Why the Department of Energy Layoffs Will Continue to Increase Your Energy Costs

What's happening

On Friday, February 14, 2025, roughly 200,000 federal employees were abruptly locked out of their computers without warning. The cuts primarily affected probationary employees, spanning multiple federal agencies like the National Park Service, the Department of Veterans Affairs, and the Department of Energy (DOE). 

It's estimated that around 2,000 DOE employees were cut, roughly 14% of the Department's total workforce, excluding contractors. 

What we know

This round of federal layoffs comes as no surprise, as the Trump Administration has already cut a substantial number of federal positions since Inauguration Day. 

According to the New York Times, the DOE job losses came after the U.S. Department of Government Efficiency (DOGE), run by tech billionaire Elon Musk, visited the Department. Employees were notified that their employment "would not be in the public interest" and that they were removed from their positions, effective immediately. 

Some of the DOE offices impacted by the layoffs include:

• The National Nuclear Security Administration, which protects our nation's nuclear weaponry and is integral to international security. It's reported that some of the layoffs within the NNSA have been rescinded. 

• The Loan Program Office, which provides loans to accelerate the growth of infrastructure projects, including clean energy, transportation, and accessibility projects.

• The Grid Deployment Office, which aims to modernize the electric grid through transmission projects and generation facilities. 

• Bonneville Power Administration and Western Area Power Administration are both responsible for marketing and delivering power to the Western United States. 

The changes to the DOE come on the heels of establishing the National Energy Dominance Council, a new advisory group led by Interior Secretary Doug Burgum and Energy Secretary Chris Wright, designed to increase domestic energy production and reduce permitting timelines. 

What this means

Donald Trump's "Apprentice"-style second term aims to project efficiency, cost savings, and decisive action. But when it comes to energy policy, that couldn't be further from the truth. The cuts to the Department of Energy, new tariffs that impact solar panels and energy, and the attack on other sectors of the energy industry signal that electricity will continue getting more expensive while service quality suffers.

For years, Americans have struggled with rising energy costs. Aging infrastructure, coupled with increasing demand, has pushed grid reliability to its limits, with the average utility customer in 2023 experiencing blackouts that were 55% longer than they were in 2013.  Stress on the grid won't let up anytime soon, as demand could rise by 18% by 2033, made worse by the energy needs of power-hungry AI data centers. Yet, the office responsible for modernizing the grid is losing resources. 

Trump has expressed concepts of plans for meeting energy demand, his most notable one being "drill, baby, drill". But, the thing is, the United States is already drilling, baby. We produce more crude oil than any country ever, and our gas production has increased significantly since 2008. Fossil fuels have limits, yet they want to double down and support our growing energy demand on a finite resource. Why?

The answer is simple: money. A look at the leadership of the newly formed National Energy Dominance Council makes it clear what the administration's goals are. The people in charge are tied to the fossil fuel industry, and it's in their best interest to diminish the deployment of renewables. 

Interior Secretary Doug Burgum, previously the governor of North Dakota (one of the country's top oil-producing states), received substantial campaign donations from the oil and gas sector. Energy Secretary Chris Wright is the former CEO of North America's second-largest fracking company, has called zero-carbon energy goals "sinister", and has pushed to revive coal even though it's inefficient and more expensive than renewable alternatives. Both men will influence the nation's energy policy, not in the favor of the American people, but of fossil fuel executives and the ultra-wealthy.

The attack on the Department of Energy has made it clear where the administration's priorities lie, and it's not with ensuring affordable electricity or grid reliability. The focus remains on bolstering the fossil fuel industry at the expense of the American people. It seems like the Trump Administration's approach to energy policy is "Progress, you're fired!".