Trump Administration Cuts $375M Grant for Eastman Recycling Plant, Threatening Jobs and Climate Progress

The Trump administration’s rollback of a $375 million Department of Energy grant for Eastman Chemical’s planned molecular recycling plant in Harrison County, Texas, is a devastating blow to both the local economy and environmental progress. U.S. Rep Nathaniel Moran (R-Tyler) expressed sharp frustration at the decision, calling it unfair and lacking in logic.

Eastman had planned a $1.2 billion facility to convert discarded plastics into reusable materials using cutting-edge technology. The plant promised approximately 1,000 construction jobs and 200 permanent positions, marking the largest economic investment in the region’s history. Local tax incentives had already been granted to support the project.

Originally awarded under the Biden administration, the grant was abruptly pulled in May 2025 as part of the Trump administration’s Department of Government Efficiency cost-cutting efforts. Officials justified the cuts by claiming the grants were not the best use of taxpayer funds, but Moran and Eastman leaders strongly dispute that assessment.

“We have worked very closely with Eastman on that, and it was devastating to see the administration do that in a manner that I thought was not based on fact, not based on logic, and frankly, not based on the fairness of the fact that this facility had put in a ton of money,” Moran told the Longview Rotary Club.

Eastman spokeswoman Kristin Parker confirmed the company is reassessing the project’s scope and timing but remains committed to its leadership role in the circular economy. Despite the setback, the company is moving forward with the air quality permit process, a necessary step for any future development.

The cancellation of this grant fits a broader pattern of the Trump administration dismantling federal support for projects that advance environmental sustainability and economic development in local communities. By stripping funding from initiatives like Eastman’s recycling plant, the administration undercuts both climate solutions and job creation.

Local stakeholders and Moran vow to continue pushing for restoration of the grant, but with no clear timeline or guarantee, the future of this critical project remains in limbo. Meanwhile, the community faces the loss of a transformative investment that could have positioned East Texas as a leader in innovative recycling technology.

This episode exposes how the Trump administration’s cost-cutting crusade often comes at the expense of public good, undermining projects that address urgent environmental challenges and support working families. The stakes are high, and the fallout will be felt long after the grant was rescinded.