Pacific Northwest Hydrogen Hub: Promise Lost

The Pacific Northwest Hydrogen Association, spearheading a multi-state clean hydrogen economy, abruptly lost $1 billion in federal support after the White House announced sweeping energy project cuts. Elected officials in Washington and Oregon warned that this loss would freeze job creation and hobble regional clean energy ambitions, directly undermining thousands of SMART union jobs. More about this at GeekWire and Washington State Standard.

California’s ARCHES: A $1.2 Billion Blow

California’s ARCHES — a hydrogen production and distribution network — had its entire $1.2 billion federal grant rescinded. Governor Gavin Newsom and Senator Alex Padilla condemned the decision, warning that it jeopardizes more than 220,000 projected clean energy jobs across the state. Read the full analysis at California Energy Transition and the official statement at Padilla Press Release. For sheet metal contractors, these hubs represented a pipeline of high-value, long-term work — now vanished overnight.

Union Reaction: “Dysfunction in Washington”

SMART General President Michael Coleman issued a stark warning in response to the cuts: “This week, Washington politicians chose political games over working people, cancelling good, high-paying American jobs. ... These cancellations undermine America’s energy and national security. Working people should not pay the price for dysfunction in Washington. Our industries and our nation cannot operate under this kind of chaos.”

Coleman’s words echo frustrations from the first wave of cancellations earlier this year, when sheet metal jobs tied to steel, semiconductor, and data center projects evaporated almost overnight. In the original Megaproject Meltdown story, we chronicled the effect of policy volatility on local unions, contractors, and the broader HVAC supply chain. This latest reversal only deepens the uncertainty — especially for workers who were counting on hydrogen infrastructure as a next-generation growth engine.

A Broader Pattern: Megaprojects in Retreat

These are not isolated incidents. Of the seven hydrogen hubs originally selected for federal funding, at least five now face full termination, with over $20 billion in clean energy awards on the chopping block across the country. See more at Hydrogen Insight. In total, more than 138,000 construction jobs — many under project labor agreements — were at stake with these hydrogen hubs alone. State and union leaders are calling for immediate congressional action to restore funding and stabilize policy, before more capacity is shuttered and workforce investments are lost. Full coverage at Washington State Standard and FuelCellsWorks.

States have responded with their own policy moves to protect advanced manufacturing jobs and clean energy investment, as covered in States Race to Protect EV Manufacturing as Political Winds Shift.

What’s Next for the Sheet Metal Industry?

For SMART members and contractors, the message is clear: volatile federal policy is now the number one threat to future megaproject work. Where once the American boom in clean tech and advanced manufacturing drove record demand for sheet metal, HVAC, and ductwork, the new reality is one of delays, layoffs, and uncertainty. The industry is again urging Congress and the administration to restore key tax credits and federal support for the projects that underpin America’s industrial future.

As the dust settles on this latest round of cancellations, one thing is certain: the fate of American megaprojects — and the union jobs they support — will hinge on what happens in Washington in the months ahead.