Pacific Northwest hydrogen hub funding cut shows how DOE money is paid out in stages

The Department of Energy cut the Pacific Northwest Hydrogen Hub federal funding entirely on October 2, 2025, after the hub had already cleared the same first stage as 3 other regional hubs, which were paid only 2% to 3% of their full funding ceiling to get there.

41the number of phases the Department of Energy divided ARCH2 own cooperative agreement into, spanning more than a decade, with the rest of the money released only as the hub hits milestones the department sets
About 3%1the share of ARCH2 own 925 million dollar funding ceiling actually paid out at the Phase 1 stage, a MAOWCE calculation from the hub own award announcement
October 2, 20254the date the Pacific Northwest Hydrogen Hub own statement confirmed the Department of Energy had cut its federal funding entirely, after the hub had already reached Phase 1

How DOE hydrogen hub money actually gets paid out

A hydrogen hub funding cut just showed exactly what a federal grant recipient risks if it does not clear the next gate. The Appalachian Regional Clean Hydrogen Hub, ARCH2, states in its own words how DOE hydrogen hub money actually gets paid out. Its cooperative agreement, the legal contract that sets the terms of the federal award, is divided into 4 phases that span more than a decade, and the money beyond the first phase unlocks only as the hub reaches specific milestones the department sets. ARCH2 was awarded 30 million dollars for Phase 1, against a total ceiling of up to 925 million dollars, the most the hub can ever receive under the agreement, about 3% of that ceiling, a MAOWCE calculation from that same announcement. The other 97% stays locked behind milestones still years away, so reaching Phase 1 is a start, not a guarantee.

Two more hubs reach the same first phase

Two more hubs reached Phase 1 about 6 months later, in January 2025. The Heartland Hydrogen Hub was awarded 20 million dollars against a matching 925 million dollar ceiling, and the Mid Atlantic Hydrogen Hub, known as MACH2, was awarded 18.8 million dollars against a 750 million dollar ceiling, the Department of Energy own announcement states. Both figures sit in the same small range as ARCH2 own opening share.

Phase 1 award compared with the total funding ceiling, by hubPhase 1 award actually paidremaining ceiling still locked behind future milestones
Appalachian, ARCH230 million released of 925 million dollarsHeartland Hydrogen Hub20 million released of 925 million dollarsMid Atlantic Hydrogen Hub, MACH218.8 million released of 750 million dollars02505007501000millions of dollars

The Heartland and Mid Atlantic figures come from the Department of Energy own January 2025 announcement, source 2. The Appalachian figure comes from that hub own July 2024 announcement, source 1, more than 6 months earlier. All 3 are Phase 1 snapshots, not a current 2026 balance.

Source 2.

Show the numbers
Appalachian, ARCH230 million released of 925 million dollars
Heartland Hydrogen Hub20 million released of 925 million dollars
Mid Atlantic Hydrogen Hub, MACH218.8 million released of 750 million dollars

A shorter timeline for the Midwest hub

A fourth hub, the Midwest Alliance for Clean Hydrogen, known as MachH2, not the same hub as the similarly named Mid Atlantic MACH2, reached Phase 1 in November 2024 at 22.2 million dollars, on a stated 12 to 18 month timeline, shorter than the 36 months ARCH2 was given, since each hub own timeline is set on its own terms. Governors spoke when MachH2 signed its agreement with the department.

Today's partnership between MachH2 and the DOE will help us grow Michigan's economy, meet our climate goals, and uplift families in every corner of Michigan.

Gretchen Whitmer, Governor of Michigan, speaking when MachH2 signed its cooperative agreement with the Department of Energy. Source 3.

The development of a robust clean hydrogen economy represents the decisive action necessary to curb the devastating effects of climate change.

JB Pritzker, Governor of Illinois, speaking when MachH2 signed its cooperative agreement with the Department of Energy. Source 3.
Phase 1 dollar awards across the 4 hubs that reached it
010203030AppalachianARCH220Heartland18.8Mid AtlanticMACH222.2MidwestMachH2millions of dollars

The Appalachian figure comes from that hub own July 2024 release, source 1. The Heartland and Mid Atlantic figures come from the Department of Energy own January 2025 announcement, source 2. The Midwest, MachH2, figure comes from that hub own November 2024 release, source 3. All 4 are each hub own Phase 1 announcement, not a current 2026 balance.

Source 2.

Show the numbers
Appalachian ARCH230
Heartland20
Mid Atlantic MACH218.8
Midwest MachH222.2

The Pacific Northwest hydrogen hub funding cut

The Pacific Northwest Hydrogen Hub, PNWH2, had also reached Phase 1 before the funding cut. On October 2, 2025, the hub own statement confirmed the Department of Energy had cut its federal funding entirely, before the hub could clear the milestones that would have unlocked the rest of its ceiling. The hub states no dollar figure for what was cut, and says it intends to keep operating on non federal support instead. The cut is the clearest proof in the program record that reaching Phase 1 does not mean keeping the money. Anyone checking whether a specific hydrogen hub still has federal backing now has an answer with a name attached, Pacific Northwest lost its money, the other 4 hubs named here had not, as of the dates in their own announcements.

The program behind the phases

The phase structure sits inside a wider 8 billion dollar national hydrogen hub program, funded through the Bipartisan Infrastructure Law, of which up to 7 billion dollars was set aside to establish 6 to 10 regional hubs, the Department of Energy own program page states. Every hub named here signed the same kind of milestone gated agreement PNWH2 did, and none of the 4 still standing has stated it has advanced past Phase 1 as of this article publication date.

Sources

  1. Agreement Reached to Build Appalachian Regional Clean Hydrogen Hub (ARCH2). Appalachian Regional Clean Hydrogen Hub, ARCH2. Published 2024-07-31. Accessed 2026-09-16.
  2. OCED Awards Final Two Regional Clean Hydrogen Hubs to Establish Critical Energy Infrastructure in America's Heartland and Mid Atlantic. United States Department of Energy, Office of Clean Energy Demonstrations. Published 2025-01-17. Accessed 2026-09-16.
  3. Midwest Alliance for Clean Hydrogen (MachH2) Signs Cooperative Agreement with U.S. Department of Energy (DOE), Moves into Phase 1. Midwest Alliance for Clean Hydrogen, MachH2. Published 2024-11-20. Accessed 2026-09-16.
  4. PNWH2 Statement on DOE Funding Cuts. Pacific Northwest Hydrogen Hub, PNWH2. Published 2025-10-02. Accessed 2026-09-16.
  5. Regional Clean Hydrogen Hubs. United States Department of Energy, Office of Clean Energy Demonstrations. Accessed 2026-09-16.

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