Federal funding cuts hit projects at Caterpillar, Komatsu

PEORIA, Ill. (WMBD) — Caterpillar and Komatsu are set to lose a combined $5.8 million due to recent funding cuts to Democratic states, according to congressional Democrats.

Shortly after the government shutdown, the Trump administration’s Department of Energy cut $8 billion in climate projects in 16 states. These 16 states all voted for former Vice President Kamala Harris in the 2024 presidential election.

This includes Illinois.

Illinois’ 17th Congressional District, which includes Peoria, Bloomington, and Normal, would lose over $54 million in federal funding, according to U.S. Rep. Eric Sorensen, a Democrat.

“This isn’t about saving taxpayer dollars. The funding was already approved. This is about politics, plain and simple — and our families will pay the price,” he said.

Both of these grants came out of the DOE’s Office of Energy Efficiency and Renewable Energy, that gives out funding for projects to reduce greenhouse emissions.

Caterpillar will lose $3.2 million due to the federal grant cuts, according to Appropriations Committee Democrats.

That grant helped fund Caterpillar research on hydrogen engine technology and whether it could outperform diesel-based engines.

According to USAspending, the grant was awarded back on Oct 01, 2023. Since then, the Peoria based company has only received $360,000 from the federal government out of the $3.2 million promised.

While the website doesn’t report that the program has been cancelled, the website said new information could be delayed due to a “lapse in funding.”

According to that same site, Komatsu’s cancelled grant was developing hydrogen-based technology for mining.

The company would lose $2.5 million in federal funds from the cancellation of this grant. However, according to USAspending, the grant ended in May 2025, and the company did not receive any money from the federal government.

U.S. Rep. Darin LaHood, Caterpillar and Komatsu did not immediately respond to requests for a comment.