The Trump administration has approved a $1.6 billion loan guarantee for American Electric Power Company, Inc. (AEP.US) to upgrade the electrical grid in five states.

The Trump administration has finally approved $1.6 billion in financing to a subsidiary of the American Electric Power Company, Inc. (AEP.US) to upgrade a 5000-mile utility transmission line across five states. The U.S. Energy Department said on Thursday that this loan guarantee is the first of its kind under President Trump's administration and will be used to replace and rebuild transmission lines in Indiana, Michigan, Ohio, Oklahoma, and West Virginia. The statement added that this work will enhance the reliability and capacity of the fast-growing region's electric grid. This approval comes after a review of the $40 billion loan program office at the Energy Department. Energy Secretary Chris Wright had criticized the agency for issuing billions of dollars in loans from the time of Trump's election to inauguration. The financing for American Electric Power Company, Inc., based in Columbus, Ohio, is part of a package initiated by the previous administration in the final days before President Joe Biden took office, providing nearly $23 billion in conditional loan guarantees to seven utility companies. Although Trump had considered cancelling the loan program during his first term, the Energy Department intends to use it to fund coal projects, advanced nuclear reactors, and other priorities. Wright stated in a release, "This loan guarantee will not only help modernize the grid and expand transmission capacity but will also help America compete in the artificial intelligence race and strengthen our manufacturing base." He added that this financing aligns with the Trump administration's goal of "unleashing energy dominance" while responsibly managing taxpayer funds.