President’s FY 2027 Budget Request for the Department of Energy

The President’s FY 2027 budget proposes a significant realignment of priorities within the U.S. Department of Energy (DOE), emphasizing national security, domestic energy production, and critical materials while reducing or eliminating several civilian energy and research programs.  

The request totals $53.9 billion in discretionary funding, an overall increase of $4.8 billion. This topline growth; however, is largely driven by defense-related investments, as non-defense DOE programs are reduced by $2.7 billion, reflecting a shift away from prior clean energy and demonstration initiatives. While DOE funding increases overall, the FY27 request reflects a clear redistribution of resources. The National Nuclear Security Administration (NNSA) receives $32.8 billion, a $3.6 billion increase, while the remainer of DOE programs total $21.1 billion, representing an 11% reduction.  

Recissions and Program Eliminations 

A central component of the FY27 President’s Budget Request is the proposed cancellation of $15.2 billion in funding previously provided through the 2022 Infrastructure Investment and Jobs Act (IIJA). These recissions target a range of energy-related initiatives, including clean energy deployment, carbon capture technologies, and grid-scale infrastructure. The Administration frames these reductions as a move away from federally supported energy transitions and toward domestically sources, market-driven energy systems. 

In parallel, the budget eliminates or restructures several DOE program offices. Most notably, the Energy Efficiency and Renewable Energy (EERE) Office is abolished, with its activities consolidated into a newly established Office of Critical Minerals and Energy Innovation, funded at $1.1 billion. This reorganization shifts DOE’s focus toward supply chain security, advanced manufacturing, and critical materials development. 

Science and Innovation Programs 

The FY27 request reduces funding for key research and innovation programs while maintaining targeted investments in select priority areas. The Office of Science is reduced by ~$1.1 billion, with the budget eliminating funding for certain climate-related research while continuing support for high-performance computing, artificial intelligence, quantum information science, and fusion energy. 

Similarly, ARPA-E is reduced by $150 million and refocused on technologies aligned with Administration priorities, including AI, fusion fuels, and critical minerals. Programs associated with emissions reduction and electrification are no longer prioritized under the request. 

Environmental Management and Infrastructure 

Environmental Management funding is proposed at ~$8.2 billion, a $386 million reduction, with resources concentrated on near-term cleanup priorities, including continued progress at sites such as Hanford. Additional targeted investments include $75 million for energy-water security initiatives and $394 million to expand domestic critical minerals production.  

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