Senator John Kennedy exposed a shocking rush of $93 billion in loans approved by the Biden administration in its final days, leaving many questioning whether proper vetting procedures were followed for these massive taxpayer-funded commitments.
At a Glance
- Energy Secretary Chris Wright admitted $93 billion in loans were approved in just 76 days before Biden left office
- This amount was more than double what was loaned in the previous 15 years
- Many loan recipients allegedly lacked business plans or financial solvency information
- Senator Kennedy raised serious concerns about the lack of due diligence for these rushed approvals
- A significant portion of these loans went to green energy initiatives, including a controversial Ford EV battery plant
Record-Breaking Loan Approvals Questioned
During a recent Senate Appropriations Committee hearing, Senator John Kennedy of Louisiana confronted U.S. Energy Secretary Chris Wright about an unprecedented wave of loan approvals that occurred during President Biden’s final days in office. The exchange revealed that the Department of Energy authorized a staggering $93 billion in loans and commitments in just 76 days before the administration change.
This figure represents more than twice the amount of loans issued by the department over the previous 15 years, raising serious questions about the approval process and proper oversight of taxpayer dollars.
Kennedy, clearly stunned by the revelation, pressed Wright on how such extensive loan evaluations could possibly be conducted properly in such a compressed timeframe. The senator’s questioning highlighted concerns about whether adequate vetting procedures were followed for these massive financial commitments, especially given their potentially significant impact on taxpayers should the loans fail to perform as expected.
Lack of Due Diligence Exposed
Perhaps most alarming in the exchange was Wright’s admission that many loan recipients apparently lacked basic financial documentation. When questioned about the vetting process, the Energy Secretary acknowledged that numerous entities received approval without providing standard business plans or financial solvency information. This revelation suggests a significant departure from standard lending practices that typically require thorough financial analysis before committing large sums of money.
“How do you vet and do due diligence on a loan in 76 days? One loan, much less $93 billion dollars. How do you do it?”, Kennedy said
The hearing highlighted a particularly controversial 2023 federal loan to Ford for electric vehicle battery plant projects. This loan, part of the Biden administration’s push for green energy initiatives, has become emblematic of concerns about politically-motivated lending practices that prioritize certain industries without proper financial scrutiny. Critics have pointed to such examples as evidence of misaligned priorities that could potentially burden taxpayers with significant financial risks.
Broader Concerns About Government Efficiency
During the hearing, Senator Kennedy also praised Elon Musk’s efforts through the newly formed Department of Government Efficiency (DOGE) to address systemic waste and inefficiency in federal spending. This reference suggests growing bipartisan concern about the management of government finances across multiple agencies and programs. The massive loan approvals questioned during the hearing appear to represent exactly the kind of rushed government spending that efficiency advocates have been criticizing.
“From the loan program office, in loans and commitments, $93 billion dollars. Well over twice as much as in the previous 15 years,” said U.S. Energy Secretary Chris Wright.
The controversy over these loans comes as Senator Kennedy has also led successful efforts to undo other Biden-era financial regulations. The Senate recently passed Kennedy’s resolution to block a rule from the Office of Comptroller of the Currency that complicated the bank merger approval process. Kennedy and his colleagues argued that the Biden administration’s banking regulations had created unnecessary barriers to efficient operations and ultimately harmed consumers by reducing competition in the banking sector.
Next Steps and Accountability
The revelations from the Senate Appropriations Committee hearing have sparked calls for further investigation into the approval process for these loans. Concerns about government waste and potential corruption have intensified following Wright’s testimony, with many conservatives demanding greater accountability for how taxpayer dollars are allocated, particularly in politically charged areas like green energy investment. As the new administration evaluates these loan commitments, questions remain about whether they can be reviewed or potentially modified.
