Hey DOGE: If You Want To Make Yourself Useful, Kill the Federal Energy Loan Program
Since its inception over a month ago, the Department of Government Efficiency (DOGE) has identified cost savings of $105 billion—which may be an overestimation. Regardless of the exact figure, DOGE has brought to light some (of the many) layers of wasteful spending within the federal government, which includes the Department of Energy’s Loan Programs Office (LPO).
The LPO was created in 2005 to finance high-risk, first-of-a-kind cleantech projects. Since its founding, the office has funded $43.9 billion worth of projects. While some of these have included eventual winners like Tesla, the program has mostly been marred by failed projects and wasteful spending—which permeates throughout the LPO today.
In December 2024, the Energy Department’s Inspector General (I.G.) identified several violations of conflicts of interest, which could give applicants an unfair advantage when applying for federal money. The I.G. concluded that the LPO “is administering more than $385 billion in new loan authority” without properly vetting, managing, or tracking conflicts of interest.
In light of the report, the Energy Department has “paused all new loan actions,” Jonathan Black, the agency’s chief adviser for oversight, told the House Committee on Energy and Commerce Subcommittee on Oversight and Investigations in February.
This is not the first time the I.G. warned about potential waste, fraud, and abuse at the LPO. A November 2024 report called the program—whose
Article from Reason.com
The Reason Magazine website is a go-to destination for libertarians seeking cogent analysis, investigative reporting, and thought-provoking commentary. Championing the principles of individual freedom, limited government, and free markets, the site offers a diverse range of articles, videos, and podcasts that challenge conventional wisdom and advocate for libertarian solutions. Whether you’re interested in politics, culture, or technology, Reason provides a unique lens that prioritizes liberty and rational discourse. It’s an essential resource for those who value critical thinking and nuanced debate in the pursuit of a freer society.
