Contents

• Introduction and Overview
• Administration Request
• FY2025 Reconciliation
• FY2025 Enacted Appropriations
• FY2026 Budgetary Limits
• Key Funding Issues and Initiatives
• Congressionally Directed Funding
• Recent Supplemental Funding
• Cancellation of IIJA and IRA Appropriations
• Funding Levels and Policies for Water Resources Agencies
• Proposed Reductions for EERE
• Title XVII Loan Guarantees: Proposed Nuclear Funding and Cancellation of Other Lending Authority
• Proposals for Petroleum Reserves
• Proposed Reductions in Office of Science and ARPA-E
• Zero Funding Request for the Office of Clean Energy Demonstrations
• Proposed Increase for NNSA Weapons Activities
• Cleanup of Former Nuclear Sites: Adequacy of Proposed Funding
• Federal Regional Commissions and Authorities: Amending or Expanding Uses of Funding
• Bill Status and Recent Funding History
• Description of Major Energy and Water Programs
• Agency Budget Justifications
• Army Corps of Engineers
• Bureau of Reclamation and Central Utah Project
• Department of Energy
• Energy Efficiency and Renewable Energy
• Electricity Delivery, Cybersecurity, Energy Security, and Energy Reliability
• Nuclear Energy
• Fossil Energy
• Science
• Advanced Research Projects Agency–Energy (ARPA-E)
• Clean Energy Demonstrations
• Loan Programs Office
• Energy Information Administration
• Nuclear Weapons Activities
• Defense Nuclear Nonproliferation
• Cleanup of Former Nuclear Weapons Production and Research Sites
• Power Marketing Administrations
• Independent Agencies
• Appalachian Regional Commission
• Nuclear Regulatory Commission
• Congressional Hearings
• House
• Senate
• Key Policy Staff

Summary

The Energy and Water Development and Related Agencies appropriations (E&W) bill funds civil works activities of the U.S. Army Corps of Engineers (USACE) in the Department of Defense; the Department of the Interior's Bureau of Reclamation (Reclamation) and Central Utah Project (CUP); the Department of Energy (DOE); the Nuclear Regulatory Commission (NRC); the Appalachian Regional Commission (ARC); and several other independent agencies. DOE typically accounts for about 80% of the bill's funding.

Overall Funding Totals

President Donald Trump submitted his initial FY2026 budget request on May 2, 2025, followed by more details in late May and subsequent weeks. The Trump Administration request includes $54.438 billion in discretionary appropriations for energy and water development agencies, a decrease of $6.839 billion (-11%) below the FY2025 enacted amount, excluding emergency appropriations, mandatory appropriations, rescissions, offsets, and adjustments. The Full-Year Continuing Appropriations and Extensions Act, 2025 (P.L. 119-4) was signed by President Trump on March 15, 2025, providing annual appropriations for FY2025 at the FY2024 level for nearly all accounts. The FY2025 budget reconciliation measure (P.L. 119-21) includes rescissions and additional appropriations for several E&W programs. Many E&W accounts are also bolstered by supplemental, emergency, and advance appropriations from other acts. FY2024 energy and water development appropriations were included in Division D of the Consolidated Appropriations Act, 2024, signed into law March 9, 2024 (P.L. 118-42).

Key Issues

Zero Funding Request for Wind, Solar, and Hydrogen R&D. No appropriations are requested in FY2026 for Wind, Solar, and Hydrogen R&D, which received a total of $625 million in FY2024 (with FY2025 amounts unspecified).

Termination of Regional Authorities and Commissions. All regional economic development authorities and commissions would be terminated in FY2026 except for the Appalachian Regional Commission, whose annual appropriation would be reduced from $200 million in FY2025 to $14 million in FY2026 (-93%).

Mandatory Appropriations for Nuclear Weapons Activities. The Administration is requesting $20.074 billion in discretionary appropriations and $4.782 billion in mandatory appropriations for the DOE Weapons Activities account in FY2026, resulting in a total requested increase of $5.563 billion (29%), to $24.856 billion.

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Introduction and Overview

Energy and Water Development and Related Agencies appropriations (E&W) bills typically include funding for civil works activities of the U.S. Army Corps of Engineers (USACE) in the Department of Defense, in Title I; the Department of the Interior's Bureau of Reclamation (Reclamation) and Central Utah Project (CUP), in Title II; the Department of Energy (DOE), in Title III; and a number of independent agencies, including the Nuclear Regulatory Commission (NRC) and the Appalachian Regional Commission (ARC), in Title IV. Figure 1 compares the major components of the E&W appropriations acts from FY2022 through FY2025.

President Donald Trump submitted his initial FY2026 budget request on May 2, 2025, followed by more details in late May and subsequent weeks. The Trump Administration request includes $54.438 billion in discretionary appropriations for energy and water development agencies, a decrease of $6.839 billion (-11%) below the FY2025 enacted total of $61.277 billion (Figure 1), excluding emergency appropriations, mandatory appropriations, rescissions, offsets, and adjustments. The Full-Year Continuing Appropriations and Extensions Act, 2025 (P.L. 119-4) was signed by President Trump on March 15, 2025, providing annual appropriations for FY2025 at the FY2024 level for nearly all accounts (with a net decrease of $98 million, less than 1%).¹ FY2024 energy and water development appropriations were included in Division D of the Consolidated Appropriations Act, 2024, signed into law March 9, 2024 (P.L. 118-42).

Figure 1. Major Components of Energy and Water Development Appropriations Bills, FY2022 Enacted Through FY2026 Request (excluding supplementals)

Sources: FY2026 Administration budget request; P.L. 119-4; S.Rept. 118-205; H.Rept. 118-580; FY2025 Administration budget request; explanatory statement for Consolidated Appropriations Act, 2024; S.Rept. 118-72; H.Rept. 118-126; H.R. 4394; FY2024 Administration budget request. Notes: Enacted amounts do not include supplemental appropriations or adjustments and rescissions. CUP = Central Utah Project Completion Account. Tables and figures are in nominal dollars.

In addition to regular annual appropriations, advance funding for E&W agencies in FY2026 has been appropriated by the Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58). The budget reconciliation measure commonly referred to as the Inflation Reduction Act of 2022 (IRA; P.L. 117-169) included funding for some E&W agencies to remain available through as long as FY2031. For details, see the section "Recent Supplemental Funding."

In the 119^th Congress, the FY2025 budget reconciliation measure signed into law on July 4, 2025 (P.L. 119-21) rescinded unobligated DOE advance funding provided by IRA for specified programs and included supplemental appropriations for Reclamation, DOE defense and loan programs, and the Strategic Petroleum Reserve.

Administration Request

President Donald Trump sent his initial FY2026 "skinny" budget to Congress on May 2, 2025, describing broad budgetary outlines, reductions, additions, and initiatives.² Additional details were included in the FY2026 Budget Appendix that was released on May 30, 2025, by the Office of Management and Budget (OMB).³ Most E&W agencies submitted their detailed budget justifications to Congress in subsequent weeks.⁴

Under the Administration's FY2026 request, DOE discretionary appropriations would decrease by $3.418 billion (-7%), to $46.772 billion. USACE funding would be reduced by $2.040 billion (-23%), to $6.663 billion, and Reclamation and CUP funding would decline by $592 million (-31%), to $1.290 billion. Appropriations for independent agencies in the bill would be reduced by $271 million (-54%), to $231 million, excluding adjustments and offsets.⁵

DOE's major program areas include energy, science, defense, and environmental management. The Trump Administration proposes to reduce FY2026 funding for Energy Efficiency and Renewable Energy (EERE) from $3.460 billion in FY2025 to $888 million in FY2026, a reduction of $2.572 billion (-74%). Within EERE, no appropriations are requested in FY2026 for Wind, Solar, and Hydrogen Research and Development (R&D), which received a total of $625 million in FY2024. Zero funding was also requested for two other elements of the EERE appropriations account: the Federal Energy Management Program (FEMP), and the Office of State and Community Energy Programs (SCEP), which provides low-income weatherization and state planning grants.

The budget request proposed no FY2026 appropriations for two other energy programs: the Office of Technology Transitions, which facilitates the commercialization of new energy technologies and received $20 million in FY2025; and the Office of Clean Energy Demonstrations, which had a FY2025 appropriation of $50 million. Funding for the Grid Deployment Office would decline by 75% from FY2025 to $15 million. New funding of $750 million is requested to pay the credit subsidy cost (to cover potential losses to the federal government) for DOE loan guarantees for small modular nuclear reactors.

Funding for DOE's Office of Science in FY2026 is proposed to decrease by $1.148 billion (-14%) to $7.092 billion from the FY2025 enacted amount of $8.240 billion. The Biological and Environmental Research (BER) program would see the largest percentage reduction within the Office of Science, from $900 million in FY2024 to $395 million (-56%) in FY2026. Specifically, no FY2026 funding is requested for BER research in environmental system sciences, atmospheric system research, earth system modeling, or data management. The Atmospheric Radiation Measurement User Facility would be terminated in FY2026. The Administration is requesting $200 million in FY2026 for the Advanced Research Projects Agency–Energy (ARPA-E), which supports research on high-risk but potentially transformative technology. This would be a reduction of $260 million (-57%) for ARPA-E from $460 million enacted for FY2025.

Funding for the National Nuclear Security Administration (NNSA), a semiautonomous DOE agency responsible for nuclear warheads, nuclear weapons nonproliferation, and naval reactor R&D, is proposed to increase by $5.907 billion (24%) over the FY2025 enacted amount of $24.135 billion. The NNSA request for FY2026 includes $4.782 billion in mandatory funding to be provided through the congressional budget reconciliation process. The FY2025 budget reconciliation measure (P.L. 119-21) appropriated $3.885 billion for NNSA for FY2025, to remain available through FY2029.

Environmental Management (waste management and cleanup) would decrease by $389 million (-5%) under the Administration request, from $8.482 billion in FY2025 to $8.093 billion in FY2026. Environmental Management funding at DOE's largest cleanup site, the Hanford Site in Washington state, would remain nearly constant; reductions would be spread among the other cleanup locations around the country.

Among the independent agencies in the E&W bill, funding for six federal regional commissions and authorities (FRCAs) would be eliminated under the President's FY2026 request. FRCAs use appropriations to provide economic development and energy reliability and security grants in their respective regions. Slated for defunding are the Delta Regional Authority, Denali Commission, Great Lakes Authority, Northern Border Regional Commission, Southwest Border Regional Commission, and Southeast Crescent Regional Commission. The largest FRCA, the Appalachian Regional Commission, would be reduced from $200 million in FY2025 to $14 million in FY2026 (-93%). NRC, the largest E&W independent agency, would receive $971 million under the FY2026 request, an increase of $27 million (3%) over the FY2025 enacted amount. NRC licenses and regulates nuclear reactors and radioactive materials. NRC's FY2026 funding request would be offset by fees paid by the nuclear industry, estimated at $819 million.

FY2025 Reconciliation

The FY2025 budget reconciliation act, signed by President Trump on July 4, 2025 (P.L. 119-21), rescinds unobligated appropriations in the Inflation Reduction Act (P.L. 117-169) for several DOE programs, including energy loans and loan guarantees, energy efficiency grants, electricity transmission planning grants, and advanced industrial facilities deployment.

The reconciliation act also provided additional mandatory appropriations for several E&W programs. While rescinding previous appropriations for some DOE loan programs, it also expanded the scope of DOE's Energy Infrastructure Reinvestment (Section 1706) loan program and appropriated $1 billion to cover the Section 1706 program's subsidy costs (potential losses), and $750 million for small modular reactor loan guarantees. The reconciliation measure also appropriated $3.885 billion for NNSA weapons activities for FY2025, to remain available through FY2029, and $1 billion for Reclamation for surface water storage and conveyance projects.

FY2025 Enacted Appropriations

The Full-Year Continuing Appropriations and Extensions Act, 2025, was signed by President Trump on March 14, 2025, providing annual appropriations for FY2025 at the FY2024 level for nearly all E&W accounts. The act stated that FY2025 appropriations are subject to "the authority and conditions provided in applicable appropriations Acts for fiscal year 2024," unless otherwise specified.

For DOE, the largest exceptions were an $185 million increase for Weapons Activities, to $19.293 billion, and a $185 million decrease for Defense Nuclear Nonproliferation, to $2.396 billion. The DOE Energy Projects Account, which funded $84 million in Congressionally Directed Spending ("earmarks") in FY2024, was zeroed out for FY2025. The total for Other Defense Activities was increased by $27 million, to $1.107 billion. Those changes reduced total DOE appropriations by a net of $57 million from FY2024, to $50.190 billion.

P.L. 119-4 directed USACE to develop a new work plan to allocate the agency's FY2025 appropriations of $8.703 billion to specific projects rather than follow the explanatory statement for FY2024.⁶ USACE published its work plan for FY2025 appropriations as required.⁷ FY2025 appropriations for Reclamation were reduced by $41 million from the FY2024 level, which reflects a reduction of the same amount as FY2024 Reclamation earmark funding. The reductions for Reclamation and DOE resulted in a total E&W appropriations reduction of $98 million for FY2025, to $61.255 billion (a reduction of less than 1% from FY2024, including rescissions). The act directed DOE and the Department of the Interior to submit FY2025 detailed operating plans to the House and Senate Appropriations Committees. Reclamation published its operating plan, which included allocations to its various projects.⁸

FY2026 Budgetary Limits

Congressional consideration of the annual Energy and Water Development appropriations bill may be affected by certain procedural and statutory budget enforcement requirements. These consist primarily of procedural limits on discretionary spending (the total spending provided in annual appropriations acts) established in a budget resolution or through some other means, and allocations of this amount that applied to spending under the jurisdiction of each appropriations subcommittee.

For more information on funding ceilings, see CRS Report R46468, A Brief Overview of the Congressional Budget Process, by James V. Saturno.

Key Funding Issues and Initiatives

Several issues have drawn particular attention during congressional consideration of Energy and Water Development appropriations for FY2026. The issues described in this section—listed approximately in the order the affected agencies or provisions appear in Energy and Water Development bills—were selected based on total funding involved, percentage of proposed increases or decreases, amount of congressional interest engendered, and potential impact on broader public policy considerations.

Congressionally Directed Funding

The 119^th Congress, largely continuing the policies of the previous two Congresses, is allowing earmarks for site-specific projects and other activities in the appropriations process. These are referred to as "community project funding" (CPF) in the House and "congressionally directed spending" (CDS) in the Senate. From the 112^th through the 116^th Congresses, moratorium policies largely prohibited earmarks for such projects.⁹ Figure 2 shows enacted CPF/CDS amounts per agency for FY2022 through FY2024. The patterned area of the stacked columns indicates the sum of the top three CPF/CDS items (all under USACE appropriations).

Figure 2. Energy and Water Development CPF/CDS Total Enacted Funding from FY2022 Through FY2024 (in millions of nominal dollars)

Sources: Community Project Funding (CPF)/Congressionally Directed Spending (CDS) tables in explanatory statements accompanying enacted annual appropriations for FY2022 through FY2024. Note: The patterned area of the stacked columns indicates the sum of the top three CPF/CDS items (all under U.S. Army Corps of Engineers appropriations).

Although earmarks were included in the FY2025 E&W bills approved by the House and Senate Appropriations Committees, they were ultimately not enacted. Section 1111 of P.L. 119-4 established that the act did not provide funding in FY2025 for the purposes of the FY2024 earmarks, unless specified otherwise. Some Reclamation and DOE accounts received decreased amounts compared with FY2024 that reflect the earmark funding for those accounts in FY2024. For example, Section 1501 of P.L. 119-4 reduced amounts provided to Reclamation's Water and Related Resources account by $41 million. The section also reduced funding for DOE Energy Projects (CPF/CDS earmarks) to zero, from $84 million appropriated in FY2024. Neither Section 1111 nor Section 1501 affected the availability of funds in FY2024 appropriations acts for such earmarks.

For FY2026, House and Senate appropriations committees provided instructions to Members for requesting CPF and CDS, respectively. The House allowed CPF requests only for certain Reclamation and USACE accounts under E&W,¹⁰ while the Senate allowed CDS requests for those accounts and for "Energy Projects" in DOE.¹¹ The E&W request submission deadline was May 23, 2025, for both chambers. House and Senate Appropriations Committees may specify what CPF and CDS they recommend for funding upon releasing FY2026 E&W bills.

Recent Supplemental Funding

Congress provided supplemental appropriations for USACE and Reclamation from FY2018 through FY2025 for disaster response and mitigation (e.g., drought, flood); study, construction, maintenance, and repair of projects; new authorities that expand the agencies' activities; and COVID-19 precautions, among other purposes.¹² Congress has also provided supplemental appropriations to DOE for clean energy demonstration projects, science facilities and infrastructure, hydrogen production and distribution infrastructure, nuclear weapons nonproliferation, and renewable energy R&D, among other purposes. In addition, in some years, other agencies funded under Energy and Water Appropriations Acts received supplemental funding.

Table 1 details in nominal dollars supplemental appropriations based on the fiscal year when funds are first available (in some cases, FY2024-FY2026). All of these funds are available until expended, except for funds from the IRA, which are available through various years from FY2026 to FY2031; funds for Defense Nuclear Nonproliferation and Salaries and Expenses in P.L. 118-50, which are available through FY2025; and funds in P.L. 119-21, available through various fiscal years from FY2029 to FY2034.¹³

Congress enacted emergency supplemental appropriations for FY2025 in Division B of the American Relief Act, 2025 (P.L. 118-158). The act provided funding to DOE accounts—Strategic Petroleum Reserve, Weapons Activities, Defense Environmental Cleanup—for necessary expenses related to damages caused by natural disasters, including Hurricanes Helene and Milton. USACE and Reclamation received funding for studies and projects.¹⁴

Regarding previous supplemental appropriations, the Trump Administration on January 27, 2025, ordered federal agencies to "temporarily pause all activities related to obligation or disbursement of all Federal financial assistance," including funds for "the green new deal." The Trump Administration said the temporary pause would provide it time to review agency programs and "determine the best uses of the funding for those programs consistent with the law and the President's priorities."¹⁵ As discussed below in the section "Cancellation of IIJA and IRA Appropriations", P.L. 119-21 rescinds IRA unobligated appropriations for a range of DOE programs.

For more details on selected supplemental funding, see the following CRS publications:

• CRS Report R48572, U.S. Army Corps of Engineers: Supplemental Appropriations, by Anna E. Normand and Nicole T. Carter.
• CRS Insight IN11723, Infrastructure Investment and Jobs Act Funding for U.S. Army Corps of Engineers (USACE) Civil Works, by Anna E. Normand and Nicole T. Carter.
• CRS Report R47032, Bureau of Reclamation Provisions in the Infrastructure Investment and Jobs Act (P.L. 117-58), by Charles V. Stern and Anna E. Normand.
• CRS In Focus IF12437, Bureau of Reclamation Funding in the Inflation Reduction Act (P.L. 117-169), by Charles V. Stern and Anna E. Normand.
• CRS Report R47034, Energy and Minerals Provisions in the Infrastructure Investment and Jobs Act (P.L. 117-58), coordinated by Brent D. Yacobucci.
• CRS Report R47262, Inflation Reduction Act of 2022 (IRA): Provisions Related to Climate Change, coordinated by Jonathan L. Ramseur.

Cancellation of IIJA and IRA Appropriations

The Administration request calls for cancellation of $15.247 billion of IIJA advance appropriations for renewable energy, carbon capture from the air, electric vehicles and batteries, "and other costly technologies burdensome to ratepayers and consumers."¹⁶ It would also cancel funding for carbon dioxide sequestration pipelines and related transportation projects under the Carbon Dioxide Transportation Infrastructure Finance and Innovation Program established by IIJA Section 40304.

Separately, P.L. 119-21, the FY2025 budget reconciliation measure, rescinds all unobligated balances of IRA appropriations for these programs:

• State Home Energy Efficiency Training Grants (IRA Section 50123)
• DOE loan programs (IRA Section 50141)
• Tribal energy loan guarantees (IRA Section 50145)
• Electric transmission facility loans (IRA Section 50151)
• Grants for electricity transmission project siting studies (IRA Section 50152)
• Offshore wind electricity transmission planning (IRA Section 50153)
• Grants for advanced industrial facilities deployment (IRA Section 50161)

Unobligated appropriations for DOE Section 1706 loan guarantees provided by IRA Section 40144—for energy infrastructure reinvestment and repurposing—are rescinded by P.L. 119-21.¹⁷ However, the act expands eligibility for Section 1706 loan guarantees to cover a broad spectrum of projects, removing requirements that projects address greenhouse gas emissions. It appropriates $1 billion to cover subsidy costs (potential losses) for the Section 1706 loan guarantees, as well as administrative expenses, to be available through FY2028. The act also repeals the Advanced Technology Vehicles Manufacturing program (IRA Section 50142).¹⁸

Funding Levels and Policies for Water Resources Agencies

The FY2026 budget request for USACE is $2.040 billion lower (-23%) than the enacted FY2025 regular appropriations. As with previous requests and annual appropriations, a large portion of the request would fund maintenance of existing infrastructure, as reflected in the amount proposed for the O&M account ($2.330 billion).¹⁹ The request would fund 15 construction projects, including two under the Mississippi River and Tributaries (MR&T) account. For comparison, USACE allocated FY2025 appropriations in the FY2025 work plan to 28 construction projects under the Construction and MR&T accounts.²⁰

The Administration did not request FY2026 funds for any new construction projects; however, it did request funds for four new studies. The Full-Year Continuing Appropriations and Extensions Act, 2025, did not allow funding for new studies or new construction projects. The request would not utilize funding from the Inland Waterway Trust Fund for inland waterway construction projects and would reduce FY2026 funding from the Harbor Maintenance Trust Fund (HMTF) by $1.071 billion from the amount provided for FY2025 (estimated at $2.771 billion).

The Administration testified that the FY2026 requested HMTF funding is focused on "principal federal responsibilities, which [are] the maintenance and dredging of federal channels."²¹ The request would eliminate funding for USACE loans and loan guarantees for nonfederal water projects under the Water Infrastructure Finance and Innovation Act (WIFIA; P.L. 113-121, Title V, Subtitle C), a reduction of $7 million.²² The FY2026 request also does not include funding for environmental infrastructure assistance or small USACE projects under the various continuing authorities programs.²³ For more details, see CRS In Focus IF13039, U.S. Army Corps of Engineers: FY2026 Appropriations, by Anna E. Normand and Nicole T. Carter.

For FY2026, President Trump requested the lowest funding level for Reclamation in nominal dollars since the FY2021 budget request. The FY2026 budget proposes $1.273 billion in current budget authority for Reclamation, or $587 million less (-32%) than the $1.860 billion Congress provided in the Full-Year Continuing Appropriations and Extensions Act, 2025. The request states that it would eliminate funding certain Reclamation activities that the request says are unrelated to the agency's core missions.²⁴ As such, the FY2026 budget does not request funding for Reclamation's WaterSMART program, which provides funding, mostly in the form of grants, for water conservation and ecosystem restoration, among other purposes.²⁵ The FY2026 request also does not include funding for constructing new federal and nonfederal water storage projects, otherwise known as Water Infrastructure Improvements for the Nation Act (WIIN Act; P.L. 114-322) Section 4007 funding.

In addition to regular annual appropriations, Congress has provided Reclamation with supplemental and mandatory appropriations to augment annual discretionary funding. The FY2025 budget reconciliation measure (P.L. 119-21) appropriated $1 billion for surface water storage and conveyance projects that restore or increase the capacity of existing Reclamation facilities. (For more information on such projects, see CRS Report R47987, Bureau of Reclamation Support for Water Storage Projects, by Charles V. Stern.) The agency also received $4.590 billion from the IRA mostly for drought mitigation.²⁶ The IIJA included $8.300 billion total for various Reclamation activities and projects, to be made available in equal installments from FY2022 to FY2026 (i.e., $1.660 billion for FY2026).²⁷

Proposed Reductions for EERE

The Administration is requesting $888 million for EERE in FY2026, a reduction of $2.572 billion (-74%) from FY2025. The budget would focus on early-stage research and development to "support technologies that promote firm baseload power and other priorities established in relevant Executive Orders, such as bioenergy," according to the request.²⁸

Within EERE, no appropriations are requested in FY2026 for Wind Energy Technologies, Solar Energy Technologies, and Hydrogen and Fuel Cell Technologies, which received a total of $625 million in FY2024 and are unspecified in FY2025. Zero funding was also requested for two other elements of the EERE appropriations account: the Federal Energy Management Program (FEMP) and the Office of State and Community Energy Programs (SCEP), which provides low-income weatherization and state planning grants. In FY2024, FEMP received $57 million and SCEP $493 million.

Steep reductions from FY2024 levels are proposed for Vehicle Technologies (from $450 million to $25 million, -95%), Bioenergy Technologies (from $275 million to $70 million, -75%), and Building Technologies (from $332 million to $20 million, -96%). Geothermal Technologies, aimed at producing baseload power, would be increased from $118 million from FY2024 to $150 million (27%).

Title XVII Loan Guarantees: Proposed Nuclear Funding and Cancellation of Other Lending Authority

For the Title 17 loan guarantee program, the request includes $750 million to pay the credit subsidy cost (to cover potential losses to the federal government) for loan guarantees for small modular nuclear reactors, which DOE describes as "an immediate priority."²⁹ The budget request would provide an additional $30 billion in lending authority for geothermal, hydropower, or bioenergy projects, transmission and distribution projects, advanced fossil energy projects, advanced nuclear energy facilities, refineries, and critical minerals supply projects. It would permanently cancel unobligated balances made available for credit subsidy costs in P.L. 112-10 (estimated at $11 million) and cancel loan authority provided under P.L. 111-8, P.L. 117-328, P.L. 109-289, and P.L. 112-10.³⁰

DOE Section 1703 loan guarantee commitments funded by IRA total approximately $17.7 billion for 15 projects, and Section 1706 loan guarantee commitments funded by IRA total approximately $48.8 billion for 17 projects. As of publication of this report, DOE has not announced further loan guarantee commitments since January 17, 2025.³¹ P.L. 119-21, the FY2025 budget reconciliation measure, rescinds unobligated appropriations for Title XVII programs, but appropriates $1 billion for the Section 1706 program and expands its scope (see section above on "Cancellation of IIJA and IRA Appropriations.")

For the Advanced Technology Vehicles Manufacturing (ATVM) financing program, the request would cancel unobligated balances from credit subsidy appropriations originally provided in P.L. 110-329, as amended. The remaining balance is estimated at $2.29 billion. This program is repealed by P.L. 119-21.

For the Tribal Energy financing program, the request would cancel nearly $11 million of credit subsidy appropriations from prior acts, and nearly $3 million of unobligated balances for administrative expenses made available in P.L. 119-4. Unobligated appropriations for this program are repealed by P.L. 119-21.

For projects under the Carbon Dioxide Transportation Infrastructure Finance and Innovation Act (CIFIA), enacted as part of IIJA, the request proposes to cancel $2.09 billion in unobligated balances.

Proposals for Petroleum Reserves

The Administration is requesting $206 million in FY2026 for operation and management of the Strategic Petroleum Reserve (SPR), a reduction of 3% from the FY2025 enacted amount. The request is supplemented by the FY2025 budget reconciliation measure (P.L. 119-21), which appropriates $171 million for purchasing crude oil for the SPR and $218 million for maintenance through FY2029. It also repeals a previously mandated sale of 7 million barrels of SPR oil that was to occur during 2026 and 2027.

The Administration proposes to close the Northeast Home Heating Oil Reserve (NEHHOR) in FY2026. The 1 million barrels of low-sulfur heating oil in NEHHOR would be sold and leases for storage facilities closed out. For background, see CRS In Focus IF12205, Northeast Home Heating Oil Reserve, by Phillip Brown.

Proposed Reductions in Office of Science and ARPA-E

The Administration proposes to reduce funding for Biological and Environmental Research (BER) in the DOE Office of Science from $900 million in FY2024 to $395 million (-56%) in FY2026. The BER program would be realigned to focus on "transformative science and scientific user facilities to harness the genomic potential found in nature, achieve a predictive understanding of complex systems, and provide the fundamental research leading to solutions for the Nation's energy and national security challenges."³² Previously funded research in environmental system sciences, atmospheric system research, earth system modeling, data management, and the Atmospheric Radiation Measurement User Facility would be eliminated.

Under the FY2026 budget request, ARPA-E would see a 57% reduction in its budget from the FY2025 enacted amount. The request calls for ARPA-E to release up to four new solicitations focused on the discovery of outlier energy technologies that ensure the production of reliable, American-made energy—projects aligned with the Administration's "goal of restoring U.S. energy dominance" through firm, baseload power. It also would support research related to "increasing the energy available to power modern life and unleash American energy innovation to maintain America's global competitiveness."³³

Zero Funding Request for the Office of Clean Energy Demonstrations

The Administration is requesting no appropriations in FY2026 for the DOE Office of Clean Energy Demonstrations (OCED), which funds clean energy and industrial decarbonization demonstration projects for potential commercialization. The office received $50 million in annual appropriations in FY2025, but that amount is overshadowed by $21.456 billion appropriated for OCED by IIJA through FY2026 (see Table 2). In addition, IRA appropriated $5.812 billion for an OCED program on Advanced Industrial Facilities Deployment available from FY2022 through FY2026. As of January 2025, OCED reported that it had awarded support totaling up to $26.8 billion for clean energy demonstration projects.³⁴ The Administration proposes to rescind all unobligated OCED appropriations. As discussed above, P.L. 119-21 rescinded unobligated IRA appropriations for Advanced Industrial Facilities Deployment.³⁵

Proposed Increase for NNSA Weapons Activities

The Administration is requesting $30.042 billion for NNSA in FY2026. This includes $25.26 billion in discretionary appropriations in the E&W bill and $4.782 billion in mandatory funding to be provided through the congressional budget reconciliation process (see below). The total of $30.042 billion would be an increase of $5.907 billion (24%) over the FY2025 enacted amount of $24.135 billion. The $25.260 billion discretionary funding request would be an increase of $1.125 billion (5%) above the FY2025 enacted amount.

The requested $4.782 billion in mandatory spending would be applied entirely to the Weapons Activities account, for a total of $24.856 billion, an increase of $5.563 billion (29%) over the FY2025 enacted level.³⁶ The FY2026 discretionary appropriations request for Weapons Activities totals $20.074 billion, an increase of $781 million (4%) over the FY2025 enacted amount of $19.293 billion.

For Weapons Activities, the requested FY2026 amounts for nuclear warhead modernization programs, which include proposed reconciliation funding, include the following:³⁷

• $16 million for the B61-12 Life Extension Program (LEP), a decrease of $12 million (-42%) from the FY2025 enacted amount. NNSA intends to complete and close out modernization of the B61-12 LEP, which combines four existing variants of the B61 gravity bomb, in FY2026.
• $49 million for the B61-13 variant of the B61 gravity bomb, a 209% increase from the $16 million enacted in FY2025. This B61 variant, intended for strikes on harder and larger-area military targets, is transitioning to full-scale production.³⁸
• The Administration did not request funding for the W88 Alteration 370 program, for which $64 million was enacted in FY2025. NNSA stated that it will complete and close out this program with carryover funding. The W88 warhead is carried on a portion of the D-5 (Trident) submarine-launched ballistic missiles (SLBMs).
• $1.259 billion for production engineering activities of the W80-4 LEP, an increase of $64 million (5%) over the FY2025 enacted amount, intended for the warhead that will be mounted on the Long-Range Standoff (LRSO) cruise missile.³⁹
• $649 million for development engineering activities in the W87-1 warhead modification program, a decrease of $367 million (-36%) from FY2025. The Air Force plans to deploy the W87-1 on the Sentinel intercontinental ballistic missile (ICBM).⁴⁰
• $807 million for the design definition and cost study of the W93 warhead, an increase of $351 million (77%) from the FY2025 enacted amount. The W93 is a warhead intended for deployment on SLBMs.
• $272 million for development engineering of the warhead for the nuclear sea-launched cruise missile (SLCM-N), a $172 million (172%) increase from the FY2025 enacted amount.⁴¹

NNSA is implementing seven warhead programs while also engaging in intensive efforts to recapitalize its production infrastructure. Congress has raised concerns about NNSA's schedule for developing production capacity for plutonium pits (warhead cores), central components of nuclear warheads. NNSA plans to develop pit production capacity at Los Alamos National Laboratory in New Mexico and the Savannah River Site (SRS) in South Carolina. Pit production is included in NNSA's FY2026 budget under Plutonium Modernization, for which NNSA requested $3.795 billion for FY2026, an increase of $1.303 billion (52%) from the FY2025 enacted level.⁴²

The FY2025 budget reconciliation measure (P.L. 119-21) appropriated $3.885 billion for NNSA for FY2025, to remain available through FY2029:

• $200 million for Phase 1 studies;
• $540 million for deferred maintenance and repair;
• $1 billion for construction;
• $400 million for the sea-launched cruise missile nuclear warhead;
• $750 million for modernization of facilities for nuclear warhead primary stages;
• $750 million for modernization of facilities for nuclear warhead secondary stages;
• $120 million for uranium enrichment centrifuge deployment;
• $10 million for spent nuclear fuel reprocessing evaluation; and
• $115 million for artificial intelligence.

Appropriations for NNSA nuclear weapons activities and other defense programs typically closely track the levels authorized in annual National Defense Authorization Acts (NDAAs). For more information, see CRS Report R47657, Energy and Water Development Appropriations for Nuclear Weapons Activities: In Brief, by Anya L. Fink.

Cleanup of Former Nuclear Sites: Adequacy of Proposed Funding

DOE's Office of Environmental Management (EM) is responsible for environmental cleanup and waste management at the department's nuclear facilities. The Administration is requesting $8.093 billion for Environmental Management (EM) in FY2026, a reduction of $389 million (-5%) from the program's FY2025 enacted amount of $8.482 billion.

The EM budget consists of three appropriations accounts. The largest is the Defense Environmental Cleanup account, which finances the cleanup of former nuclear weapons production sites, for which the FY2026 request is $6.956 billion. The Non-Defense Environmental Cleanup account, which funds the cleanup of federal nuclear energy research sites, would receive $322 million. The third component is the Uranium Enrichment Decontamination and Decommissioning Fund (UED&D), for which the FY2026 request is $814 million.

The adequacy of funding for the Office of Environmental Management to attain cleanup milestones across the entire site inventory has been a recurring issue. Cleanup milestones are enforceable measures incorporated into compliance agreements negotiated among DOE, the Environmental Protection Agency, and the states. These milestones establish time frames for the completion of specific actions to satisfy applicable requirements at individual sites.

Federal Regional Commissions and Authorities: Amending or Expanding Uses of Funding

Funding for six federal regional commissions and authorities (FRCAs) would be eliminated under the President's FY2026 request. FRCAs use appropriations for economic development and energy reliability and security grants in their respective regions.

The Full-Year Continuing Appropriations and Extensions Act, 2025, provided funding for seven of the 10 authorized FRCAs: (1) Appalachian Regional Commission (ARC), (2) Delta Regional Authority (DRA), (3) Denali Commission, (4) Great Lakes Authority (GLA), (5) Northern Border Regional Commission (NBRC), (6) Southwest Border Regional Commission (SBRC), and (7) Southeast Crescent Regional Commission (SCRC).⁴³ Six of the seven FRCAs that received FY2025 appropriations are considered active.⁴⁴ The act also provided $5 million for the GLA, which was not active as of June 2025.⁴⁵

The FY2026 budget request would eliminate the DRA, Denali Commission, GLA, NBRC, SBRC, and SCRC. According to the request, "States and local governments are better positioned to fund and address unique regional and geographic economic development challenges."⁴⁶ The DRA, Denali Commission, NBRC, and SCRC released summary documents for their FY2026 congressional budget justifications in May 2025 that include additional details for how they plan to use unobligated balances to conduct orderly closeouts of the agencies.⁴⁷ The request would reduce appropriations for the largest regional authority in the E&W bill, ARC, from $200 million in FY2025 to $14 million in FY2026 (-93%), while continuing to use remaining funding, including advance appropriations provided by the IIJA, for grantmaking.⁴⁸ ARC also released summary documents for its FY2026 congressional budget justification in May 2025 that include additional details for ARC programs and expenses.⁴⁹

FRCAs have been previously proposed for elimination in presidential budgets, but have continued to receive appropriations from Congress. For instance, in May 2017, during the first Trump Administration, the President's FY2018 budget request proposed closeout budgets (i.e., funding amounts that would be provided only for the purpose of closing down the agencies) for most of the FRCAs and proposed "statutory authority to transfer outstanding grant obligations and associated administrative and oversight responsibilities to the Department of Agriculture."⁵⁰ In contrast, the Consolidated Appropriations Act, 2018 (P.L. 115-141) provided a total of $225 million to five of the FRCAs, and the entities continued to operate.⁵¹

Bill Status and Recent Funding History

Table 3 includes budget totals for regular (excluding supplementals) energy and water development appropriations enacted for FY2020 through FY2025 and the FY2026 request.

Description of Major Energy and Water Programs

The annual Energy and Water Development appropriations bill includes four titles: Title I—Corps of Engineers—Civil; Title II—Department of the Interior (Bureau of Reclamation and Central Utah Project); Title III—Department of Energy; and Title IV—Independent Agencies. These are shown in Table 4. Major programs in the bill are described in this section in the approximate order they appear in the bill. Previous appropriations and recent budget requests are shown in the accompanying tables, and additional details about many of these programs are provided in separate CRS reports as indicated. For a discussion of current funding issues related to these programs, see "Key Funding Issues and Initiatives," above. Congressional clients may obtain more detailed information by contacting CRS analysts listed in CRS Report R42638, Appropriations: CRS Experts, by James M. Specht and Justin Murray.

Agency Budget Justifications

Selected FY2026 budget justifications for the largest agencies funded by the annual Energy and Water Development appropriations bill can be found through the links below. The justifications provide detailed descriptions and funding breakouts for programs, projects, and activities under the agencies' jurisdiction.

Title I: U.S. Army Corps of Engineers, Civil Works, https://www.usace.army.mil/missions/civil-works/budget (see Table 5)

Title II (see Table 6)

• Bureau of Reclamation, https://www.usbr.gov/budget
• Central Utah Project, https://www.doi.gov/sites/default/files/documents/2025-06/cupca-2026-greenbook508.pdf

Title III: Department of Energy, https://www.energy.gov/cfo/articles/fy-2026-budget-justification (see Table 7)

Title IV: Independent Agencies (see Table 11)

• Appalachian Regional Commission, https://www.arc.gov/budget-performance-and-policy
• Delta Regional Authority, https://dra.gov/accountability/congressional-budget-justification
• Denali Commission, https://www.denali.gov/finance/congressional-budget-justifications
• Northern Border Regional Commission, https://www.nbrc.gov/content/CJ
• Southeast Crescent Regional Commission, https://scrc.gov/Accountability/congressional-justification
• Nuclear Regulatory Commission, https://www.nrc.gov/reading-rm/doc-collections/nuregs/staff/sr1100
• Defense Nuclear Facilities Safety Board, https://www.dnfsb.gov/about/congressional-budget-requests
• Nuclear Waste Technical Review Board, http://www.nwtrb.gov/about-us/plans

Army Corps of Engineers

USACE is an agency in the Department of Defense with both military and civilian responsibilities. Under its civil works program, which is funded by the Energy and Water Development appropriations bill, USACE plans, builds, operates, and in some cases maintains water resource facilities for coastal and inland navigation, riverine and coastal flood risk reduction, and aquatic ecosystem restoration.⁵²

In recent decades, Congress has generally authorized USACE studies, construction projects, and other activities in omnibus water authorization bills, typically titled as Water Resources Development Acts, prior to funding them through appropriations legislation. Recent Congresses enacted omnibus water resources authorization acts in 2014, 2016, 2018, 2020, 2022, and 2024. The latest WRDA was Title I of the Thomas R. Carper Water Resources Development Act of 2024 (P.L. 118-272). These acts consisted largely of authorizations for new USACE studies and projects, and they altered numerous USACE policies and procedures.⁵³

Unlike for highways and in municipal water infrastructure programs, federal funds for USACE are not distributed to states or projects based on formulas or delivered via competitive grants. Instead, USACE generally is directly involved in planning, designing, and managing the construction of projects that are cost-shared with nonfederal project sponsors.

Policies in the 112^th through the 116^th Congresses limited congressionally directed funding of site-specific projects (i.e., earmarks). Prior to the 112^th Congress, Congress would direct funds to specific projects not in the budget request or increase funds for certain projects. For FY2011-FY2021, Congress appropriated additional funding for categories of USACE work without identifying specific projects. During that period, after congressional enactment of the appropriations legislation and accompanying report language on priorities and other guidance for use of the additional funding, the Administration developed a work plan that reported on (1) the studies and construction projects selected to receive funding for the first time (new starts) and (2) the specific studies and projects receiving additional funds. For FY2022 through FY2024, Congress approved earmarks in specified categories, in addition to providing additional funding for specific categories for USACE to allocate in work plans.⁵⁴ House and Senate rules again allow Members to submit USACE earmark requests in the 119^th Congress (i.e., for FY2025 and FY2026). In FY2025, however, Section 1111 of P.L. 119-4 established that the act did not provide for earmarks. For more information, see CRS Report R46320, U.S. Army Corps of Engineers: Annual Appropriations Process, by Anna E. Normand and Nicole T. Carter.

Table 5 shows USACE appropriations accounts from FY2021 through FY2025, as well as the FY2026 Administration request.

In addition to the regular appropriations for FY2022 through FY2025, USACE received the following supplemental appropriations:

• $5.711 billion in Division B of P.L. 117-43;
• $14.969 billion for FY2022, $1.080 billion for FY2023, and $1.050 billion for FY2024 in the IIJA (P.L. 117-58);
• $1.480 billion in Division N of P.L. 117-328;⁵⁵
• $20 million in the FY2023 continuing resolution (P.L. 117-180); and
• $1.515 billion in the American Relief Act, FY2025 (P.L. 118-158).

For more information on USACE supplemental funding, see CRS Report R48572, U.S. Army Corps of Engineers: Supplemental Appropriations, by Anna E. Normand and Nicole T. Carter.

Bureau of Reclamation and Central Utah Project

Most of the large dams and water diversion structures in the West were built by, or with the assistance of, the Bureau of Reclamation. While USACE built hundreds of flood control and navigation projects, Reclamation's original mission was to develop water supplies, primarily for irrigation to reclaim arid lands in the West for farming and ranching. Reclamation has evolved into an agency that assists in meeting the water demands in the West while working to protect the environment and the public's investment in Reclamation infrastructure. The agency's municipal and industrial water deliveries have more than doubled since 1970.

Today, Reclamation manages hundreds of dams and diversion projects, including more than 300 storage reservoirs, in 17 western states. These projects provide water to approximately 10 million acres of farmland and 31 million people. Reclamation is the largest wholesale supplier of water in the 17 western states and the second-largest hydroelectric power producer in the nation. Reclamation facilities also provide substantial flood control, recreation, and other benefits. Reclamation facility operations are often controversial, particularly for their effect on fish and wildlife species and because of conflicts among competing water users during drought conditions.

As with USACE, the Reclamation budget is made up largely of individual project funding lines, rather than general programs that would not be covered by congressional earmark requirements. Therefore, as with USACE, these Reclamation projects have often been subject to earmark disclosure rules. The moratorium on earmarks through FY2021 restricted congressional steering of money directly toward specific Reclamation projects. For FY2022 through FY2026, the House and Senate rules allowed congressionally directed funding for specific Reclamation projects. For FY2025, Section 1111 of P.L. 119-4 established that the act does not provide for earmarks.

Water and Related Resources, Reclamation's single largest account, encompasses the agency's traditional programs and projects, including construction, operations and maintenance, dam safety, and ecosystem restoration, among others.⁵⁶ Reclamation also typically requests funds in a number of smaller accounts, and has proposed additional accounts in recent years.

Implementation and oversight of CUP, also funded by Title II, is conducted by a separate office within the Department of the Interior.⁵⁷

For more information, see CRS In Focus IF12661, Bureau of Reclamation: FY2025 Budget and Appropriations, by Charles V. Stern; CRS In Focus IF12369, Bureau of Reclamation: FY2024 Budget and Appropriations, by Charles V. Stern; and CRS In Focus IF12127, Bureau of Reclamation: FY2023 Budget and Appropriations, by Charles V. Stern.

Table 6 shows Reclamation and CUP appropriations accounts from FY2021 through FY2025, as well as the FY2026 request.

Reclamation has also received supplemental and mandatory appropriations in recent fiscal years that the agency is still allocating, obligating, and expending. The IIJA provided $1.660 billion in additional funding for each of FY2022 through FY2026 for Reclamation's Water and Related Resources account. (For more information, see CRS Report R47032, Bureau of Reclamation Provisions in the Infrastructure Investment and Jobs Act (P.L. 117-58), by Charles V. Stern and Anna E. Normand.) The IRA also appropriated additional funds in FY2022 for Reclamation:

• $4.000 billion for drought mitigation, available through FY2026;
• $550 million for disadvantaged communities, available through FY2031;
• $25 million for projects to cover water conveyance facilities with solar panels, available through FY2031; and
• $13 million for drought relief actions to mitigate drought impacts for tribes affected by the operation of a Reclamation water project, available through FY2031.

For more information, see CRS In Focus IF12437, Bureau of Reclamation Funding in the Inflation Reduction Act (P.L. 117-169), by Charles V. Stern and Anna E. Normand.

In FY2025, the American Relief Act, 2025 (P.L. 118-158) included $74 million for Reclamation, to remain available until expended. Additionally, the FY2025 budget reconciliation measure (P.L. 119-21) appropriated $1 billion in funding for surface water storage and conveyance projects that restore or increase the capacity of existing Reclamation facilities, available through FY2034.

Department of Energy

The Energy and Water Development appropriations bill has funded nearly all DOE programs since FY2005.⁵⁸ Major DOE activities are authorized under multiple energy statutes and include the following:

• R&D on renewable energy, energy efficiency, nuclear power, fossil energy, and electricity;
• nuclear weapons and nonproliferation;
• general science;
• environmental cleanup;
• energy statistics, projections, and analysis;
• loan programs;
• the Strategic Petroleum Reserve; and
• power marketing administrations.

Table 7 provides recent DOE funding history, including the FY2025 Administration request. Most DOE programs funded by these appropriations accounts are briefly described further below.

As well as the regular annual appropriations shown in Table 7, DOE received additional appropriations from IIJA; the additional amounts for FY2023, FY2024, FY2025, and FY2026 are shown in Table 8. Additional appropriations also became available to DOE from IRA beginning in FY2022, as shown in Table 9. Unobligated balances for certain programs were rescinded by P.L. 119-21. Additional amounts for FY2023 were appropriated by Divisions M and N of P.L. 117-328, as shown in Table 10.

Energy Efficiency and Renewable Energy

DOE's Office of Energy Efficiency and Renewable Energy conducts R&D on transportation energy technology, energy efficiency in buildings and manufacturing processes, and the production of solar, wind, geothermal, and other renewable energy.

The Sustainable Transportation program area includes electric vehicles (EVs), vehicle efficiency, hydrogen and fuel cells, and alternative fuels. Goals of the electric vehicle program include "to reduce EV battery cell cost to achieve EV cost parity with internal combustion engine (ICE) vehicles through expanded R&D focused on lithium metal, solid state, and next generation lithium-ion battery technologies" and to "reduce or eliminate dependence on critical materials such as cobalt, nickel, and graphite."⁵⁹

Renewable power programs focus on electricity generation from solar, wind, water, and geothermal sources. They are also developing concentrated solar technologies to produce high-temperature heat that could replace fossil fuels in steel manufacturing and other industrial processes.

In the energy efficiency program area, the advanced manufacturing program focuses on improving the energy efficiency of manufacturing processes and on the manufacturing of energy-related products. The building technologies program includes R&D on lighting, space conditioning, windows, and control technologies to reduce building energy-use intensity.

The Biden Administration split several EERE programs into separate offices, listed below, and requested separate appropriations accounts for them. The Trump Administration is not requesting funding for these offices in FY2026.

• State and Community Energy Programs, which provides two types of formula grants to states: weatherization grants for improving the energy efficiency of low-income housing units and state energy planning grants.
• Manufacturing and Energy Supply Chains, which provides support for increasing U.S. manufacturing capacity for critical energy technologies and for increasing industrial energy efficiency.
• Federal Energy Management Program, which provides guidance and expertise to federal agencies to meet federal goals on energy use and emissions.

Electricity Delivery, Cybersecurity, Energy Security, and Energy Reliability

The Office of Electricity (OE) "leads the Department of Energy's research, development, and demonstration programs to strengthen and modernize our nation's power grid so that our nation maintains a reliable, resilient, and secure electricity delivery infrastructure," according to the OE website.⁶⁰

OE uses a model of North American energy vulnerabilities for analyzing transmission and other energy infrastructure needs. Other activities include pursuing megawatt-scale electricity storage, integrating electric power system sensing technology, and analyzing electricity-related policy issues. A separate DOE Grid Deployment Office supports modernization of the nation's electricity transmission system and critical generating facilities through planning and financial assistance.

The Office of Cybersecurity, Energy Security, and Emergency Response (CESER) is the federal government's lead entity for energy sector-specific responses to energy security emergencies—whether caused by physical infrastructure problems or by cybersecurity issues. The office conducts R&D on energy infrastructure security technology; provides energy sector security guidelines, training, and technical assistance; and enhances energy sector emergency preparedness and response.

Nuclear Energy

DOE's Office of Nuclear Energy (NE) supports R&D on technologies to improve the efficiency and economic viability of existing U.S. nuclear power plants, development and demonstration of advanced reactor technologies, and R&D on nuclear fuel cycle technologies. NE also supports growth of the U.S. nuclear fuel supply chain, including uranium mining, conversion to uranium hexafluoride, and enrichment.

The Reactor Concepts program area comprises research on advanced reactors, including advanced small modular reactors, and research to enhance the "sustainability" of existing commercial light water reactors. Advanced reactor research focuses on "Generation IV" reactors, as opposed to the existing fleet of commercial light water reactors, which are generally classified as Generations II and III.

The Fuel Cycle Research and Development program includes generic research on nuclear waste management and disposal. One of the program's primary activities is the development of technologies to separate the radioactive constituents of spent fuel for reuse or solidifying into stable waste forms. Other major research areas in the Fuel Cycle R&D program include the development of accident-tolerant fuels for existing commercial reactors, evaluation of fuel cycle options, and development of improved technologies to prevent diversion of nuclear materials for weapons. The program is also developing sources of high-assay low-enriched uranium (HALEU), in which uranium is enriched to between 5% and 20% in the fissile isotope U-235, for potential use in advanced reactors. HALEU would be required for several designs currently receiving cost-shared support by DOE's Advanced Reactor Demonstration Program.

Fossil Energy

The Office of Fossil Energy (FE) has historically supported research related to coal, natural gas, and petroleum,⁶¹ including a major focus area on the development of carbon capture and storage technologies for use with coal-fired power plants. The office also supports operations at the National Energy Technology Laboratory.

The Biden Administration changed the office's name to Fossil Energy and Carbon Management, reflecting a focus on development of carbon capture, utilization, and storage technologies; hydrogen technologies; and options to reduce methane emissions from fossil fuel infrastructure. The Trump Administration's FY2026 request "restores the name and function of the Office of Fossil Energy to its original purpose, which is funding for the research of technologies that could produce an abundance of domestic fossil energy and critical minerals."⁶²

Additionally, FE is involved in a number of programs funded by IIJA, either managing the programs directly or consulting with other DOE offices that have the lead management role. These programs include Regional Direct Air Capture Hubs; Carbon Storage Validation and Testing; Critical Materials Innovation, Efficiency, and Alternatives; and the Carbon Dioxide Transportation Infrastructure Finance and Innovation Act (CIFIA).

FECM's carbon capture research focuses on natural gas-fired power plants and applications outside the power sector, in line with congressional direction provided in the Energy Act of 2020 (Division Z of P.L. 116-260) and other recent laws. FE also conducts research on producing hydrogen from fossil fuels and using hydrogen in the power sector.

For more information, see CRS In Focus IF11861, DOE's Carbon Capture and Storage (CCS) and Carbon Removal Programs, by Ashley J. Lawson.

Authorized in 1975 by the Energy Policy and Conservation Act (P.L. 94-163, as amended; 42 U.S.C. §6201 et seq.), the SPR fulfills two statutory policy objectives: (1) reduce the economic impact of oil supply disruptions, and (2) carry out U.S. obligations under the Agreement on an International Energy Program (IEP)—a multilateral, voluntary agreement subject to international law. Currently, the SPR consists of a government-owned crude oil reserve in Texas and Louisiana.⁶³

Since the SPR was established, various administrations have directed crude oil drawdowns and sales on four occasions in response to emergency oil supply disruptions. During FY2022 and FY2023, emergency SPR authorities addressed anticipated oil supply disruptions following Russia's military invasion of Ukraine. The Biden Administration sold approximately 180 million barrels between March 2022 and January 2023, the largest-ever emergency SPR release.⁶⁴ More frequently, DOE uses SPR authorities to exchange crude oil with refiners and traders following natural disasters (i.e., hurricanes) and other regional supply disruption events. From time to time, DOE also activates exchange authorities to temporarily store crude oil during low-price periods and provide additional supply during high-price periods.⁶⁵

Because of limited utilization in response to emergency oil supply disruptions prior to the 2022 Ukraine war, growing U.S. crude oil production, and rapidly declining net petroleum imports—the basis for determining IEP emergency oil stock obligations—Congress began mandating SPR crude oil sales to pay for other legislative priorities. Between 2015 and 2021, Congress enacted eight laws mandating the sale of 358.6 million barrels of crude oil. Congress cancelled 140 million barrels of these mandated sales in the Consolidated Appropriations Act, 2023, by rescinding some proceeds from emergency sales in FY2022 and FY2023. Additionally, Congress required DOE to sell approximately $1.4 billion of SPR crude oil to pay for an SPR modernization program.⁶⁶ A February 2025 DOE Secretarial Order includes "Refill the Strategic Petroleum Reserve" as a department-level priority.

For additional information, see CRS Insight IN12542, Strategic Petroleum Reserve: Inventory Outlook and Policy Considerations, by Phillip Brown.

Science

The DOE Office of Science conducts basic research in six program areas: advanced scientific computing research, basic energy sciences, biological and environmental research, fusion energy sciences, high-energy physics, and nuclear physics. According to DOE's FY2026 budget justification, the Office of Science "is the nation's largest Federal supporter of basic research in the physical sciences."⁶⁷ DOE has a system of 17 national laboratories, mostly operated by contractors, around the country. Ten of these labs are overseen by the Office of Science.⁶⁸

DOE's Advanced Scientific Computing Research (ASCR) program focuses on developing and maintaining computing and networking capabilities for science and research in computational science, applied mathematics, computer science, networking, and software research, as well as development and operation of multiple large, high-performance computing and networking user facilities. The program plays a key role in the DOE-wide effort to advance the development of artificial intelligence and quantum computing.

Basic Energy Sciences (BES), the largest program area in the Office of Science, focuses on fundamental research to understand, predict, and ultimately control matter and energy at the electronic, atomic, and molecular levels to provide the foundations for novel technologies critical to the DOE missions in energy, economic, and national security.⁶⁹ The program supports research in disciplines such as condensed matter and materials physics, chemistry, geosciences, and aspects of biosciences that establish the foundation of knowledge required to advance artificial intelligence, critical materials, microelectronics, and quantum information science. BES also provides funding for scientific user facilities (e.g., the National Synchrotron Light Source II, and the Linac Coherent Light Source-II) and certain DOE research centers and hubs (e.g., National Quantum Information Science Research Centers and Energy Frontier Research Centers, as well as the Batteries and Energy Storage and Fuels from Sunlight Energy Innovation Hubs).

Biological and Environmental Research (BER) includes genomic science, biotechnology, imaging of biological systems, and related subjects. BER user facilities and centers include four Bioenergy Research Centers, the Environmental Molecular Science Laboratory at Pacific Northwest National Laboratory, and (proposed for termination in FY2026 as noted above) the Atmospheric Radiation Measurement User Facility.⁷⁰

Fusion Energy Sciences (FES) seeks to increase understanding of the behavior of matter at very high temperatures and to establish the science needed to develop a fusion energy source. FES also provides funding for the ITER project, a multinational effort to design and build an experimental fusion reactor.⁷¹

The High Energy Physics (HEP) program conducts research on the fundamental constituents of matter and energy, including studies of dark energy and the search for dark matter. Nuclear Physics supports research on the nature of matter, including its basic constituents and their interactions. A major project in the Nuclear Physics program is the construction of the Electron-Ion Collider at Brookhaven National Laboratory in Upton, NY.

Two significant research efforts in the Office of Science cut across multiple program areas: quantum information science, which aims to use quantum physics to process information, and artificial intelligence and machine learning, which use computerized systems that work and react in ways commonly thought to require intelligence.

For more details, see CRS Report R48307, Federal Research and Development (R&D) Funding: FY2025, coordinated by Laurie Harris.

Advanced Research Projects Agency–Energy (ARPA-E)

ARPA-E is a DOE office authorized by the America COMPETES Act (P.L. 110-69) to support transformational energy technology research projects "in areas where industry by itself is not likely to invest due to technical and financial uncertainty."⁷² According to DOE, since 2009 ARPA-E has provided $4.21 billion in R&D funding to more than 1,700 projects, and 258 projects have attracted more than $14.6 billion in follow-on funding from the private sector.⁷³

Clean Energy Demonstrations

DOE's Office of Clean Energy Demonstrations (OCED) funds cost-shared demonstrations of clean energy technologies, including "clean hydrogen, carbon management, industrial decarbonization, advanced nuclear reactors, long-duration energy storage, demonstration projects in rural or remote areas and on current and former mine land, and more."⁷⁴ OCED's portfolio includes the Advanced Reactor Demonstration Program (transferred from the Office of Nuclear Energy), which is funding two 50% cost-shared advanced reactor demonstrations in Wyoming and Texas. OCED also supports the regional Hydrogen Hubs established by IIJA to establish hydrogen supply chains for industrial, transportation, and other decarbonization uses.

Loan Programs Office

DOE's Loan Programs Office (LPO) administers several authorized programs that provide loan guarantees and direct loans to eligible projects, including the following:

• Title 17 Incentives for Innovative Technologies (clean energy loan guarantees);
• Advanced Technology Vehicles Manufacturing (direct loans);
• Tribal Energy Financing (loan guarantees and direct loans); and
• Carbon Dioxide Transportation Infrastructure Finance and Innovation Act (CIFIA) financing (loan guarantees and direct loans).

As with all federal credit programs, estimated costs to the federal government must be calculated for each approved project and paid for prior to financial closing. Commonly referred to as "credit subsidy costs," estimated costs are typically paid using congressionally appropriated funds, but in some cases can be wholly or partially paid by the project applicant. Most LPO programs have available appropriations for credit subsidy costs from previously enacted legislation.

Title 17 Incentives for Innovative Technologies

Title XVII of the Energy Policy Act of 2005 (P.L. 109-58) established the clean energy loan guarantee program by authorizing DOE to guarantee loans for projects located in the United States that (1) generally avoid or reduce air pollutants or greenhouse gas emissions, and (2) incorporate new or significantly improved technology. As amended at 42 U.S.C. §16511 et seq., the original Title 17 program (Section 1703) includes an expanded list of eligible project categories as well as opportunities to guarantee loans for projects that employ commercially available technologies. The IRA provided $40 billion of new lending authority for Section 1703 and appropriated $3.6 billion for credit subsidy and other program-related costs. The IRA also established a new loan guarantee authority (Section 1706) for "Energy Infrastructure Reinvestment Financing" aimed at reducing emissions from operating energy infrastructure and through investments in energy infrastructure that has ceased operations. Section 1706 lending authority is currently $250.0 billion, and the IRA appropriated $5 billion to pay for credit subsidy and related program costs. IRA lending authorities and appropriations for Sections 1703 and 1706 expire at the end of FY2026. For additional background about Title 17 and IRA amendments to the program, see CRS Insight IN11984, Inflation Reduction Act of 2022 (IRA): Department of Energy Loan Guarantee Programs, by Phillip Brown.

Tribal Energy Financing

Section 2602 of the Energy Policy Act of 1992 (P.L. 102-46), as amended by EPACT05 (P.L. 109-58), authorized DOE to provide loan guarantees for energy tribal energy development, including conventional and clean energy projects. As further amended at 25 U.S.C. §3502(d), borrowers are permitted to receive loan guarantees directly from the U.S. Treasury's Federal Financing Bank. The IRA permanently increased lending authority for this program to $20 billion and appropriated $75 million to carry out the program. However, unobligated balances for the program were rescinded by the FY2025 budget reconciliation measure, P.L. 119-21.

Carbon Dioxide Transportation Infrastructure Finance and Innovation Act (CIFIA) Financing

Section 40304 of IIJA (P.L. 117-58; as amended at 42 U.S.C. §16371) established the CIFIA program to provide grants and federal credit (i.e., direct loans or loan guarantees) for common carrier infrastructure projects or associated equipment that will transport carbon dioxide captured from anthropogenic CO₂ emissions sources or from ambient air. LPO coordinates with DOE's Office of Fossil Energy and Carbon Management (FECM) to execute the CIFIA program. The IIJA appropriated $2.1 billion for the CIFIA program.

Energy Information Administration

The U.S. Energy Information Administration (EIA) was established within DOE as the lead federal agency for collecting, analyzing, and disseminating data on U.S. and world energy supply and consumption. EIA data collection spans the energy system from supply and transport to consumption. All energy sources are included in EIA's data and analysis products, though some (e.g., petroleum) are more detailed than others (e.g., renewables). Recent areas of congressional interest include improvements to EIA's computer models used to project U.S. energy supply and demand over time, and EIA's data collection related to energy consumption in residential and commercial buildings and by data centers.

Nuclear Weapons Activities

In the absence of explosive testing of nuclear weapons, the United States has adopted a science-based program to maintain and sustain confidence in the reliability of the U.S. nuclear stockpile. Congress established the Stockpile Stewardship Program in the National Defense Authorization Act for Fiscal Year 1994 (P.L. 103-160). The goal of the program, as amended by the National Defense Authorization Act for Fiscal Year 2010 (P.L. 111-84, §3111), is to ensure "that the nuclear weapons stockpile is safe, secure, and reliable without the use of underground nuclear weapons testing." The program is operated by NNSA, a semiautonomous agency within DOE established by the National Defense Authorization Act for Fiscal Year 2000 (P.L. 106-65, Title XXXII). NNSA implements the Stockpile Stewardship Program through the activities funded by the Weapons Activities account in the NNSA budget.

Most of NNSA's weapons activities take place at the nuclear weapons complex, which consists of three laboratories (Los Alamos National Laboratory, NM; Lawrence Livermore National Laboratory, CA; and Sandia National Laboratories, NM and CA); four production sites (Kansas City National Security Campus, MO; Pantex Plant, TX; Savannah River Site, SC; and Y-12 National Security Complex, TN); and the Nevada National Security Site (formerly the Nevada Test Site). NNSA manages and sets policy for the weapons complex; contractors to NNSA operate the facilities. Radiological activities at these sites are subject to oversight and recommendations by the independent Defense Nuclear Facilities Safety Board, funded by Title IV of the annual Energy and Water Development appropriations bill.

NNSA's budget has four major Weapons Activities program areas:

• Stockpile Management supports work directly on nuclear weapons. These include life extension programs, warhead surveillance, maintenance, and other activities.
• Production Modernization programs focus on maintaining and expanding the production capabilities for the components of nuclear weapons that are critical to weapons performance. According to NNSA, these include primaries, canned subassemblies, radiation cases, and nonnuclear components.
• Stockpile Research, Technology, and Engineering provides the scientific and technical foundation for science-based stockpile decisions.
• Infrastructure and Operations maintains, operates, and modernizes the NNSA infrastructure. It supports construction of new facilities and funds deferred maintenance in older facilities.

Nuclear Weapons Activities also has several smaller programs, including the following:

• Secure Transportation Asset, providing for safe and secure transport of nuclear weapons, components, and materials;
• Defense Nuclear Security, providing operations, maintenance, and construction funds for protective forces, physical security systems, personnel security, and related activities; and
• Information Technology and Cybersecurity, whose elements include cybersecurity, secure enterprise computing, and Federal Unclassified Information Technology.

For more information, see CRS Report R48194, The U.S. Nuclear Security Enterprise: Background and Possible Issues for Congress, by Anya L. Fink.

Defense Nuclear Nonproliferation

DOE's nonproliferation and national security programs provide technical capabilities to support U.S. efforts to prevent, detect, and counter the spread of nuclear weapons worldwide. These programs are administered by NNSA's Office of Defense Nuclear Nonproliferation (DNN).

• The Materials Management and Minimization program conducts activities to minimize and, where possible, eliminate stockpiles of weapons-useable material around the world, such as conversion of reactors that use highly enriched uranium (useable for weapons) to low-enriched uranium.
• Global Materials Security works to increase the security of vulnerable stockpiles of nuclear material in other countries; promotes the worldwide removal, reduction, and security of radioactive sources (typically used in medical and industrial devices); and improves the capability of other countries to halt illicit trafficking of nuclear materials.
• The Nonproliferation and Arms Control program conducts reviews of nuclear export applications and technology transfer authorizations, implements treaty obligations, and analyzes nonproliferation policies and proposals.
• Defense Nuclear Nonproliferation Research and Development (DNN R&D) advances U.S. capabilities to detect and characterize threats such as foreign nuclear material and weapons production, diversion of special nuclear material, and nuclear detonations.
• The Nonproliferation Construction program disposes of excess U.S. weapons plutonium through a "dilute and dispose" strategy.

This account also includes the Nuclear Counterterrorism and Incident Response Program (NCTIR), which evaluates nuclear and radiological threats and develops emergency preparedness plans, including organizing scientific teams to provide rapid response to nuclear or radiological incidents or accidents worldwide.

For more information, see CRS Report R44413, Energy and Water Development Appropriations for Defense Nuclear Nonproliferation: In Brief, by Mary Beth D. Nikitin.

Cleanup of Former Nuclear Weapons Production and Research Sites

The development and production of nuclear weapons since the beginning of the Manhattan Project during World War II resulted in a waste and contamination legacy managed by DOE that continues to present substantial challenges.⁷⁵ DOE also manages legacy environmental contamination at sites used for nondefense nuclear research. In 1989, DOE established the Office of Environmental Management primarily to consolidate its responsibilities for the cleanup of former nuclear weapons production sites that had been administered under multiple offices.⁷⁶

DOE has identified more than 100 separate sites in over 30 states that historically were involved in the production of nuclear weapons and nuclear energy research for civilian purposes.⁷⁷ Responsibility for long-term stewardship at sites where remediation is complete or remedies are in place is transferred from EM to the separate DOE Office of Legacy Management (LM) and other offices within DOE.⁷⁸ Some of the smaller sites for which DOE initially was responsible were transferred to the Army Corps of Engineers in 1997 under the Formerly Utilized Sites Remedial Action Program (FUSRAP). Once USACE completes the cleanup of a FUSRAP site, it is transferred back to LM, which has its own DOE funding subaccount within Other Defense Activities.

Power Marketing Administrations

DOE's four Power Marketing Administrations (PMAs) were established to sell the power generated by various federal dams. The PMAs operate in 34 states; their assets consist primarily of transmission infrastructure in the form of more than 33,000 miles of high voltage transmission lines and 587 substations. PMA customers are responsible for repaying all power program expenses, plus the interest on capital projects. Since FY2011, power revenues associated with the PMAs have been classified as discretionary offsetting receipts (i.e., receipts that are available for spending by the PMAs), thus the agencies are sometimes noted as having a "net-zero" spending authority. Only the capital expenses of the Western Area Power Administration (WAPA) and Southwestern Power Administration (SWPA) are supported by appropriations from Congress.

Independent Agencies

Independent agencies that receive funding in Title IV of the Energy and Water Development bill include NRC, ARC, and the Defense Nuclear Facilities Safety Board. NRC receives the largest funding of these independent agencies. However, about 85% of NRC's budget is offset by fees, so the agency's net appropriation is about a third of the total funding in Title IV. NRC and ARC are discussed in more detail below. Recent appropriations history, including action on FY2025 funding, for all the Title IV agencies is shown in Table 11. IIJA appropriations for ARC and other regional commissions and authorities are shown in Table 12.

Appalachian Regional Commission

Established in 1965,⁷⁹ ARC is a regional economic development agency. It awards grants and contracts to state and local governments and nonprofit organizations to foster economic opportunities, improve workforce skills, build critical infrastructure, strengthen natural and cultural assets, and improve leadership skills and capacity in the region. ARC's authorizing statute defines the Appalachian Region as including all of West Virginia and parts of Alabama, Georgia, Kentucky, Maryland, Mississippi, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, and Virginia. More than 25 million people currently live in the region as defined.

ARC provides funding to several hundred projects each year, with particular focus on the region's most economically distressed counties. Major areas of infrastructure support include broadband communication systems, transportation, and water and wastewater systems. ARC has supported establishment of the Appalachian Development Highway System (ADHS), a planned 3,000-mile system of highways that connect with the U.S. Interstate Highway System. According to ARC, 91.1% of ADHS is "under construction or open to traffic."⁸⁰

Since FY2016, Congress has directed ARC to set aside funding for the POWER Initiative (Partnerships for Opportunity and Workforce and Economic Revitalization), which assists communities impacted by the decline of the coal industry. The House and Senate Appropriations Committee reports in FY2024, and again in FY2025, directed ARC to allocate $65 million each year to the POWER Initiative. The POWER Initiative funds a variety of economic, workforce, and community development projects to stabilize and stimulate economic activity in affected communities.

For more background on ARC and other regional commissions and authorities, see CRS Report R45997, Federal Regional Commissions and Authorities: Structural Features and Function, by Julie M. Lawhorn, and CRS In Focus IF11140, Federal Regional Commissions and Authorities: Overview of Structure and Activities, by Julie M. Lawhorn. For more background on the POWER Initiative, see CRS Report R46015, The POWER Initiative: Energy Transition as Economic Development, by Julie M. Lawhorn.

Nuclear Regulatory Commission

NRC is an independent agency that establishes and enforces safety and security standards for nuclear power plants and users of nuclear materials. Major appropriations and budget request categories for NRC are shown in Table 13. Nuclear Reactor Safety is NRC's largest program and is responsible for licensing and regulating the 94 power reactors in the United States. NRC is also responsible for licensing and regulating nuclear waste facilities, such as the proposed underground nuclear waste repository at Yucca Mountain, NV (which has received no new appropriations since FY2010).

NRC is required by law to offset its total annual appropriation, excluding specified items, through fees charged to nuclear reactor owners and other holders of NRC licenses. NRC does not retain the fee revenue, but instead sends it to the U.S. Treasury. Budget items excluded from fee recovery include prior-year balances, development of advanced reactor regulations, international activities, and non-site-specific homeland security. As a result, NRC's net appropriation is about 15% of the agency's total budget.

Congressional Hearings

The following hearings were held by the Energy and Water Development subcommittees of the House and Senate Appropriations Committees on the FY2026 budget request. Testimony and opening statements are posted on most of the web pages cited for each hearing, along with webcasts in many cases.

House

• Corps of Engineers and Bureau of Reclamation, May 21, 2025, https://appropriations.house.gov/schedule/hearings/fiscal-year-2026-budget-requests-army-corps-engineers-civil-works-and-bureau
• Department of Energy, May 7, 2025, https://appropriations.house.gov/schedule/hearings/budget-hearing-us-department-energy

Senate

• Corps of Engineers and Bureau of Reclamation, June 11, 2025, https://www.appropriations.senate.gov/hearings/a-review-of-the-presidents-fiscal-year-2026-budget-request-for-the-army-corps-of-engineers-and-the-bureau-of-reclamation
• Department of Energy, May 21, 2025, https://www.appropriations.senate.gov/hearings/a-review-of-the-presidents-fiscal-year-2026-budget-request-for-the-department-of-energy

Key Policy Staff