The U.S. Department of Energy (DOE) has finalized a $1.6 billion loan guarantee to a subsidiary of American Electric Power (AEP) to support the modernization and rebuilding of approximately 5,000 miles of transmission lines in Indiana, Michigan, Ohio, Oklahoma, and West Virginia. The project is intended to improve grid reliability and increase capacity in regions experiencing significant growth, while also creating more than 1,000 construction jobs.
The loan guarantee aligns with President Trump’s Executive Order focused on strengthening the reliability and security of the national electric grid. According to U.S. Secretary of Energy Chris Wright, “Thanks to President Trump and the Working Families Tax Cut, the Energy Department is ensuring the American people will have access to affordable, reliable and secure energy for decades to come. The President has been clear: America must reverse course from the energy subtraction agenda of past administrations and strengthen our electrical grid. This loan guarantee will not only help modernize the grid and expand transmission capacity but will help position the United States to win the AI race and grow our manufacturing base.”
This is the first loan guarantee closed under the Energy Dominance Financing (EDF) Program, which was established through the Working Families Tax Cut—also known as the One Big Beautiful Bill Act—signed into law earlier this year. The EDF Program requires that utilities receiving such loans must ensure that the financial benefits are passed on to their customers.
The DOE stated that this decision is part of its broader commitment to provide affordable, reliable, and secure energy nationwide. The project underwent evaluation under new guidance from the Loan Programs Office, which was directed by Secretary Wright, reflecting an emphasis on responsible stewardship of taxpayer funds.
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