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All CutsDOEEERE Programs
eliminationmajor impact Alabama impact Budget PDF p. 22

Energy Efficiency and Renewable Energy Office (Abolished)

(EERE Programs)

Department of Energy
Proposed Cut
$2.0B
% Reduction
65.0%
Action Type
elimination
Who Is Served

Weatherization Assistance Program (~35,000 low-income households/yr); renewable energy researchers; state energy offices

Summary

The Energy Efficiency and Renewable Energy Office (EERE) at the Department of Energy funds renewable energy research, state energy programs, and the Weatherization Assistance Program, which helps low-income families make their homes more energy-efficient. The FY2027 budget proposes cutting $2,000 million (65%) from this area, eliminating the EERE office structure and ending federal weatherization and efficiency funding while shifting priorities toward fossil fuel energy research.

Who Is Affected

The cut would end weatherization help for roughly 35,000 low-income households per year who currently get free home upgrades like insulation and air sealing through the Weatherization Assistance Program, a program that has served more than 7.2 million homes since 1976. It would also eliminate funding that supports about 8,500 related jobs, state energy offices that run local weatherization and planning programs, and federal researchers and grant recipients working on wind, solar, and other renewable energy technologies.

What this cut would actually mean

Without federal weatherization funding, low-income households, including many seniors and people on fixed incomes, would lose access to free home energy upgrades that save an average of over $370 a year on utility bills, leaving more families struggling with high heating and cooling costs or unsafe, drafty homes. Renewable energy research programs for wind and solar technology would largely stop, slowing innovation and potentially costing jobs at national labs and universities, while state energy offices would lose federal support for local energy assistance programs, shifting more of the financial burden onto states and charities that may not be able to fully replace the lost funding.

Why this hits Alabama harder

Alabama has one of the highest poverty rates in the country, and low-income families there rely heavily on programs like the Weatherization Assistance Program to lower home energy costs and stay safe in extreme heat and cold. Because Alabama has more poor and rural households per capita than most states, cutting this program would take away help from a larger share of Alabama families than families in the average state. Alabama's hot summers and aging housing stock also mean many households already spend a bigger part of their income on energy bills, so losing weatherization help would hit harder here than in most other states.

Sources

Administration's Stated Rationale

EERE office abolished; fossil fuel energy research prioritized; weatherization and efficiency programs eliminated.