DOGE Is Obliterating American Industry - The American Prospect

[justaprogressive]

One of the hidden gems of American government is a small division of the Department of Energy called the Loan Programs Office. This is a government bank that hands out loans to companies with business plans that go beyond the technological frontier, with ideas nobody has tried before. Commercial banks will generally not loan to such companies—as a rule, private bankers want something that is already proven to work—so the LPO helps such entrepreneurs get from the drawing board to producing and selling an actual product.

The LPO has funded thousands of successful projects, from renewable-energy installations, to solar and battery factories, to new low-emission industrial processes, to power grid upgrades, to the first new nuclear power plant in decades, to domestic EV companies, and much more in that vein. It has virtually no overhead, with just a few hundred staffers running a fund of more than $400 billion. Almost all of these projects are successfully paying back their loans. For any government—and especially the American one, with its underfunded and sclerotic agencies—this counts as a smashing success.

But not for much longer. The LPO is being gutted by Elon Musk—who got an LPO loan himself just 15 years ago—and his DOGE goons. New loans have been frozen, it seems permanently. Worse, a reported 60 percent of LPO staff has already accepted DOGE buyouts, with more to come. Even existing loans are under threat; the California utility PG&E recently requested a rate hike in part because its $15 billion LPO loan faces “substantial uncertainty.” One battery company has canceled a planned LPO-funded factory in Arizona, while another has canceled its planned LPO-funded factory in Georgia and moved it to China. (America First!)

The LPO did fund one high-profile failure during the Obama administration: the solar company Solyndra, which Republicans successfully spun into a major scandal. But this is simply how business loans work, whether it’s the government or private banks doing it. Any business plan might fail, which is why a company pays interest on its loan in the first place. By 2023, the LPO had made almost ten times in interest payments what it lost on Solyndra.

https://prospect.org/environment/2025-05-05-doge-obliterating-american-industry/

[Grins]

1. Something similar in Michael Lewis' book

Pretty sure it was his book, “The Fifth Risk.”

One Story is a gov. employee traveling to an event in MAGA Land. A local “entrepreneur” is getting a badly needed check from the local bank for his startup.

Small town = BIG deal! They hold a public event!

On the podium is the mayor, the bank, and the Reich-wing MAGA, big government and deep-state hatin’ recipient. Banker and mayor hand the Reich-wing blowhard one of these ceremonial checks, blown up super-size! Lots of pics. “Local boy does good” shit.

After, our Reich-wing big government blowhard meets that government employee. As soon as he learns she is from Washington, his MAGA, big government hatin’ attitude kicks into overdrive.

“What are YOU doing here?”

She replied politely. More politely than I would.

MY REPLY would have been:

“Who the hell do you think gave you that money??? Your little rural bank? Because you have this “great idea?” They wouldn’t lend you $5. The Department of AGRICULTURE made that grant to you, using your local back to manage the transfer. And you’re welcome.”

Instead he got the polite response:

“It’s my department that gave you that money.”

MAGA Moron: STUNNED. SILENCE.

He had no clue the $$$$ was from the federal government. He thought his local bank saw greatness when the venture capitalists DIDN’T.

Fun part - the mayor knew the $$ was from the Department of Agriculture. When it came time to blowup the government check - he asked to have the words “U.S. Department of Agriculture” removed!

Which tells you PLENTY about his town and state.

Book was terrific. Read it. Its early emphasis is on the complete ignorance of Trumpers coming in to lead or manage federal agencies who are CLUELESS about the agency they are leading/managing actually does.

But that was in 2017-2018.
Which makes DOGE in 2025 even more terrifying.

[Attilatheblond]

2. Business loans for start ups and small businesses that might compete with the already obscenely rich?

Nah, they won't put up with that happening.

[Demovictory9]

3. "The LPO is being gutted by Elon Musk--who got an LPO loan himself just 15 years ago"