Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

Politics

The Coming Bloodbath at the Department of Energy

More than 2,500 employees have applied for a buyout program. The departures, if approved, could gut the agency’s in-house bank and manufacturing office.

•
The Department of Energy.
Heatmap Illustration/Getty Images

The Trump administration is overseeing a chaotic set of changes at the U.S. Department of Energy that could gut its in-house bank and transform one of the government’s key scientific and technology development agencies.

In the coming days, the department could see thousands of its employees — nearly one-fifth of its staff — resign in one of the largest headcount reductions in memory. At the same time, it could cancel billions of dollars in next-generation energy R&D projects in Ohio and other states.

Some of these changes have been planned for weeks. But in recent days, department officials have appeared to grow anxious behind the scenes about the scale of the transformation. Some Trump officials have reached out to individuals, offering them financial incentives in order to discourage them from taking the buyout, according to administration documents and accounts from multiple department employees who were not authorized to speak publicly.

If the full set of changes goes through, then the Department of Energy may be so depleted that it will be unable to carry out the Trump administration’s goals, such as bolstering the power grid or building new power plants.

The upheaval is a result of two policies coming to a head: the department’s “deferred resignation program,” which offers federal employees the equivalent of a severance deal to stop working immediately; and an internal effort to cancel or hinder major industrial policy projects initiated by the Biden administration.

It also arises from agency workers’ confusion and fear over who will ultimately make personnel decisions at the Energy Department, the agency’s own leadership or employees of Elon Musk’s Department of Government Efficiency.

In a statement, an Energy Department spokesperson said the agency was acting in accordance with the president’s executive order creating the government efficiency department.

“The Department of Energy is conducting a department-wide review of its organizational structures to ensure operations are best positioned to accomplish the DOE mission and align with the Trump administration’s priorities,” Andrea Woods, the spokesperson, said. “No final decisions have been made and multiple plans are still being considered.”

The deferred resignation program, which was started by Musk earlier this year, allows employees to resign immediately but receive full pay and benefits through the end of September.

When the resignation program was first made available in February, relatively few department employees took the offer, which resembles a buyout. Many were unsure that they would actually get paid if they accepted the deal.

But employees who took that deal have been getting paid — and at the end of March, Energy Secretary Chris Wright reopened the program and encouraged more employees to accept the resignation deal. He warned that President Donald Trump had ordered the department to conduct a mass “reduction in force” and said that accepting the buyout now could “mitigate the effect of potential involuntary separations.”

This time, the response has been very different. More than 2,700 Energy Department employees have applied for the voluntary resignation program, according to multiple employees who weren’t authorized to speak about the matter publicly. The department recently extended the program’s deadline to this Friday.

If those resignations are accepted, they could reduce the department’s head count by as much as 17%. More resignations are anticipated before the final deadline. The Department of Energy had 15,795 full-time employees as of last year, according to government data.

Some offices have been harder hit than others. The agency’s in-house bank, the Loan Programs Office, could lose half its permanent employees, according to one person who wasn’t authorized to speak about the matter publicly. Analysts have said that the office is essential to countering the low-cost loans that China gives its industrial firms.

Other offices — including those meant to bolster domestic manufacturing and strengthen the power grid — could also lose as much as half their permanent staff.

Many of these cuts are so deep that they could damage the agency’s ability to implement Trump’s agenda. The president has spoken about supporting the nuclear, natural gas, and coal industries — as well as spurring a new mining boom — but he will struggle to meet these goals if the agency is understaffed. The Office of Policy, which directly supports the administration’s agenda, is likely to lose dozens of staff to the program.

Some department leaders have seemingly realized that they may soon manage empty rooms. In some offices, Trump appointees have offered promotions or retention bonuses to career staff to discourage them from leaving, according to employees who weren’t authorized to discuss the matter publicly. The bonuses can run to as much as 25% of an employee’s annual salary, according to an internal email reviewed by Heatmap.

But many employees are worried that a coming round of layoffs led by the Department of Government Efficiency could override the preferences of the Energy Department’s own officials, terminating even favored employees. The Musk-led efficiency department hopes to cut more than half of the loan office’s full-time staff, according to one individual. It has placed commissars inside most federal agency buildings, including the Energy Department headquarters in Washington, D.C.

Woods, the Energy Department spokesperson, declined to comment on the number of employees who have applied for the resignation program because it is still open for applications. The department will review and approve each resignation request individually, she said, and it will retain employees working in “public safety, national security, law enforcement” and other “essential” roles.

Yet it is possible to estimate the number of employees who have asked to resign because the department creates a numbered receipt for each employee who enrolls in the program. The numbers, which have increased sequentially, now exceed 2,700, according to multiple people with direct knowledge of the receipts who aren’t authorized to speak publicly.

The resignation turmoil comes as the agency considers making other big changes to its policies. Trump officials are in the process of reviewing more than 30 advanced energy demonstration projects slated to be built nationwide, according to documents obtained by Heatmap News. The 2022 Infrastructure Investment and Jobs Act spent more than $6 billion to fund demonstration programs focused on carbon capture, clean hydrogen, and re-industrialization.

CNN reported this week that one of the projects on the chopping block is a $500 million grant to build a next-generation steel mill in Middletown, Ohio — the hometown of Vice President JD Vance.

The Energy Department has already been experimenting with revoking contracts that the government had previously signed. It remains unclear whether the department can suspend these contracts legally.

Last week, China announced more than 100 new industrial-scale demonstration projects to support clean steel production and carbon capture. The country created 47 new advanced energy demonstration projects last year.

🔒

You’ve reached your free article limit

Subscribe to Heatmap News for unlimited access to daily energy and climate coverage.
To continue reading
Create a free account or sign in to unlock more free articles.
or
Please enter an email address
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
AM Briefing

PoorWeave

On X-energy’s next plant, Italian power, and Chinese solar exports

A data center interior.
Heatmap Illustration/Getty Images

Current conditions: A new nor’easter is washing the ocean over North Carolina’s Highway 12 right as crews complete reconstruction on the Outer Banks thoroughfare following last month’s storm • After whipping Mexico’s Pacific Coast with heavy rains, Hurricane Trudy has weakened to a Category 1 storm • Super Typhoon Champi knocked out power for more than half of Guam before barreling toward the Philippines as a potential Category 5 storm.


THE TOP FIVE

1. Wall Street’s AI rout ends for chipmakers, but not for indebted cloud computing giants

Last week was the worst week for the tech-heavy Nasdaq 100 Index since President Donald Trump’s tariffs roiled the market in April 2025. The reason? Hotter than expected federal data on inflation fueled fears of an interest rate hike that could prove devastating to the buildout of artificial intelligence infrastructure. Investors were already worrying the physical investments would cost more than giants such as ChatGPT-maker OpenAI or Claude-creator Anthropic are set to earn. But on Monday, semiconductor makers such as Oracle, Intel, and Micron Technology rallied as the AI rout came to an end. Yet CoreWeave, the cloud-computing heavyweight that led the selloff last week, closed slightly lower. The issue, investors told CNBC, is the company’s debt load. “The market tends to get worried about companies that have refinance risk when rates are higher, and CoreWeave was a little bit of the poster child,” John Lloyd, global head of multi-sector and corporate credit at Janus Henderson, whose firm owns CoreWeave bonds due in 2031, told the broadcaster. “They need the debt markets in order to grow, in some form or fashion.” That CoreWeave came close to bouncing back at all comes down at least in part to Ark Investment Management chief Cathie Wood opting to buy about $12 million of shares in the company amid the market plunge last week, a play for which The Street notes she’s known. Notably, Oracle, which was previously dubbed the “canary in the coal mine” for concern over AI debt, closed just 1% higher before plunging in after-market trading.

Keep reading...Show less
Yellow
Climate Tech

Exclusive: Veckta Raises $11 Million to Help Businesses Buy Onsite Solar and Storage

The company simplifies the process of getting consistent, apples-to-apples bids.

Solar panels.
Heatmap Illustration/Getty Images

With commercial electricity prices steadily climbing, many businesses and real estate owners are increasingly eager to generate and store their own power onsite, cutting their bills and making costs more predictable. But figuring out whether solar and storage can actually pencil out — and under what conditions — can be a nightmare. Ask a handful of developers for a quote and you might get a rooftop solar array from one, a ground-mounted solar and battery system from another, and a gas turbine from a third, each with its own size, price, and financing terms.

That leaves buyers comparing apples to oranges. And for businesses evaluating a portfolio of potential projects, the process gets even messier. “These are very local-centric systems. Different interconnection requirements, different permits, different suppliers,” Gareth Evans, CEO of the onsite energy planning and procurement startup Veckta, told me. “There are hundreds of solar developers in every state.” The hard part, he added, is “knowing what supplier to go with, how to ask them the right questions in the right language, in the right format, so that you’re getting consistent bids back that you can compare and contrast.”

Keep reading...Show less
Yellow
Daily Briefing

China’s Thriving New Energy Exports

The Iran war has been a gift to the country’s vehicle, solar, and battery business.

Xi Jinping.
Heatmap Illustration/Getty Images

This is Heatmap Daily, a weekday evening digest written by our executive editor.

Happy Monday and welcome back. For months now, we’ve been talking about how the U.S. and Israel’s war in Iran has been a boon for electric vehicles, clean energy, and (unfortunately) coal.

Keep reading...Show less