The U.S. Department of Energy (DOE) has finalized a $1.6 billion loan guarantee aimed at improving the reliability of the electrical grid in the Midwest. The announcement was made by Secretary of Energy Chris Wright, who said the funding will support a subsidiary of American Electric Power (AEP) in reconductoring and rebuilding approximately 5,000 miles of transmission lines. The project will span Indiana, Michigan, Ohio, Oklahoma, and West Virginia.
According to Secretary Wright, “Thanks to President Trump and the Working Families Tax Cut, the Energy Department is ensuring the American people will have access to affordable, reliable and secure energy for decades to come. The President has been clear: America must reverse course from the energy subtraction agenda of past administrations and strengthen our electrical grid. This loan guarantee will not only help modernize the grid and expand transmission capacity but will help position the United States to win the AI race and grow our manufacturing base.”
The DOE stated that the loan guarantee was reviewed under new guidance from the Loan Programs Office, as directed by Secretary Wright. The initiative is part of President Trump’s Executive Order to enhance the security and reliability of the U.S. electric grid. The project is expected to create more than 1,000 construction jobs in the affected states.
This financial close marks the first loan guarantee completed under the Energy Dominance Financing Program, which was established by the Working Families Tax Cut—also referred to as the One Big Beautiful Bill Act. President Trump signed this legislation into law earlier in the year. Under this program, utilities that receive loans must ensure that financial benefits are passed on to their customers.
The DOE reiterated its commitment to using all available tools, including the Loan Programs Office, to provide affordable, reliable, and secure energy for Americans.
