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Politics

The White House’s Shocking Federal Funding Freeze

On the uncertain future of government grants and loans, a new Treasury secretary, and deadly heat

The White House’s Shocking Federal Funding Freeze
Heatmap Illustration/Getty Images

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 TOP FIVE

1. White House orders pause to federal grants and loans

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.

2. Scott Bessent confirmed as Treasury secretary

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%.

3. Citigroup: Energy transition is irreversible

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.

4. Study warns of 2.3 million excess heat-related deaths in European cities by end of century

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

5. Los Angeles grapples with toxic wildfire debris

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.”

THE KICKER

“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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Q&A

You, Too, Can Protect Solar Panels Against Hail

A conversation with VDE Americas CEO Brian Grenko.

This week's interview subject.
Heatmap Illustration

This week’s Q&A is about hail. Last week, we explained how and why hail storm damage in Texas may have helped galvanize opposition to renewable energy there. So I decided to reach out to Brian Grenko, CEO of renewables engineering advisory firm VDE Americas, to talk about how developers can make sure their projects are not only resistant to hail but also prevent that sort of pushback.

The following conversation has been lightly edited for clarity.

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Heatmap Illustration/Getty Images

1. Long Island, New York – We saw the face of the resistance to the war on renewable energy in the Big Apple this week, as protestors rallied in support of offshore wind for a change.

  • Activists came together on Earth Day to protest the Trump administration’s decision to issue a stop work order on Equinor’s Empire Wind project. It’s the most notable rally for offshore wind I’ve seen since September, when wind advocates protested offshore opponents at the Preservation Society of Newport County, Rhode Island.
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Iowa.
Heatmap Illustration/Getty Images, Library of Congress

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Iowa’s known as a renewables growth area, producing more wind energy than any other state and offering ample acreage for utility-scale solar development. This has happened despite the fact that Iowa, like Ohio, is home to many large agricultural facilities – a trait that has often fomented conflict over specific projects. Iowa has defied this logic in part because the state was very early to renewables, enacting a state portfolio standard in 1983, signed into law by a Republican governor.

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