Politics

Trump Taps Wartime Powers To Revive Long-Stalled Pipeline With $42 Million In Taxpayer Funds

Official White House Photo by Patrick B. Ruddy

President Donald Trump’s administration is putting up to $42 million in federal funding behind a natural gas pipeline that New York helped derail years ago, invoking national defense powers to revive the project as the White House pushes to lower energy costs across the Northeast.

The Department of Energy (DOE) announced Monday that the funding would advance the proposed 125-mile Constitution Pipeline, which would transport natural gas from Pennsylvania to New York. The money would come through the Defense Production Act (DPA), a federal law granting the president authorities to strengthen industrial capabilities deemed essential to national defense.

“This is an outstanding use of the Defense Production Act — in fact it needs to be expanded, not only to the pipeline, but also to ALL Refineries in the United States,” energy analyst Stuart Turley told the Daily Caller News Foundation. Turley argued that increasing refining capacity could help lower gasoline and diesel prices without forcing consumers to reduce demand.

The project could lower electricity and home heating costs while reducing the risk of blackouts during periods of peak demand, Energy Secretary Chris Wright said in the announcement.

“Despite America having an abundant supply of low-cost natural gas, tens of millions of Americans have limited access to this reliable energy source due to a lack of pipeline infrastructure,” Wright said.

The $42 million would support permitting, environmental reviews, engineering and other preconstruction activities, according to the DOE. The department also indicated that funding could support complementary natural gas infrastructure after the necessary permits are secured.

The pipeline was originally approved by the Federal Energy Regulatory Commission (FERC) in 2014, but New York regulators denied a critical water-quality certification in 2016, citing concerns about the project’s potential environmental impacts. Developers eventually abandoned the project in 2020 following years of legal and regulatory disputes, according to Fox Business.

Williams Companies, the energy infrastructure firm developing the pipeline, is now seeking renewed federal approval and projects that the pipeline could begin operating in late 2028. The company estimates that the pipeline could transport enough natural gas to meet the equivalent daily needs of approximately three million Northeast homes.

Williams Companies, the DOE and the New York’s Department of Environmental Conservation and FERC each did not immediately respond to the DCNF’s requests for comment.

New York’s Department of Environmental Conservation acknowledged the withdrawal of the developer’s renewed water-quality certification application in November 2025. The state has disputed claims that it waived its authority to review the project.

Environmental groups have also raised concerns about the pipeline’s potential effects on wetlands, waterways and forests, according to a June FERC notice. The commission subsequently prepared an environmental assessment as part of its renewed review of the project.

The administration’s funding follows an April presidential determination identifying natural gas pipelines, processing facilities and storage infrastructure as essential to national defense. Congress also appropriated $1 billion for energy-related projects deemed critical to national security, according to the DOE.

“If I lived in New England I’d be furious at [former Democratic New York Gov.] Andrew Cuomo and [Democratic New York Gov.] Kathy Hochul for costing me thousands of dollars in utility bills while they delayed this project for cynical partisan reasons,” energy analyst David Blackmon told the DCNF.

Interior Secretary Doug Burgum, who also chairs the National Energy Dominance Council, argued that restrictive energy policies have contributed to higher costs for families and businesses in New York and other Democratic-led states.

“This historic investment in New York will help deliver the reliable, secure energy Americans deserve while saving families across the Northeast billions of dollars,” Burgum said in the DOE announcement.

New England households are bracing for another costly winter, with heating oil bills projected to jump 21 percent as rising fuel prices threaten to squeeze family budgets. The projected increase would mark the steepest rise among major residential heating fuels, placing additional financial pressure on households that depend on oil to stay warm.

The looming winter heating crunch underscores the Northeast’s exposure to volatile fuel prices, particularly in states such as New York, Pennsylvania and New Hampshire. The Trump administration argues that expanding natural gas pipeline infrastructure could help ease regional supply constraints, lower household energy costs and reduce the risk of electricity shortages during periods of peak winter demand.

Turley argued that the administration should extend its use of the DPA beyond natural gas pipelines to refineries facing closure, particularly in California, where he warned that shrinking refining capacity could threaten the nation’s fuel supply.

“They could expand the ones slated to close through the DPA and help stave off a National Security Crisis about to unfold in California,” Turley told the DCNF.