1. United States
2. Iowa
3. Letter

The decision by the Department of Government Efficiency (DOGE) to severely cut staff at the Department of Energy's Loan Programs Office risks stalling critical investments in American energy innovation and domestic manufacturing. As reported, several major loan recipients have already scrapped plans for new factories due to frozen loans, including battery manufacturers Kore Power, Freyr Battery, and Aspen Aerogels. This jeopardizes the growth of the U.S. electric vehicle industry and energy sector, which have benefited greatly from the LPO's financing for high-risk but nationally important projects. While the LPO provided Tesla with a pivotal $465 million loan in 2010 to launch the Model S program, cutting this office now would cripple other startups and companies from accessing similar vital funding. The LPO is highly efficient, generating income for the DOE, and its specialized technical staff is essential for evaluating and monitoring large-scale energy investments. Without action to protect the LPO, the U.S. risks falling behind in emerging technologies like new nuclear energy development, undermining economic competitiveness. The dismantling of the very program that catalyzed Tesla's success demonstrates a concerning lack of regard for nurturing domestic innovation and manufacturing. Upholding the legislative intent behind the LPO's creation is crucial for the nation's long-term energy leadership and economic interests. Action from Congress is urgently needed to safeguard this vital office before irreversible damage is done.