This month, the Trump administration implemented significant reductions in the federal agencies responsible for managing power from hydroelectric dams, sparking concerns about potential grid instabilities in crucial data center markets. The recent layoffs resulted in a reduction of 13% to 20% of the workforce across the four Power Marketing Administrations, impacting employees ranging from linemen to teams that oversee power distribution on a minute-by-minute basis.

However, following criticism from lawmakers and customers, the Trump administration has reinstated at least some of the laid-off employees, as reported by E&E News.

The four Power Marketing Administrations are responsible for selling and transmitting hydropower generated from federally owned dams, including the Bonneville Dam in the Pacific Northwest and the Hoover Dam in the Southwest. The electricity produced by these dams, and managed by the respective agencies, supplies power to tens of millions of households across 34 states.

Notably, the agencies are self-funded through the sale of electricity and do not rely on financial support from the U.S. Treasury.