Padilla, Schiff Slam Unlawful Elimination of Federal Funding for ARCHES Hydrogen Hub as Part of Vindictive $7.5 Billion DOE Funding Cuts

WASHINGTON, D.C. - U.S. Senators Alex Padilla and Adam Schiff (both D-Calif.) blasted the Department of Energy's (DOE) cancellation of all $1.2 billion Padilla secured in the Bipartisan Infrastructure Law for California's Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) hydrogen hub.

The elimination of all ARCHES federal funding comes as part of the Trump Administration's cuts of over $7.5 billion in clean energy and climate project funding exclusively across states that President Trump did not win in the 2024 election. Budget Director Russell Vought announced the unlawful, blatantly partisan cuts on Wednesday, breaking existing bipartisan agreements and threatening to further raise energy costs.

"The cancellation of ARCHES is vindictive, shortsighted, and proof that this Administration is not serious about American energy dominance," wrote the Senators. "We strongly urge you to immediately restore the funding awarded to the Alliance for Renewable Clean Hydrogen Energy Systems Hub in California."

"The cancellation of this award threatens the future promise of hydrogen energy, leaving us behind the rest of the world," continued the Senators. "The ARCHES hub is a key strategic investment into American energy dominance, energy technology prominence, manufacturing job growth, and lowering energy costs for American families."

ARCHES aims to establish a renewable, clean hydrogen market and ecosystem in California by 2030, creating over 200,000 jobs in the state and saving nearly $3 billion in health costs annually, while reducing harmful emissions that disproportionately impact underserved communities and accelerate the climate crisis. California published a roadmap to carbon neutrality by 2045, which included a projected 1,700-fold increase in the use of hydrogen across multiple industrial sectors.

These cuts targeting Democratic-leaning states like California were telegraphed earlier this year by reports of a DOE "hit list" of awards, contracts, and projects - many of which have already begun construction - it was considering canceling. The list included ARCHES and other California projects for which the Trump Administration is intending to withhold funding.

"The ARCHES hub is a critical and strategic investment in our energy future. It provides a clear path toward energy independence, innovation, competitiveness, and affordability. The illegal withdrawal of support for this vital project is a significant step back from American energy dominance, and we request that you restore full support for ARCHES," concluded the Senators.

Senator Padilla has been a strong supporter of the development of clean hydrogen power in California. Padilla secured up to $1.2 billion for the ARCHES hydrogen hub from the Bipartisan Infrastructure Law and successfully pushed former Energy Secretary Jennifer Granholm to support ARCHES' proposal as part of its Regional Clean Hydrogen Hubs program. Earlier this year, Padilla, Schiff, and Representatives George Whitesides (D-Calif.-27) and Mike Levin (D-Calif.-49) led a bipartisan, bicameral delegation of 45 lawmakers in urging DOE to preserve funding for hydrogen production hubs, including ARCHES. Padilla, Schiff, and 25 other Democratic Senators also sounded the alarm on DOE's "hit list" of key energy projects, demanding Secretary of Energy Chris Wright follow the law and preserve the hydrogen hub program. Additionally, Padilla questioned President Trump's nominee for Deputy Secretary of Energy on the hit list, highlighting the importance of the Regional Clean Hydrogen Hubs program to "jumpstart" the national hydrogen economy and urging him to protect vital funding for ARCHES.

Full text of the letter is available here and below:

Dear Secretary Wright,

We write in strong opposition to the U.S. Department of Energy's cancellation of California's Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES), in addition to the cancellation of over $7.5 billion in other DOE grants. The cancellation of ARCHES is vindictive, shortsighted, and proof that this Administration is not serious about American energy dominance. We strongly urge you to immediately restore the funding awarded to the Alliance for Renewable Clean Hydrogen Energy Systems Hub in California.

In July 2024, the Office of Clean Energy Demonstrations (OCED) awarded $30 million to the California Hydrogen Hub through the Alliance for Renewable Clean Hydrogen Energy Systems to initiate hydrogen hub projects, following its selection as one of seven regional hubs in October 2023. These projects - and the economic growth and American jobs they support - are dispersed across the State of California, in both Democratic and Republican areas. From the Ports of Los Angeles, Long Beach, and Oakland to areas of the Central Valley and the reservation of the Rincon Band of Luiseño Indians, to Lancaster, California, the investment is already being used to bring together private industry, local governments, and community organizations to collaborate and build a secure, American-made energy future.

This project was projected to create 220,000 good-paying jobs, from research and development (R&D) to manufacturing and maintenance of renewable hydrogen systems. This, in turn, promotes public-private partnerships to expand our energy and STEP workforce. The cancellation of this award threatens the future promise of hydrogen energy, leaving us behind the rest of the world. The ARCHES hub is a key strategic investment into American energy dominance, energy technology prominence, manufacturing job growth, and lowering energy costs for American families.

The ARCHES hub is a critical and strategic investment in our energy future. It provides a clear path toward energy independence, innovation, competitiveness, and affordability. The illegal withdrawal of support for this vital project is a significant step back from American energy dominance, and we request that you restore full support for ARCHES. Thank you, and we look forward to your response.

Sincerely,

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