WASHINGTON  Cars powered by hydrogen fuel cells, once hailed by President George W. Bush as a pollution-free solution for reducing the nation’s dependence on foreign oil, will not be practical over the next 10 to 20 years, the energy secretary said Thursday, and the government will cut off funds for the vehicles’ development.

Developing those cells and coming up with a way to transport the hydrogen is a big challenge, Energy Secretary Steven Chu said in releasing energy-related details of the administration’s budget for the year beginning Oct. 1. Dr. Chu said the government preferred to focus on projects that would bear fruit more quickly.

The retreat from cars powered by fuel cells counters Mr. Bush’s prediction in 2003 that “the first car driven by a child born today could be powered by hydrogen, and pollution-free.” The Energy Department will continue to pay for research into stationary fuel cells, which Dr. Chu said could be used like batteries on the power grid and do not require compact storage of hydrogen.

The Obama administration will also establish eight “energy innovation hubs,” small centers for basic research that Dr. Chu referred to as “Bell Lablettes.” These will be financed for five years at a time to lure more scientists into the energy area.