The Grain Belt Express Transmission Project: Will It Get Built? Maybe: Eminent Domain Cited as an Issue in Defunding Loan Guarantee

     The Trump administration has been exemplary in deeming wind energy to be unnecessary. Along with cancelling offshore wind projects, it has also defunded a $4.9 billion loan guarantee for a major transmission project, Invenergy’s $11 billion Grain Belt Express. While the canceled loan guarantee won’t effectively cancel the project, it will make it necessary to get alternative financing for that portion, which will be subject to higher interest rates. The project is slated to install about 800 miles of new transmission.

     There are several parts to this story. 1) needed transmission to move wind power from windy Kansas to more populated regions to the east to Indiana and beyond, connecting four power regions, 2) significant opposition to the project from farmers, ranchers, and other landowners affected, with eminent domain expected to be employed, 3) an administration that does not seek to advance clean energy, seemingly in any way, 4) higher energy demand in the regions that would be serviced by the transmission line.

     It is unclear if the project will ultimately get built, but there is little doubt that it will be slowed down. Missouri Senator Josh Hawley advocated for the DOE to defund the loan guarantee, citing public opposition and eminent domain issues.

“Even if we do all the planned power plants, and all the planned wind and solar farms, we still won’t have enough electricity to meet all the planned AI data centers,” said Otto Lynch, CEO of Power Line Systems, a software company that designs transmission infrastructure. “We need 35 gigawatts of electricity by 2030 just to meet the demand from data centers. And that's just the ones that are planned. The Grain Belt line is still needed—we’ve got to get that energy.”

     Financial analysis and modeling suggest that the project would save ratepayers $52 billion over 15 years. The Missouri Public Service Commission found that Missouri alone would save $17 billion in lower electric bills—savings that would flow directly to homeowners and businesses. Jobs, both temporary construction jobs and permanent jobs, will be created by the project. It would also provide a connected energy market across four power regions, which should make the overall grid more flexible in meeting demand.

     Energy Sage reports on the project:

“The loan guarantee program has a strong track record. In its 20-year history, the Department of Energy's Loan Programs Office has actually turned a profit for taxpayers by collecting interest and principal payments from borrowers. This wasn't a government giveaway—it was a financial tool designed to help critical infrastructure projects access capital markets at reasonable rates.”

“By late 2024, the Grain Belt Express had overcome every major hurdle. State approvals from Kansas, Missouri, Illinois, and Indiana were secured after years of regulatory review. The Biden administration had approved the conditional loan guarantee following extensive due diligence.

Invenergy had awarded $1.7 billion in contracts to U.S. contractors to begin construction, with the line set to start operation in 2026.”

“Then politics intervened.”

“Missouri Senator Josh Hawley successfully lobbied President Trump and Energy Secretary Chris Wright to cancel the loan guarantee, calling it a "boondoggle loan" and a "green scam." The July 23 cancellation notice cited that "the conditions necessary to issue the guarantee are unlikely to be met and it is not critical for the federal government to have a role in supporting this project."

“In response, Invenergy called the cancellation "bizarre," noting that "Senator Hawley is trying to deprive Americans of billions of dollars in energy cost savings, thousands of jobs, and grid reliability and national security."

     Basically, it is a political defunding and a part of the Trump administration’s overt war on wind power. While many see this project as a critical infrastructure project, others see it as a “green scam” simply because it involves wind energy. Invenergy says they think the project will still be built with private financing, but they do lament the lack of government support for this critical infrastructure project.

      

 

References:

 

Trump administration cancels pending loan for massive power line project: The decision lands after Missouri GOP Sen. Josh Hawley said the administration would kill the financing at his urging. Kelsey Tamborrino and James Bikales. Politico. July 23, 2025. Trump administration cancels pending loan for massive power line project - POLITICO

Federal officials cancel $4.9 billion grid upgrade set to employ thousands: 'The project promised substantial economic benefits'. Costs will be passed on to consumers. Kristen Lawrence. The Cool Down. September 3, 2025. Federal officials cancel $4.9 billion grid upgrade set to employ thousands: 'The project promised substantial economic benefits'

Grain Belt Express: An Invenergy Project. Home - Grain Belt Express

America's power crunch gets worse as $5 billion transmission project loses federal backing

The Grain Belt Express could bring $52 billion in energy savings over the next 15 years. Justin R. Wolf. Edited by: Alix Langone. Energy Sage. Updated Aug 13, 2025. America's Power Crunch Gets Worse As $5 Billion Transmission Project Loses Federal Backing | EnergySage