The Trump administration has terminated federal grants that would have helped modernize the U.S. electrical grid, putting billions of dollars in planned upgrades at risk. Utilities have begun to pull back on projects that were counting on that federal support.

In Wisconsin, Alliant Energy called off a project designed to reduce power outages in disadvantaged and tribal communities after the administration ended the grant that would have funded it. In California, the Sacramento Municipal Utility District faces similar disruption from the grant termination.

The cancelled grants represent a setback for grid reliability at a time when extreme weather and rising electricity demand are straining the system. Without the federal funding, utilities may have to defer critical infrastructure work or shift the burden to ratepayers.