President Trump speaks during an event at the White House in Washington, D.C., on Thursday, Feb. 6, 2020.

President Donald Trump's proposed budget would reportedly kill a loan program that assisted automakers such as Ford Motor and Tesla in producing more environmental-friendly vehicles, including Tesla's all-electric Model S.

The proposed cut, according to the 2021 budget proposal, is to the U.S. Energy Department's Advanced Technology Vehicles Manufacturing Loan Program, which has distributed more than $8 billion in loans to companies to produce such vehicles, according to the program's website.

Most recently, electric vehicle startup Lordstown Motors, which purchased GM's shuttered Lordstown Assembly plant in Ohio, was in discussion with government leaders about a loan from the Advanced Technology Vehicles Manufacturing Loan Program.

Lordstown Motors, in an emailed statement on Monday to CNBC, said it had not yet applied for the loan. It said the company continues to evaluate its options for financing: "We are continuing conversations with government leaders as we explore our options, but we see it as one of our many options to consider. We will factor this new information into our decision making process, but our business model stands on its own without it."

A spokesperson for the federal program, which awarded its first loan in 2009, did not immediately respond for comment. The budget refers to the program and others as "costly, wasteful, or duplicative programs."