California Construction News staff writer
California’s regional hydrogen hub, the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES), will lose up to $1.2 billion in federal funding after the Trump administration announced major cuts to Department of Energy programs yesterday. The Pacific Northwest Hydrogen Association (PNWH2), a multi-state hub covering Washington, Oregon, Idaho, and Montana, also saw its $1 billion allocation pulled.
Both hubs were part of a network of seven regional hydrogen initiatives selected by DOE two years ago to help jump-start the emerging hydrogen fuel sector. The projects were intended to provide cleaner energy for industries that rely heavily on fossil fuels, including steel and cement manufacturing, as well as long-distance transportation like shipping and heavy-duty trucking.
Hydrogen produced through electrolysis powered by renewable energy—commonly known as “green hydrogen”—emits mostly water when burned, making it a cleaner alternative to traditional hydrogen derived from methane.
Gov. Gavin Newsom criticized the cuts, calling them “economics and common sense be damned.” He said the state remains committed to clean energy and job creation. “Clean hydrogen deserves to be part of California’s energy future — creating hundreds of thousands of new jobs and saving billions in health costs,” Newsom said. “We’ll continue to pursue an all-of-the-above clean energy strategy that powers our future and cleans the air, no matter what DC tries to dictate.”
Sen. Maria Cantwell, D-Wash., called the Pacific Northwest hub cancellation “unprecedented and corrupt,” warning it could wipe out more than 10,000 jobs, mostly in rural communities.
DOE defended the funding cuts, saying the projects “did not adequately advance the nation’s energy needs, were not economically viable, and would not provide a positive return on investment of taxpayer dollars.” Recipients have 30 days to appeal the decision.
Russ Vought, director of the Office of Management and Budget, described the move as part of a broader reduction in federal climate spending, referring to nearly $8 billion in funding as “Green New Scam” money aimed at the political Left’s climate agenda.
