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The Trump administration canceled a $20 million EPA grant for a wind project in Kotzebue, Alaska, and other cuts have left tribal clean-energy and infrastructure plans without expected federal funding. Brookings researchers say DOGE removed $468 million from Indian Country and recommend legislation to protect tribal grants.
The Trump administration canceled a $20 million Environmental Protection Agency grant for a wind project in Kotzebue, Alaska, leaving the project paused and the community reliant on diesel for most of its electricity. The cancellation is part of wider federal funding cuts that, according to Brookings Institution reports cited by Canary Media, removed hundreds of millions of dollars intended for tribal communities and stalled energy, infrastructure and climate-resilience work.
The proposed wind project was expected to reduce Kotzebue’s reliance on diesel from about 75% of its power to roughly 40% to 50%, according to Chad Nordlum, energy project manager for the Native Village of Kotzebue. The EPA grant was announced in 2024 as part of a larger $150 million allocation for tribal infrastructure in Alaska. Nordlum said the project would also give the community more control over energy and economic decisions. After the grant was canceled in May 2025, the project was put on hold.
Kotzebue is a small city in northwest Alaska, accessible only by air and sea. Ice limits the period when freight barges can reach the community, so fuel must be delivered during a short annual window. The report says residents spend about 20% of their income on energy, more than three times the average energy burden for low-income households nationwide. Nordlum told Grist that reliance on diesel leaves the community exposed to global fuel prices.
The report also cites Brookings research on broader cuts to tribal funding. It says the Department of Government Efficiency eliminated $468 million in funding for Indian Country, with about half allocated for environmental and natural-resources work and another 11% for agriculture. The affected projects include renewable energy, climate planning, infrastructure and jobs programs. These figures describe the funding identified in the Brookings analysis; the source does not provide a project-by-project accounting of all cancellations.
Tribal Energy Plans Lose Federal Support
The cuts affect projects intended to address high energy costs, unreliable infrastructure and climate risks in tribal communities. In Kotzebue, the canceled grant would have supported locally generated wind power, potentially reducing exposure to diesel prices that the community cannot control. With the project paused, the proposed reduction in diesel use has not been delivered.
Brookings researchers say the effects extend beyond individual energy projects. The report describes longstanding federal underinvestment in Indigenous communities and argues that funding interruptions can impede tribal efforts to strengthen infrastructure and prepare for climate impacts. In Alaska and elsewhere, the source notes, communities face increasingly frequent and destructive storms, wildfires and other disasters. Those broader effects are the researchers’ assessment; the immediate confirmed consequence in Kotzebue is that the funded wind project remains on hold.
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From Pandemic-Era Grants to Cuts
The funding canceled or reduced followed a period of increased federal investment in tribal climate, energy and infrastructure work under the Biden administration. The source says more than $700 million was directed to such projects after the pandemic, including climate action planning and food-systems analysis. Brookings researchers characterize that funding level as an unusual increase against a longer history of underinvestment.
One other example is a planned $25 million solar grant to the Hopi Tribe for panels serving 600 homes. The source says that grant, along with the broader $7 billion Solar for All program, was cut. The article also reports that the One Big Beautiful Bill Act ended many funding streams established by the 2022 Inflation Reduction Act. These examples show the breadth of the reported reversals, though the source does not detail the current status of every affected project.
“This underinvestment is kind of the default for the U.S. rather than a blip.”
— Rob Maxim, Mashpee Wampanoag and a fellow at Brookings Metro
Scope of Cancellations Remains Unclear
The source does not establish how many tribal projects have been canceled, how much funding each has lost, or whether any of the affected grants may be restored. It also does not give a timeline for restarting Kotzebue’s wind project or identify replacement funding. Canary Media reported that the White House and EPA did not respond to its requests for comment, so the administration’s explanation for the specific cancellation is not included.
The source reports that the project is still paused more than a year after the grant was canceled. It does not say whether construction had begun, what costs would be needed to resume work, or whether the project can proceed at a smaller scale without the grant.
Researchers Seek Grant Protections
Brookings researchers Haskins and Maxim are calling on Congress to pass legislation that would bar cancellations of grants and contracts for tribes and recognize funding for Indigenous nations as serving federal trust and treaty obligations, including when the money comes through programs with other stated purposes. They also recommend requiring funds to flow directly to tribes rather than making them seek reimbursement from the U.S. Treasury.
No legislation or decision to restore the Kotzebue grant is identified in the source. The next developments to watch are whether Congress considers the proposed protections, whether federal agencies provide further explanations of the cuts, and whether Kotzebue or other affected communities secure funding to restart planned work.
Key Questions
What happened to the Kotzebue wind project?
The Trump administration canceled a $20 million EPA grant for the project in May 2025. The project remains paused, according to the report.
How was the wind project expected to affect Kotzebue?
Energy project manager Chad Nordlum said it was expected to reduce the community’s diesel use from about 75% of its power to 40% to 50%. That change has not occurred because the project is paused.
How much tribal funding did DOGE reportedly cut?
Brookings research cited in the report says DOGE eliminated $468 million in funding for Indian Country. About half was allocated for environmental and natural-resources work, while 11% targeted agriculture.
What protections are Brookings researchers proposing?
They recommend legislation to prevent cancellations of tribal grants and contracts, recognize the connection to federal trust and treaty obligations, and direct funds to tribes rather than requiring reimbursement from the Treasury.
Source: canarymedia.com
