$1.2 Billion in US DAC Hub Funding: Cancelled. What Happens Now?
In October 2025, the Trump administration cancelled over $1.2 billion in federal funding for the two flagship US Direct Air Capture hubs — Project Cypress in Louisiana and the South Texas DAC Hub. It was the single largest withdrawal of public capital from the CDR sector in history. The fallout is still shaping the market today. What Changed The Biden administration spent 2021-2024 building DAC as a standalone climate industry. The Bipartisan Infrastructure Law and Inflation Reduction Act provided the architecture: direct federal co-funding for first-of-a-kind commercial facilities, designed to prove that DAC can work at scale and attract private capital. ...