U.S. government under Trump's leadership decides to halt a $4.9 billion loan for the construction of the nation's largest power transmission line.

The Grain Belt Express transmission line project, a massive endeavour aimed at transporting wind and solar energy from the Great Plains to states farther east, has faced a setback with the cancellation of a $4.9 billion federal loan guarantee by the Trump administration.

The U.S. Department of Energy (DOE) made the announcement on a Wednesday, citing that the conditions necessary to issue the guarantee were unlikely to be met. It's unclear to what extent this decision will derail or slow down the project's timeline.

The Chicago-based developer, Invenergy, has been working on the Grain Belt Express for over a decade. They claim that once built, the project will be able to support the development of gigawatts of new wind and solar projects. The transmission line has already secured agreements with utilities in Missouri, with a total cost of $11 billion, and is slated to begin construction next year.

Invenergy has accused Senator Josh Hawley, a Missouri Republican, of trying to deprive Americans of billions of dollars in energy cost savings, thousands of jobs, grid reliability, and national security. Sen. Hawley made a personal appeal to President Donald Trump to halt the project.

The DOE also claimed that it was not critical for the federal government to have a role in supporting this project. Energy Secretary Chris Wright is also scrutinizing several other loans made under the Biden administration by the DOE's Loan Programs Office. Wright has pledged to closely review and potentially cancel tens of billions of dollars more in financing from the office.

However, the name of the government official responsible for abolishing the federal credit support for the Grain Belt Express project remains unspecified. Invenergy did not immediately respond to requests for comment on the cancellation of the federal loan guarantee.

According to Invenergy, the Grain Belt Express will deliver $52 billion in energy cost savings over 15 years. Around the country, more projects like the Grain Belt Express are needed to expand the grid fast enough to meet surging demand and to bolster electricity reliability.

The Grain Belt Express transmission line project has already secured agreements with utilities in Missouri as part of its efforts to find buyers for the power it will make available across the regions it will connect. Invenergy signed a nearly $1.7 billion contract with contractors Kiewit Energy Group and Quanta Services in May.

Despite the setback, Invenergy remains optimistic about the project's future. With the growing need for renewable energy sources and the potential benefits the Grain Belt Express offers, it's hoped that the project will continue to move forward.

U.S. government under Trump's leadership decides to halt a $4.9 billion loan for the construction of the nation's largest power transmission line.