Now the U.S. Department of Energy (DoE) has withdrawn its $4.9 billion loan guarantee. This decision puts the Grain Belt Express, at over 700 miles, the second-longest proposed transmission line in the country. This project brings Illinois into tandem with New Jersey and joins together four separate grid regions, including the Pennsylvania-New Jersey-Maryland Interconnection (PJM). As experts have called it the “national energy security backbone.” The stop to financial assistance was disclosed recently, a serious blow for what had been a bold new energy effort.
Previously, in November 2024, the Biden administration granted a conditional commitment for the Grain Belt Express. American farmers vigorously resisted this commitment. They filed 22 petitions to take land through eminent domain against the private state landowners involved in the project. Their main argument was that compulsory land acquisition would negatively affect existing farmers and local communities.
Legal Challenges and Opposition
It is the withdrawal of this loan guarantee that has sparked a legal firestorm over its legitimacy. Jigar Shah, the current director of the loan program who guided approval of that loan guarantee under the Biden administration, called the cancellation illegal. He stressed that the LPO applicant needs to fulfill all the listed requirements to receive the commitment. If so, the Department of Energy is legally required to issue the loan.
“This decision is illegal. When the LPO applicant meets all of the requirements that are set for the conditional commitment, then the Department of Energy is obligated to close the loan.” – Jigar Shah
Farmers’ opposition complicates this situation further. They contend that the proposed project jeopardizes their land, culture, and livelihoods. This concern unreels a bigger discussion about rural community land use and energy infrastructure needs.
Financial Implications
Just this past May 2025, Quanta Services and Kiewit Energy Group jointly won contracts totaling $1.7 billion for the Grain Belt Express project. This accomplishment underscores their deep financial commitment leading up to the DOE’s landmark decision. The end of taxpayer-funded financial assistance throws the future of these investments, and the large-scale projects themselves, into an uncertain future.
The DoE is implementing an aggressive review of every applicant and borrower. They care about making sure that taxpayer dollars are spent wisely. The department remains committed to supporting the best interests of the American people. Alongside this, it is voting with its dollars to truly broaden access to the clean, reliable energy on which many Americans already depend.
“DoE is conducting a review of every applicant and borrower – including the nearly $100 billion in closed loans and conditional commitments LPO made between Election Day 2024 to Inauguration Day 2025 – to ensure every single taxpayer dollar is being used to advance the best interest of the American people.” – DoE
Future Prospects for Grain Belt Express
Supporters of the Grain Belt Express have difficult battles ahead, but they are committed and optimistic. They feel strongly that this project is needed to increase energy security within the United States. They contend that getting these transmission lines built is crucial for connecting clean, renewable energy sources to the national grid. This fundamental integration will be key to slashing our dependence on fossil fuels.
As conversations go back and forth about the future of the Grain Belt Express, stakeholders sit on standby waiting for news. That result would have far-reaching effects on energy infrastructure and land rights in several states.