Department of Energy
Overview
The Department of Energy's overall FY2027 budget would rise compared to FY2026, but several key programs face steep cuts within that total. The largest reductions include eliminating the $2 billion Energy Efficiency and Renewable Energy office, canceling $15.2 billion in infrastructure-law clean energy projects, and cutting Office of Science research funding by $1.1 billion and ARPA-E innovation funding by half. These changes would most affect low-income households relying on weatherization help, renewable energy and clean-tech companies, university and national lab researchers, and early-stage energy startups, while communities near legacy nuclear weapons sites would see a smaller funding reduction for environmental cleanup.
5 programs affected · $18.8B total proposed reduction
Program-level cuts
IIJA Clean Energy
Infrastructure Investment and Jobs Act Clean Energy Funding (Rescission)
Clean energy companies; communities expecting grid modernization, hydrogen hubs, carbon capture projects
EERE Programs
Energy Efficiency and Renewable Energy Office (Abolished)
Weatherization Assistance Program (~35,000 low-income households/yr); renewable energy researchers; state energy offices
22,000 researchers at 300+ institutions; 17 national laboratories; basic physics research
Communities near legacy nuclear weapons sites (Hanford, WA; Savannah River, SC; Oak Ridge, TN)
Early-stage energy innovators; 129+ startup companies spawned; $10B+ in private follow-on investment