Shares of Exxon had their 2nd largest pop since the regional banking crisis of 2023 (second only to last week's record surge) after the Wall Street Journal reported that the Energy Department is eyeing steep cuts that could wipe out nearly $10 billion in clean-energy funding, jeopardizing major projects with Exxon Mobil and Occidental Petroleum.

Or, as the market appears to see it, a cost saving measure for the likes of Exxon, who will no longer have to endeavor to spend on low-margin "green" businesses. 

Internal memos show the cuts would scrap government contracts tied to hydrogen, carbon capture, and energy storage, with thousands of DOE jobs on the chopping block. Part of President Trump’s broader push to slash federal spending, the move is driven by the Department of Government Efficiency (DOGE), led by adviser Elon Musk. The agency has already axed numerous contracts and federal jobs.

The $10 billion figure spans two DOE offices and reflects broader DOGE-driven cancellations under review, according to the Wall Street Journal report.

“No final decisions have been made and multiple plans are still being considered,” a DOE spokeswoman said.

The Energy Department, responsible for everything from nuclear weapons oversight to energy R&D, is weighing steep funding cuts, including pulling support from four hydrogen hubs in Democratic-leaning states, while continuing to fund three in GOP-leaning regions. Over 250 clean-tech projects—spanning EV charging, solar, wind, and more—could be scrapped.

The report says that roughly 9,000 of the department’s 17,500 jobs are deemed essential. More than 1,200 employees have resigned or been sidelined—many tied to diversity efforts. Another round of buyouts is underway.

Federal grants and loans have largely been frozen since February, when Trump halted funding tied to Biden-era laws, including the Inflation Reduction Act—legislation he’s criticized as the “green new scam.”

Only a few projects, such as Michigan’s Palisades nuclear plant, have received funding.

Jigar Shah, former head of the DOE’s Loan Programs Office, warned this risks driving clean-tech investment overseas: “That just makes me so sad... now they’re receiving the opposite message.”