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The Transportation and Infrastructure Committee released a budget proposal that attempts to claw back nearly $9 billion in grants.

The House Transportation and Infrastructure Committee released the first draft of its portion of Trump’s big budget bill on Tuesday, and it includes the first official swipe at the Inflation Reduction Act of the months-long process ahead.
Remember, the name of the game for Republicans is to find ways to pay for Trump’s long list of tax cuts. The budget framework Congress passed two weeks ago assigned eleven House committees to craft proposals that would each raise or reduce revenue by a specific amount to accomplish Trump’s agenda.
The Transportation Committee proposal contains one new revenue-generating program, placing a $200 annual fee on electric vehicles and $100 fee on hybrid vehicles, alongside a $20 fee on conventional cars. The money would go into the Highway Trust Fund, which is currently financed mostly by the gas tax — and which, of course, EV owners don’t pay.
But the draft also includes a list of “rescissions” of unobligated funds from seven IRA grant programs. While the Biden administration awarded the vast majority of the money allocated to the programs listed, in many cases the recipients never reached a final project agreement with the government. That means a lot of the funding can, in fact, be clawed back.
Take the first item on the list, the Alternative Fuel and Low Emissions Aviation Technology Program. The IRA allocated $291 million for grants to support producing sustainable aviation fuel and developing low-emission aviation technologies, and the Biden administration awarded the full amount to 36 recipients in August of last year. It’s not clear how many reached final project agreements with the Federal Aviation Administration, however. A quick scan of the government’s database of awards is missing a $25.7 million grant to oil giant BP to produce sustainable aviation fuel at its refinery in Washington State, but it does include the full obligation of $240,000 to the City of Atlanta to conduct a study on deploying SAF at Hartsfield-Jackson Airport.
Grants aren’t always logged in USASpending.gov in a timely manner, so it’s possible BP does have an agreement in place. Among the other awardees that I could not find listed in the database were World Energy, which was awarded nearly $22 million to install infrastructure enabling Los Angeles International Airport to get deliveries of SAF, and Buckeye Terminals, which got $24 million to upgrade four SAF storage facilities in the midwest. Republicans tend to support biofuels, so it’s somewhat surprising they went after this program — especially since $291 million is chump change on the scale of a multi-trillion-dollar budget.
We know a bit more about the second item on the list, the Neighborhood Access and Equity Grant Program. This one allocated just over $3.2 billion to the Federal Highway Administration to award state and local governments with grants to improve walkability and transportation access, to mitigate transportation-related pollution in disadvantaged communities, and to improve transportation equity. The advocacy group Transportation for America found that of the nearly 100 awards the Biden administration announced from this program in 2023, totaling more than $3.1 billion, only 25 projects may have reached a final project agreement, per USASpending.gov. The group says this means it’s possible that nearly the entire $3 billion is up for grabs.
Other funding targeted includes more than $3.3 billion across three allocations to the General Services Administration to improve the efficiency of government buildings, prioritize lower-carbon building materials, and invest in other “emerging and sustainable” building solutions. The Government Accountability Office published a well-timed report about these three programs today, noting that while 99% of the money has been awarded, only half has been obligated, leaving more than $1.7 billion for Congress to take back.
Lastly, the proposal lists $2 billion in grants for states and local governments to use low-carbon materials in road projects. The Department of Transportation awarded $1.8 billion of the money to 39 states last year, although again, it's unclear how many of these awards have been obligated.
Having said all that, let’s assume for a moment that the full amount allocated to each of the programs was available to Congress to claw back. That would come to just under $9 billion of the $10 billion of deficit reductions the Transportation and Infrastructure Committee is required to find under the special rules governing the budget bill.
But the draft bill also contains huge amounts of new spending, including allocating more than $20 billion to the United States Coast Guard for border security and $15 billion for upgrades to Air Traffic Control systems. The nonprofit Union of Concerned Scientists estimates that the new fees on EVs and other vehicles could raise between $7 and $33 billion over the lifetime of the bill, which is not enough to pay for all of that. (They also note that it would barely make up for the more than $200 billion deficit in the Highway Trust Fund.) So if Republicans want to keep those provisions, they may have to find more cuts. They’ll likely have to find more anyway, depending on how much of the IRA money has been obligated.
I’ll leave you with a reminder that I’ll be repeating ad nauseam over the next few weeks or months as Congress hammers out its budget bill: This is just a first pass, and this is all subject to change. The Transportation and Infrastructure Committee will be holding a markup of the proposal on Wednesday, where it will debate each line and make changes before voting on whether to advance it.
Most of the Inflation Reduction Act programs come under the aegis of the Energy and Commerce and Ways and Means committees, neither of which have published any bill text yet. But we’ll be here for you when they do.
Editor’s note: This story has been updated to remove a reference to Gevo, a sustainable aviation fuel producer, which told Heatmap that it declined its awarded grant due to changed business priorities. It has also been update to include the Union of Concerned Scientists’ revenue estimate.
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John Berger’s new company, Otovo, is eyeing a U.S. listing by the end of the year.
Here’s a little secret I learned from my father and grandfather, both of whom spent decades-long careers selling cars around New York City: Dealerships make real money not from sales and leases, but from providing the repairs, oil changes, and tune-ups on those vehicles long after they’re driven off the lot. It’s a big business. While AAA does not release its national revenue figures, the nonprofit federation of automotive clubs that provide speedy service to drivers stranded with a flat tire or overheated engine is estimated to pull in billions of dollars per year.
That’s the kind of business John Berger set out to build during his 13 years as chief executive of Sunnova. But the Houston-based rooftop solar giant racked up so much debt from the leasing business that the publicly-traded firm filed for Chapter 11 protections last June after the Trump administration canceled a $3 billion loan. His dream of deploying enough panels to sustain the company on servicing subscriptions fizzled.
Three months after Sunnova’s collapse, Berger returned to the industry with a new startup dedicated to providing round-the-clock maintenance for solar, battery, and generator systems. The new startup, Otovo, built off the existing name and business model of an eponymous Norwegian company that merged with Berger’s Texas-based American firm in December.
Now, Heatmap has learned, the company has hit a major milestone.
As of Thursday morning, Otovo has racked up 30,000 customers, two-thirds of whom are paying recurring subscription fees ranging from $9 to $49 per month for maintenance service, with the pricier memberships providing the fastest guaranteed fixes.
Otovo’s first-year growth — which exceeded the company’s own initial estimates — may say as much about the state of the solar market as it does about the startup itself.
Surging inflation, supply chain shocks from the wars in Ukraine and Iran, and seesawing policy incentives in the United States have put the squeeze on many solar installers, spurring a wave of bankruptcies on both sides of the Atlantic. Berger — no stranger to how it felt to be the insolvent counterparty on the other side of the negotiating table — seized on the opportunity. As installers such as California’s Solar Service Professionals, Germany’s Zolar, the Netherlands’ Soly, or Norway’s Solcellespesialisten went under, Otovo bought their customer books.
“All these orphaned customers? Well over 37 million exist between the European Union and the United States,” Berger told me. “That’s an enormous market, and it’s an enormous amount of pain when you have rising power bills.”
That orphaned customer figure, he said, was an estimate based on data from the trade group Solar Energy Industries Association, the consultancy Wood Mackenzie, and individual companies such as generator giant Generac, whose units run on natural gas, propane, and diesel.
For now, about two-thirds of Otovo’s customers are in Europe, where the company has traded on the Oslo stock exchange since before Berger’s involvement. But Berger said the long-term goal is to see its subscriber base split evenly between the U.S. and Europe.
That could be a challenge. While the European subsidies for solar vary by country, the continent is typically more “methodical and deliberate” about government policy, he said, meaning those nations avoid the “whipsaw” of American politics, where Democrats lavish support on solar and batteries and Republicans yank that funding away.
“It wouldn’t surprise me the least bit,” he said, if Congress brings back an enhanced 25D, the Biden-era tax credit for rooftop solar systems that President Donald Trump’s One Big Beautiful Bill Act repealed last year, sometime after the midterm elections.
“It was a really crazy political decision by the Republicans to kill 25D,” Berger said. “These are the people, the homeowners, that pay the taxes that then fund the tax credits for the utilities, the monopolies, and all the big companies in an affordability crisis.” He also called axing the credit “political suicide.”
Either way, he said, building new solar panels in the U.S. is getting more expensive, making it all the more important to maintain existing units. He’s optimistic about future growth.
“We continue to sell memberships every single day in all of our territories,” Berger said. “In fact, we’re gearing up to ramp that up with a significant sales effort across the board in both Europe and the U.S.”
Otovo is planning to go public in a dual listing on a U.S. stock exchange by December.
“We feel pretty good that, over the next several months, we’ll be able to pop out here and have a pretty good listing in the United States,” he said. “If it’s not before the end of the year, it’ll be very shortly after the new year. But as any CEO will tell you, taking a company public, which I’ve done before, involves a good bit of luck.”
Emails raise questions about who knew what and when leading up to the administration’s agreement with TotalEnergies.
The Trump administration justified its nearly $1 billion settlement agreement with TotalEnergies to effectively buy back the French company’s U.S. offshore wind leases by citing national security concerns raised by the Department of Defense. Emails obtained by House Democrats and viewed by Heatmap, however, seem to conflict with that story.
California Representative Jared Huffman introduced the documents into the congressional record on Wednesday during a hearing held by the House Natural Resources Committee’s Subcommittee on Oversight and Investigations.
“The national security justification appears to be totally fabricated, and fabricated after the fact,” Huffman said during the hearing. “DOI committed to paying Total nearly a billion dollars before it had concocted its justification of a national security issue.”
The email exchange Huffman cited took place in mid-November among officials at the Department of the Interior. On November 13, 2025, Christopher Danley, the deputy solicitor for energy and mineral resources, emailed colleagues in the Bureau of Ocean Energy Management and the secretary’s office an attachment with the name “DRAFT_Memorandum_of_Understanding.docx.”
According to Huffman’s office, the file was a document entitled “Draft Memorandum of Understanding Between the Department of the Interior and TotalEnergies Renewables USA, LLC on Offshore Wind Lease OCS-A 0545,” which refers to the company’s Carolina Long Bay lease. (The office said it could not share the document itself due to confidentiality issues.)
While the emails do not discuss the document further, the November date is notable. It suggests that the Interior Department had been negotiating a deal with Total before BOEM officials were briefed on the DOD’s classified national security concerns about offshore wind development.
Two Interior officials, Matthew Giacona, the acting director of BOEM, and Jacob Tyner, the deputy assistant secretary for land and minerals management, have testified in federal court that they reviewed a classified offshore wind assessment produced by the Department of Defense on November 26, 2025, and then were briefed on it again by department officials in early December. They submitted this testimony as part of a separate court case over a stop work order the agency issued to the Coastal Virginia Offshore wind project in December.
“After my review of DOW’s classified material with a secret designation,” Giacona wrote, “I determined that CVOW Project’s activities did not adequately provide for the protection of national security interests,” leading to his decision to suspend ongoing activities on the lease.
Giacona and Tyner are copied on the emails Huffman presented on Wednesday, indicating that the memorandum of understanding between Total and the Interior Department had been drafted and distributed prior to their reviewing the classified assessment.
The final agreement both parties signed on March 23, however, justifies the decision by citing a series of events that it portrays as taking place after officials learned of the DOD’s national security concerns.
The Interior Department paid Total out of the Judgment Fund, a permanently appropriated fund overseen by the Treasury Department with no congressional oversight that’s set aside to settle litigation or impending litigation. The final agreement describes the background for the settlement, beginning by stating that the Interior Department was going to suspend Total’s leases indefinitely based on the DOD’s classified findings, which “would have” led Total to file a legal claim for breach of contract. Rather than fight it out in court, Interior decided to settle this supposedly impending litigation, paying Total nearly $1 billion, in exchange for the company investing an equivalent amount into U.S. oil and gas projects.
But if the agency had been negotiating a deal with Total prior to being briefed on the national security assessment, it suggests that the deal was not predicated on a threat of litigation. During the hearing, Eddie Ahn, an attorney and the executive director of an environmental group called Brightline Defense, told Huffman that this opens the possibility for a legal challenge to the deal.
I should note one hiccup in this line of reasoning. Even though Interior officials testified that they were briefed on the Department of Defense’s assessment on November 26, this is not the first time the agency raised national security concerns about offshore wind. When BOEM issued a stop work order on Revolution Wind in August of last year, it said it was seeking to “address concerns related to the protection of national security interests of the United States.”
During the hearing, Huffman called out additional concerns his office had about the settlement. He said the amount the Interior Department paid Total — a full reimbursement of the company’s original lease payment — has no basis in the law. “Federal law sets a specific formula for the compensation a company can get when the government cancels an offshore lease,” he said, adding that the settlement was for “far more.” He also challenged a clause in the agreement that purports to protect both parties from legal liability.
Huffman and several of his fellow Democrats also highlighted the Trump administration’s latest use of the Judgment Fund — to create a new $1.8 billion legal fund to issue “monetary relief” to citizens who claim they were unfairly targeted by the Biden administration, such as those charged in connection with the January 6 riot.
“Now we know that that was just the beginning,” Maxine Dexter of Oregon said. “This president’s fraudulent use of the judgment fund is the most consequential and damning abuse of taxpayer funds happening right now.”
The effort brings together leaders of four Mountain West states with nonprofit policy expertise to help speed financing and permitting for development.
Geothermal is so hot right now. And bipartisan.
Long regarded as the one form of electricity generation everyone in Washington can agree on (it’s both carbon-free and borrows techniques, equipment, and personnel from the oil and gas industry), the technology got yet another shot in the arm last week when leading next-generation geothermal company Fervo raised almost $2 billion by selling shares in an initial public offering.
Now, a coalition of western states and nonprofits is coming together to work on the policy and economics of fostering more successful geothermal projects.
Governor Jared Polis of Colorado and Governor Spencer Cox of Utah will announce the formation of the Mountain West Geothermal Consortium this afternoon at a press conference in Salt Lake City.
The consortium brings together governors, regulators, and energy policy staffers from those two states and their Mountain West neighbors Arizona and New Mexico, along with staffing and organizational help from two nonprofits, the Center for Public Enterprise and Constructive, both of which employ former Department of Energy staffers.
The consortium will help coordinate permitting, financing, and offtake agreements for geothermal projects. This could include assistance with permitting on state-level issues like water usage, attracting public dollars to geothermal projects, and upgrading geophysical data to guide geothermal development.
Michael O’Connor, a former DOE staffer who worked on the department’s geothermal programs, is the director of the consortium. He told me that the organization has done financial and geotechnical modeling to entice funding for earlier stage geothermal development that traditional project finance investors have seen as too high-risk.
“We think that the public sector should be a part of the capital stack, and so what we’re trying to do is build investment programs that leverage the state’s ability to provide the early concessionary capital and match that with private sector capital,” O’Connor said. “The consortium has done a whole bunch of financial modeling around this, and we’re now working with energy offices to build that into actual programs where they can start funding.”
The consortium is also trying to make it easier for utilities to agree to purchase power from new geothermal developments, O’Connor said. This includes helping utilities model the performance of geothermal resources over time so that they can be included more easily in utilities’ integrated resource plans.
“Most Western utilities either have no data to incorporate geothermal into their IRPs, or the data they’re using is generalized and 15 years old,” O’Connor told me. This type of data is easy to find for, say, natural gas or solar, but has not existed until recently for geothermal.
“Offtakers want the same kind of assurance that infrastructure investors want,” O’Connor said. “Everyone wants a guaranteed asset, and it takes a little bit more time and effort.”
The third area the consortium is working on is permitting. Many geothermal projects are located on land managed by the Bureau of Land Management, and therefore have to go through a federal permitting process. There are also state-specific permitting issues, most notably around water, a perennially contentious and complicated issue in the West.
How water is regulated for drilling projects varies state by state, creating an obstacle course that can be difficult for individual firms to navigate as they expand across the thermally rich intermountain west. “You’re always working with this sort of cross-jurisdictional permitting landscape,” Fervo policy chief Ben Serrurier told me. “Anytime you’re going to introduce a new technology to that picture, it raises questions about how well it fits and what needs to be updated and changed.”
Fervo — which sited its flagship commercial geothermal plant in Cape Station, Utah — has plenty of experience with these issues, and has signed on as an advisor to the consortium. “How do we work with states across the West who are all very eager to have geothermal development but, aren’t really sure about how to go about supporting and embracing, encouraging this new resource?” Serrurier asked. “This is policymakers and regulators in the West, at the state level, working together towards a much broader industry transformation.”
The Center for Public Enterprise, a consortium member think tank that works on public sector capacity-building, released a paper in April sketching out the idea for the group and arguing that coordinated state policy could bring forward projects that have already demonstrated technological feasibility. The paper called for states to “create new tools to support catalytic public investment in and financing for next-generation geothermal.”
Like many geothermal policy efforts, the geothermal consortium is a bipartisan affair that builds on a record of western politicians collaborating across party lines to advance geothermal development.
“There is sort of this idea that the West is an area that we collectively are still building, and there is still this idea of collaboration against challenging elements and solving unique problems,” Serrurier said.
Cox, a Republican, told Heatmap in a statement: “Utah is working to double power production over the next decade and build the energy capacity our state will need for generations. Geothermal energy is a crucial part of that future, and Utah is proud to be a founding member of the Mountain West Geothermal Consortium.”
Polis, a Democrat, said, “Colorado is a national leader in renewable energy, and geothermal can provide always-on, clean, domestic energy to power our future. Colorado is proud to partner on a bipartisan basis with states across the region to found the Mountain West Geothermal Consortium.”
O’Connor concurred with Fervo’s Serrurier. “Western states are better at working together on ’purple issues’ than most states,” he told me.
In this moment, O’Connor said, the issue at hand is largely one of coordinating and harmonizing across states, utilities, and developers. “Several pieces of good timing have fallen upon the industry at this moment, which has led to a positive news cycle,” he told me. “Making sure that gets to scale now means we have to solve thorny or bigger dollar problems — and that’s why we’re here.
“We’re not an R&D organization,” he added, referring to the consortium. “We’re here to get over the hurdles of financing and of offtake and of regulatory reform.”