The Trump administration is set to approve a substantial $1.6 billion loan aimed at upgrading power lines across Indiana, Michigan, Ohio, Oklahoma, and West Virginia. This move marks a rare consensus with its predecessor on supporting an energy initiative.

On Thursday, the Department of Energy revealed plans to advance with this loan, which is anticipated to enhance or refurbish roughly 5,000 miles of power lines.

The funding, designated for a branch of American Electric Power, received provisional approval from the Biden administration back in January.

Energy Secretary Chris Wright informed reporters that this deal is the inaugural approval under the Trump administration’s oversight of the department’s Loan Programs Office, soon to be renamed the “Energy Dominance Financing Office.”

Wright confirmed that the terms of the loan will remain unchanged.

“We already have transmission lines in place but by replacing the conductors themselves, we can get more electricity that can avoid blackouts [and] allow the transportation of electricity to lower total system costs,” Wright said. 

“These are the kind of projects where we’re going to partner with businesses to make our energy system more efficient, more reliable, ultimately lower cost,” he added.

The move comes as the administration has given significant scrutiny to projects approved under Biden, including recently announcing the cancellation of nearly $7.6 billion for projects that are primarily located in Democrat-led states.

The department is expected to issue further cancellations to funding for more green projects, including in red states.