The U.S. Department of Energy announced late this month that it had terminated 321 financial awards supporting 223 projects nationwide, cutting $7.56 billion overall and eliminating $135.2 million that had been allocated to 10 projects in New Mexico. The action, made public Sept. 30 amid a federal shutdown, rescinds funds for programs that targeted renewable grid integration, hydrogen development, tribal clean energy planning and advanced nuclear research — areas of growing importance to San Juan County’s economy and energy landscape.

State media and the DOE’s official notice confirmed the terminations beginning Oct. 2, and coverage from outlets across New Mexico outlined immediate political and economic consequences. The cancellations have drawn swift criticism from state Democrats and federal lawmakers in New Mexico who say the cuts will undermine local progress toward cleaner energy and economic diversification. One U.S. senator described the action as unlawful, and state reporting has emphasized the breadth of projects affected across congressional districts.

San Juan County stands to feel the effects directly. The county’s economy remains anchored in oil and gas production even as local leaders and tribal governments pursue renewable development and energy sovereignty. Among organizations listed in state reporting as impacted was the Navajo Transitional Energy Company, which had been a recipient of funding for clean energy initiatives. Tribal clean energy planning and projects on the Navajo Nation are particularly vulnerable to delays or cancellations, heightening concerns about infrastructure, local jobs and long-term economic resilience.

Economic modeling remains incomplete, but early estimates from state reporting indicate the cuts could result in roughly 300 lost jobs statewide, with concentrated effects in regions like San Juan that are balancing legacy fossil fuel employment with new renewable energy ventures. Local suppliers, contractors and service providers that had positioned themselves to support the awarded projects could see contracts evaporate, producing a ripple effect through small-business networks and municipal revenues.

Beyond immediate employment impacts, the funding termination could slow research and technology development tied to national laboratories and university partnerships. Although direct links to Los Alamos and Sandia national laboratories are indirect for San Juan County, the statewide research ecosystem in energy makes the loss of federal support meaningful for long-term innovation and workforce training pipelines.

Coverage on Oct. 3 highlighted potential downstream consequences for consumers, with reporting noting that disruptions to renewable and grid-integration projects could influence utility costs. Additional verification remains necessary to compile the full list of the 10 New Mexico projects affected and to clarify the mix of technologies impacted — reporting has varied between emphasis on nuclear, hydrogen and renewable grid projects.

Local officials, tribal leaders and economic-development stakeholders will need to track whether state attorneys or congressional delegations pursue legal challenges, and whether any funds will be reallocated or restored if the federal shutdown resolves. For San Juan County, the immediate priorities are documenting local contract and employment losses, assessing impacts on tribal energy plans, and seeking clarity from federal and state authorities about the path forward for projects that were designed to support a cleaner, more diversified local economy.