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On the uncertain future of government grants and loans, a new Treasury secretary, and deadly heat
Current conditions: A major incident was declared in parts of England after Storm Herminia brought severe flooding • A 3.8-magnituted earthquake was recorded off the coast of Maine • It’s warmer than average across central and eastern states, but colder than average in the Southwest.
The Trump administration’s Office of Management and Budget issued a two-page memo temporarily suspending all federal grants and loans. “The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve,” wrote the OMB’s acting director Matthew J. Vaeth. The pause will allow agencies to review grant and loan programs and make sure they align with President Trump’s many executive orders, which have sought to sharply curtail climate initiatives and clean energy spending, among other programs. Some experts say the order is too vague to be legal. Still, it triggered panic and confusion across many state and local governments and programs. “It will mean missed payrolls and rent payments and everything in between,” said Senate Minority Leader Chuck Schumer. “Chaos for everything from universities to non-profit charities, state disaster assistance, local law enforcement, aid to the elderly, and food for those in need.” The pause goes into effect at 5 p.m. today.
The Senate yesterday confirmed hedge fund manager Scott Bessent as Treasury secretary. As Heatmap’s Matthew Zeitlin has explained, Bessent has long advised Trump on the economy and has a “3-3-3” plan for the economy that involves cutting deficits in half to 3% of gross domestic product, ratcheting up GDP to 3%, and boosting oil production by three million barrels a day, a goal that Continental Resources chief executive and informal Trump advisor Harold Hamm has cast doubt on due to geologic constraints. Bessent has also suggested to the Financial Times that the Inflation Reduction Act could be one area where cuts to the federal budget could be found, telling the paper that it was “the Doomsday machine for the deficit.” He is reportedly aiming to introduce new universal tariffs on imports, starting at 2.5% and gradually rising to as high as 20%.
President Trump’s policy agenda cannot stop the global energy transition, analysts from Citigroup wrote in a note, according toBloomberg. “Clean energy is cheaper, more widely available, and more efficient,” the note said. “For advocates of clean energy transition, the power of economics will prevail.” The analysts weren’t particularly concerned about the U.S. exodus from the Net-Zero Banking Alliance (which Citigroup itself has left), saying this “neither impedes progress nor dilutes efforts” to decarbonize investing.
Climate change-related deaths in European cities could rise by 50% by 2099 if little is done in the way of mitigation and adaptation, according to a new study published in the journal Nature Medicine. In this scenario, some 2.3 million people in urban areas across the continent are projected to die climate-related deaths by the end of the century. “With no adaptation to heat, the increase in heat-related deaths consistently exceeds any decrease in cold-related deaths,” the authors wrote. The number of deaths could be reduced by at least two-thirds if warming peaks at 1.5 degrees Celsius above pre-industrial levels, or at least remains below 3 degrees Celsius. The world has already warmed by 1.3 degrees Celsius. According to the Climate Action Tracker, current policies have us on a path toward roughly 2.7 degrees of warming by 2100. A separate study out today found that ocean-surface temperatures are warming more than four times faster now than they did in the late 1980s.
Projected increases (purple) and decreases (green) in excess deaths due to temperature in a warming Europe.Nature
As Los Angeles starts down the long path to recovery after its devastating wildfires, a debate is growing over what to do with all the debris leftover from the blazes. Some people are considering hiring private firms to clean up their properties, but that could cost some $170,000, the Los Angeles Timesreported. The U.S. Army Corps of Engineers is offering to clear away the debris for free, and the Environmental Protection Agency is also working on the cleanup, but officials warned locals at a town hall meeting Sunday that the process could take up to 18 months. That timeline was met with outrage. The EPA plans to send the debris to some L.A. County’s foothill communities to be processed for disposal, but residents there aren’t happy about the idea of being dumped with toxic wildfire waste. “The potential risks associated with hazardous materials, particularly lithium electric vehicle batteries, which are highly flammable and pose environmental contamination risks, are a matter of significant concern,” said L.A. County Supervisor Hilda Solis in a statement. “The removal of these materials should not come at the cost of creating a toxic environment for communities already disproportionately impacted by pollution.”
“Blithely insisting that incredibly complex problems will be solved easily and quickly is a specialty of tech barons. And if AI itself finds the solution to our energy problems? Even better.”
–Paul Waldman writing for Heatmap on solving climate change (or not) with AI
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On once-in-a-lifetime bad weather, Trump tariffs, and Tesla’s shares
Current conditions: A heat wave triggered power cuts in Kuwait as electricity demand exceeded capacity • Australia just rounded out its 12 hottest months ever recorded • Temperatures in New York City are forecast to reach 73 degrees Fahrenheit today, nearly 30 degrees higher than yesterday.
Powerful thunderstorms are tearing across the Midwest and Mississippi Valley in what the National Weather Service has warned will be a “multi-day catastrophic and potentially historic” event. Destructive and deadly tornadoes were reported overnight in multiple states including Missouri, Arkansas, Kentucky, and Indiana. The system also brought a threat of once-in-a-lifetime flooding caused by heavy rainfall. More than 1.4 million people were under flash flood warnings. “This isn’t routine,” the National Weather Service in Memphis, Tennessee, warned. “This is a rare, high-impact, and potentially devastating event.” The storm is expected to stall over the region and continue to dump heavy rain – up to 12 inches in some areas – through the rest of the week.
NOAA
As Heatmap’s Jeva Lange has reported, the Intergovernmental Panel on Climate Change is highly confident in the attributable influence of climate change on extreme rain, and “everything we know about thunderstorms suggests that a warmer, wetter atmosphere will mean severe convection storms become both more frequent and more intense.” These historic spring storms are hitting as the Trump administration slashes jobs at the National Oceanic and Atmospheric Administration and the Federal Emergency Management Agency, hampering the government’s ability to effectively forecast and respond to weather emergencies.
President Trump on Wednesday announced sweeping 10% baseline tariffs on imported goods, as well as higher “reciprocal” tariffs against about 60 countries that impose charges and other trade barriers on U.S. products. China will be hit with a 34% reciprocal fee, on top of Trump’s existing 20% tariffs on Chinese goods, bringing the overall rate to 54%. The European Union will be hit with 20% reciprocal tariffs; India 26%; South Korea 25%; Japan 24%, and Vietnam 46%. The full list is here.
The newly announced levies exclude imported energy commodities such as crude oil, natural gas, and refined products. “The exemption will come as a relief to the U.S. oil industry, which had expressed concerns that new levies could disrupt flows and raise costs,” Reutersnoted. Meanwhile, high reciprocal tariffs on goods from southeast Asia mean higher prices for solar panels, “another potential dent to the clean energy buildout by a president keen to boost fossil fuels,” according toBloomberg. Trump’s 25% tariffs on auto imports also come into effect today, a move expected to hike car prices for American consumers.
Tesla’s shares have been on a rollercoaster ride over the last 24 hours, falling by about 6% on weak quarterly EV sales, then rebounding on a report that CEO Elon Musk plans to step away from his role within the Trump administration. The electric vehicle company delivered 336,681 cars in the first quarter of 2025, far below analyst expectations of 390,000. The results are the company’s weakest since 2022, a further sign of curdling consumer sentiment as Musk spearheads unpopular mass firings across multiple federal agencies as head of the Department of Government Efficiency. On Wednesday, Politicoreported that President Trump has been telling his Cabinet that Musk will soon “return to his businesses and take on a supporting role” within the administration. The White House denied the report, but the rumor seemed to buoy Tesla’s stock market position, with pre-market shares up about 5% on Thursday.
A group of 16 Republican state legislators on Wednesday sent a letter to Energy Secretary Chris Wright asking him not to pull the plug on funding for seven nascent hydrogen hubs dotted across the country. The Department of Energy is reportedly thinking about cutting $4 billion in funding for the hubs, which were approved under the Biden administration in an effort to turn hydrogen into a viable fossil fuel alternative. The GOP lawmakers urge Wright to preserve funding for the Pacific Northwest Hydrogen Hub in particular, pitching it as a boost to manufacturing, energy independence, and domestic economic growth. Senate Democrats sent their own letter to Wright on Wednesday slamming the contemplated hydrogen hub defunding. “Indiscriminately canceling program funding and executed contracts, and refusing to execute on the funding directives Congress enacted, neither honors existing agreements nor is consistent with the spending laws that have appropriated funding for specific purposes,” the Democrats wrote.
Global coal-fired power capacity additions in 2024 were at their lowest level in 20 years, according to a new report from the Global Energy Monitor. The drop signals an ongoing slowdown in coal use as renewables come online, but the fleet is still growing, especially in China and India. China’s 30.5 gigawatts of newly commissioned coal power capacity last year accounted for 70% of the global total. Meanwhile, India recorded more new coal proposals than ever before. Coal is one of the dirtiest fossil fuels, accounting for 40% to 45% of global energy-related carbon dioxide emissions.
Global Energy Monitor
Montana’s Colstrip power plant, which produces more fine particulate emissions than any other coal-burning plant in the United States, has asked President Trump for an exemption from the Environmental Protection Agency’s air pollution standards.
While you were watching Florida and Wisconsin, voters in Naperville, Illinois were showing up to fight coal.
It’s probably fair to say that not that many people paid close attention to last night’s city council election in Naperville, Illinois. A far western suburb of Chicago, the city is known for its good schools, small-town charm, and lovely brick-paved path along the DuPage River. Its residents tend to vote for Democrats. It’s not what you would consider a national bellwether.
Instead, much of the nation’s attention on Tuesday night focused on the outcomes of races in Wisconsin and Florida — considered the first electoral tests of President Donald Trump and Elon Musk’s popularity. Outside of the 80,000 or so voters who cast ballots in Naperville, there weren’t likely many outsiders watching the suburb’s returns.
But for clean energy and environmental advocates, the Naperville city council results represent an encouraging, if overlooked, victory. On Tuesday, voters in the suburb elected four candidates — incumbents Benjamin White and Ian Holzhauer, and newcomers Mary Gibson and Ashfaq Syed — all of whom oppose the city signing a new contract with the Prairie State Generating Station, the state’s largest and youngest coal-fired plant and the seventh-dirtiest electricity provider in the country.
Naperville is one of 30 municipal investors in the Prairie State plant whose contract with the Illinois Municipal Electric Agency, a public power agency and one of the nine partial owners of Prairie State, has it locked into coal through 2035. Recently, IMEA approached the municipal investors with the promise of favorable terms on a new contract if the cities and towns were willing to re-sign a decade early — by April 30 — and commit to another 20 years of coal power. Most municipalities took the deal, which will run through 2055; Naperville, along with the towns of St. Charles and Winnetka, are still debating the decision, with the deadline looming.
“IMEA’s proposition for communities is, ‘Hey, instead of paying Wall Street and shareholder dividends, we don’t have any of that because we’re a nonprofit, so you get lower energy costs,’” Fernando Arriola, the community relations chair for Naperville Environment and Sustainability Task Force, which opposes the deal with IMEA, told me. “But the way I look at it is, it’s a deal with the devil because you’re locked in for 30 years. And it’s like Hotel California — you can check in anytime you like, but you can never leave.”
In a statement to Heatmap, Staci Wilson, the vice president of government affairs and member services at IMEA, told me that the contract it offered to Naperville is “designed to help … secure more future green resources to serve our member communities for the long term. IMEA is the only power supplier to allow the city to have a direct voice in procuring their wholesale power supply and make reliable, economical, and sustainable resource decisions for the future.”
While it’s true that IMEA allows its municipal members a voice in its future planning, those in Naperville who oppose the new contract point out that the community has just one vote in the process despite making up 35% of the utility’s market.
The pending contract decision became one of the major themes of the city council race in Naperville — attention that caused some locals to grumble about the injection of partisan politics and outside interest in the campaigns. But Syed, a newly elected city council member and a recent immigrant from Dubai, told me that learning that his city relied on coal for 80% of its energy needs was what ultimately galvanized him into running. “Naperville has been a leader in many things, but in this area, we were not doing good,” he said. “So I stepped up.”
Illinois has one of the nation’s most aggressive decarbonization timelines, requiring coal and gas plants to close by 2030. But there is a carve-out for plants owned by public entities like municipal utilities or rural electric cooperatives, and Prairie State fits that bill. Instead, the power plant has to reduce emissions by 45% by 2038, a goal IMEA says it can reach by installing multi-billion dollar carbon capture and storage technologies. Energy experts have been widely skeptical of the proposal. “The people I’ve talked to say that’s unproven and it doesn’t necessarily work, and it’s a high price,” Arriola said.
Still, cost concerns related to transitioning away from coal had “definitely been a conversation in town” leading up to Tuesday’s election, Arriola told me. “A lot of people are seriously concerned about pricing, and there are also concerns about the reliability.” Syed told me that was one of the objections he heard the most when talking to constituents during his campaign. “Some of the Republicans who were against [exporing alternative energy options] were trying to influence people, saying we need to think about the cost,” he said. “My standard answer to these people was that I am not going to compromise clean energy just for the cost purpose.”
Perhaps most interestingly, unlike many communities that oppose power plants, Naperville is located almost 300 miles north of the Prairie State Generating Station and is unaffected by its immediate pollution. Naperville voters who opposed renewing the contract did so on the merits of finding cleaner energy sources and on the objection to dirty electricity that is otherwise out of sight and out of mind. As Amanda Pankau, the director of energy and community resiliency at the Prairie Rivers Network, an environmental nonprofit in the state, told me, “From a climate perspective, we should all care about the Prairie State coal plant.” She noted that the emissions from the plant — around 12.4 million tons of carbon dioxide a year — are “impacting every single Illinoisan and every single person that lives on planet Earth.”
Despite those existential stakes, it could be tempting to wave away the results in Naperville as being on trend for a relatively affluent and liberal-leaning town. Compared to the Wisconsin supreme court election, where the Democrat-backed candidate overcame enormous spending margins to trounce her Republican-backed opponent, it does not necessarily indicate the same momentum for the party heading into 2026’s midterms. (Nor does it even have the biggest climate-related election headline of the night: Tesla is suing Wisconsin for a law preventing car manufacturers from owning car dealerships, which the state’s high court will likely decide.)
But at a time of little good news in the climate sphere, the Naperville election is an encouraging and invigorating reminder that there are candidates who believe in cleaner technologies, and that the battles can still — or especially — be won at the local level. “Twenty-five or 30 years ago, the IMEA contract we signed for that time was okay,” Syed said. “But it’s not okay today. We cannot have this $2 billion contract until 2055 because the next generation will ask us this question: ‘What have you people done for us this time?’”
The Department of Energy has put together a list of sites and is requesting proposals from developers, Heatmap has learned.
The Department of Energy is moving ahead with plans to allow companies to build AI data centers and new power plants on federal land — and it has put together a list of more than a dozen sites nationwide that could receive the industrial-scale facilities, according to an internal memo obtained by Heatmap News.
The memo lists sites in Texas, Illinois, New Jersey, Colorado, and other locations. The government could even allow new power plants — including nuclear reactors and carbon-capture operations — to be built on the same sites to generate enough electricity to power the data centers, the memo says.
Trump officials hope to start construction on the new data centers by the end of this year and switch them on by the end of 2027, according to the memo.
The agency will request formal feedback from artificial intelligence companies and developers about how best to proceed with its proposal as soon as Thursday, according to an individual who wasn’t authorized to speak about the matter publicly.
The effort, aimed at maintaining America’s “global AI dominance,” represents one of the few points of agreement between the Trump and Biden administrations. In the final days of his term, President Biden ordered the government to identify federal properties where new data centers could be built.
Scarcely a week later, President Trump issued an executive order lifting all Biden-era limits on AI development — but keeping the mandate to move quickly to maintain America’s alleged edge in the new technology. “It is the policy of the United States to sustain and enhance America’s global AI dominance,” the Trump order said.
The new memo proposes a list of 16 federal sites that could host AI data centers, new power plants, and other “AI infrastructure.” They include several sites where nuclear weapon components are made, including the Pantex site near Amarillo, Texas, and the Kansas City National Security Campus, which is operated by Honeywell International. The other candidate sites are:
Other sites could still be considered, the memo says, and the current list has no particular ranking or order.
The offer may not be enough to convince developers to work with the federal government, one energy expert told me.
“I think it’s important that the government is thinking about how to help the industry, but you also have to think about it from the perspective of the industry a little bit. Why is doing this on a DOE site better than doing this as a project in Texas?” said Peter Freed, a founding partner at the Near Horizon Group and the former director of energy strategy at Meta.
“Historically, the perspective is that anything involving government land just adds complexity,” Freed told me. “I love Idaho National Lab. It’s a national treasure. But if you want a data center there by the end of 2027 — where is the power going to come from?”
Only if the government were able to guarantee fast-track access to certain kinds of equipment — such as transformers or circuit breakers, which are in a severe shortage — would it make sense for most developers to work with them, he said.
The new memo raises the idea that “innovative energy technologies” including “nuclear reactors, enhanced geothermal systems, fuel cells, carbon capture, energy storage systems, and portfolios of on-site technologies” could be considered to power the new data centers.
The memo asks potential developers, “What information would you need to determine the suitability of various energy storage systems (e.g., subsurface thermal energy storage, flow battery, metal anode battery) as a means for supporting data center cooling or other operations?” It also asks what companies would need to know about a site’s suitability for carbon capture and storage operations. It asks, too, what information might be needed about a site’s topography, physical security, and earthquake risk to build a new nuclear power plant.
The memo doesn’t mention wind turbines or new solar farms, although they could fall under some of the terms it sets out. It also asks companies what information they might need about nearby nuclear power plants or the local power grid — and it inquires whether some data center operations could be turned on and off depending on local power availability.
Although the government could allow new data centers to be built, it won’t accept all liability for them. The memo adds that companies might need to “agree to bear all responsibility for costs and liabilities related to construction and operation of the Al data centers as well as other infrastructure upgrades necessary to support those data centers.”
The Trump administration seems intent on moving quickly on the proposal. Once it publishes the request, companies will have 30 days to respond.