewing other reforms affecting energy infrastructure, including four bipartisan reforms to hydropower licensing. According to the DOE, an extensive review including public feedback and stakeholder input showed that the current designation process should not continue for these three corridors.
A reversal in federal transmission policy
In a statement, Mr. Wright said transmission policy must serve the American people rather than special interests, stressing the need to ensure affordable, reliable and secure electricity. The secretary said the Trump administration intends to strengthen the national grid with policies it describes as common-sense. The DOE states that the current designation framework proved ineffective at improving grid reliability and lowering electricity costs.
The previous administration had presented the three corridors as a way to accelerate decarbonization of the U.S. power system. According to the DOE, the process also contributed to confusion and concern in some communities about the scope and intent of NIETC authority. These factors led to the abandonment of the three designations proposed in 2024.
Federal financing directed toward existing infrastructure
The DOE highlighted several recent financing operations supporting electric transmission. In October 2025, the DOE’s Office of Energy Dominance Financing (EDF) closed a $1.6 billion loan guarantee for AEP Transmission to reconductor and rebuild nearly 5,000 miles of transmission lines across five states. In February 2026, EDF closed loans totaling $26.5 billion for Georgia Power and Alabama Power, subsidiaries of Southern Company, to support generation and grid investments including more than 1,300 miles of transmission and grid enhancement projects.
In March 2026, the DOE’s Office of Electricity (OE) announced a $1.9 billion SPARK funding opportunity aimed at increasing grid capacity, reliability and affordability. In July 2026, EDF closed a loan of approximately $3.3 billion to AEP Texas to build, rebuild or reconductor more than 2,800 miles of transmission lines. That same month, OE released the draft 2026 National Transmission Needs Study, identifying transmission needs driven by growing electricity demand.