Energy and Water Development: FY2026 Appropriations

Congressional research reportMar 25, 2026

Ask Donna

What actually matters in this document.

Text

Energy and Water Development:

FY2026 Appropriations

Updated March 25, 2026

Congressional Research Service

https://crsreports.congress.gov

R48599

SUMMARY

R48599

Energy and Water Development:

FY2026 Appropriations

March 25, 2026

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.

Mark Holt

Specialist in Energy Policy

Anna E. Normand

Specialist in Natural

Resources Policy

Overall Funding Totals

President Donald Trump submitted his initial FY2026 budget request on May 2, 2025, followed

by more details in late May 2025 and subsequent weeks. The Trump Administration request included $56.031 billion in

discretionary appropriations for energy and water development agencies, a decrease of $5.233 billion (-9%) below the

FY2025 enacted amount, excluding emergency appropriations, mandatory appropriations, rescissions, offsets, and

adjustments. The House passed its version of the bill (H.R. 4553; H.Rept. 119-213) on September 4, 2025, at 12% above the

Administration request and less than 1% below the FY2025 level. An FY2026 E&W bill (S. 3293) introduced by Senate

E&W Appropriations Subcommittee Chairman Kennedy on December 1, 2025, would have provided nearly level E&W

funding with the FY2025 total, plus transfers of unobligated appropriations. The FY2026 funding measure, with an increase

of 1% over FY2025, was signed January 23, 2026 (P.L. 119-74). Many E&W accounts are also bolstered by supplemental,

emergency, and advance appropriations from other acts. The FY2025 budget reconciliation measure (P.L. 119-21) included

rescissions and additional appropriations for several E&W programs affecting funds available for various years.

Energy and Water Development Appropriations, FY2025 and FY2026 Actions

(in millions of nominal dollars and % change from FY2025 enacted)

FY2025

Enacted

FY2026

Request

(% Change)

FY2026

House

(% Change)

FY2026

S. 3293

(% Change)

U.S. Army Corps of Engineers

8,703

6,663 (-23%)

9,891 (14%)

9,791 (13%)

10,435 (20%)

Bureau of Reclamation/CUP

1,889

1,290 (-32%)

1,895 (<1%)

1,600 (-15%)

1,650 (-13%)

Department of Energy

50,170

47,863 (-5%)

48,510 (-3%)

49,574 (-1%)

49,124 (-2%)

Independent Agencies

502

215 (-57%)

460 (-8%)

531 (6%)

522 (4%)

61,264

56,031 (-9%)

60,756 (<-1%)

61,496 (<1%)

61,731 (1%)

Agency

Total Appropriations

FY2026

Enacted

(% Change)

Sources: P.L. 119-74 and related H.R. 6938 explanatory statement; S. 3293 and draft report (no committee action); H.R. 4553;

H.Rept. 119-213.

Notes: Does not include rescissions, transfers, and scorekeeping adjustments. Enacted amounts do not include supplemental or

reconciliation appropriations. CUP = Central Utah Project Completion Account.

Selected Key Issues

Zero Funding Request for Wind, Solar, and Hydrogen Research and Development. No appropriations were requested

for FY2026 for Wind, Solar, and Hydrogen R&D, which were allocated a total of $108 million in DOE’s FY2025 spending

plan (down from $625 million in FY2024). The House approved $220 million for those activities, while the Senate draft

report would have provided $439 million. The enacted measure provided $690 million.

Continuing Funding of the Federal Regional Commissions and Authorities. All but one of the regional economic

development commissions and authorities would have been terminated by the FY2026 request; the Appalachian Regional

Commission annual appropriation would have been reduced from $200 million in FY2025 to $14 million in FY2026 (-93%).

The enacted measure continued funding for the federal regional commissions and authorities with an increase of 1% from

their FY2025 enacted levels. The act also provided funding for a new regional commission for distressed areas in Idaho,

Montana, Oregon, and Washington. As of the date of this report, the commission had not been authorized.

Congressional Research Service

Energy and Water Development: FY2026 Appropriations

Contents

Introduction and Overview .............................................................................................................. 1

Administration Request ............................................................................................................. 2

House ........................................................................................................................................ 4

Senate-Introduced Bill and Draft Report .................................................................................. 5

FY2026 Enacted Appropriations ............................................................................................... 6

FY2025 Reconciliation ............................................................................................................. 6

FY2025 Enacted Appropriations ............................................................................................... 7

FY2026 Budgetary Limits......................................................................................................... 7

Key Funding Issues and Initiatives.................................................................................................. 8

Congressionally Directed Funding ............................................................................................ 8

Recent Supplemental Funding ................................................................................................ 10

Cancellation and Transfer of IIJA and IRA Appropriations .................................................... 12

Funding Levels and Policies for Water Resources Agencies .................................................. 13

Proposed Reductions for EERE .............................................................................................. 15

Provision to Block Funding for Clean Energy Rule in Federal Buildings .............................. 16

Proposed IIJA Transfers for Nuclear Energy .......................................................................... 16

Consolidated Spent Nuclear Fuel Storage Prohibition and Authorization .............................. 16

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

Lending Authority ................................................................................................................ 17

Proposals for Petroleum Reserves ........................................................................................... 18

Proposed Reductions in Office of Science and ARPA-E ........................................................ 18

Indirect Cost Rates for DOE Awards ...................................................................................... 19

Zero Funding Request for the Office of Clean Energy Demonstrations ................................. 20

Proposed Increase for NNSA Weapons Activities................................................................... 21

Cleanup of Former Nuclear Sites: Adequacy of Proposed Funding ....................................... 24

Department of Energy Reorganization .................................................................................... 25

Federal Regional Commissions and Authorities: Amending or Expanding Uses of

Funding, Funding for New Commission.............................................................................. 25

General Policy Proposals ........................................................................................................ 26

Bill Status and Recent Funding History ........................................................................................ 27

Description of Major Energy and Water Programs ....................................................................... 27

Agency Budget Justifications .................................................................................................. 28

Army Corps of Engineers........................................................................................................ 29

Bureau of Reclamation and Central Utah Project ................................................................... 31

Department of Energy ............................................................................................................. 34

Energy Efficiency and Renewable Energy........................................................................ 38

Electricity Delivery, Cybersecurity, Energy Security, and Energy Reliability.................. 39

Nuclear Energy ................................................................................................................. 40

Fossil Energy .................................................................................................................... 40

Strategic Petroleum Reserve ............................................................................................. 41

Science .............................................................................................................................. 42

Advanced Research Projects Agency–Energy (ARPA-E) ................................................ 44

Clean Energy Demonstrations .......................................................................................... 44

Loan Programs Office ....................................................................................................... 44

Energy Information Administration .................................................................................. 46

Nuclear Weapons Activities .............................................................................................. 46

Congressional Research Service

Energy and Water Development: FY2026 Appropriations

Defense Nuclear Nonproliferation .................................................................................... 47

Cleanup of Former Nuclear Weapons Production and Research Sites ............................. 48

Power Marketing Administrations .................................................................................... 48

Independent Agencies ............................................................................................................. 49

Appalachian Regional Commission .................................................................................. 50

Nuclear Regulatory Commission ...................................................................................... 51

Congressional Hearings ................................................................................................................. 52

House ...................................................................................................................................... 52

Senate ...................................................................................................................................... 52

Key Policy Staff ...................................................................................................................... 52

Figures

Figure 1. Major Components of Energy and Water Development Appropriations Bills,

FY2025 Enacted Through FY2026 Actions ................................................................................. 2

Figure 2. Energy and Water Development CPF/CDS Total Enacted Funding from FY2022

Through FY2026 .......................................................................................................................... 9

Tables

Table 1. Enacted Supplemental Appropriations for Agencies Funded by Energy and Water

Development Acts, FY2018-FY2026 ......................................................................................... 10

Table 2. Additional Appropriations for Clean Energy Demonstrations in the Infrastructure

Investment and Jobs Act (P.L. 117-58) ....................................................................................... 21

Table 3. Status of Energy and Water Development Appropriations, FY2026 ............................... 27

Table 4. Energy and Water Development Appropriations, FY2020-FY2026 Action .................... 27

Table 5. Energy and Water Development Appropriations Summary ............................................. 28

Table 6. Army Corps of Engineers ................................................................................................ 30

Table 7. Bureau of Reclamation and CUP..................................................................................... 32

Table 8. Department of Energy...................................................................................................... 34

Table 9. Additional FY2023-FY2026 Department of Energy Funding Under IIJA ...................... 37

Table 10. Additional Department of Energy Funding Under the IRA ........................................... 37

Table 11. Additional FY2023 Department of Energy Funding in

Divisions M and N of P.L. 117-328 ............................................................................................ 38

Table 12. Independent Agencies Funded by Energy and Water Development

Appropriations............................................................................................................................ 49

Table 13. Additional Appropriations in IIJA for Regional Commissions and Authorities ............ 50

Table 14. Nuclear Regulatory Commission Funding Categories .................................................. 51

Contacts

Author Information........................................................................................................................ 53

Congressional Research Service

Energy and Water Development: FY2026 Appropriations

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 bills for FY2026 and acts for FY2025 and

FY2026.

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 included

$56.031 billion in discretionary appropriations for energy and water development agencies, a

decrease of $5.233 billion (-9%) below the FY2025 enacted total of $61.264 billion (Figure 1),

excluding emergency appropriations, mandatory appropriations, rescissions, offsets, and

adjustments.

The House Appropriations Committee approved its FY2026 E&W bill on July 17, 2025 (H.R.

4553; H.Rept. 119-213). The bill would have provided $61.002 billion for E&W agencies, a

decrease of $263 million (less than 1%) from the FY2025 enacted amount and $6.563 billion

(12%) above the Administration request. The House passed the bill on September 4, 2025,

approving $60.756 billion for E&W agencies. The Senate Appropriations Committee majority

issued a draft report on November 24, 2025, to accompany a FY2026 E&W bill (S. 3293)

introduced December 1, 2025, by Senator Kennedy, chairman of the E&W appropriations

subcommittee. The Senate bill would have provided E&W funding nearly level with the FY2025

enacted total, plus transfers of unobligated appropriations.1

The Energy and Water Development and Related Agencies Appropriations Act, 2026, was signed

into law January 23, 2026, as Division B of the Commerce, Justice, Science; Energy and Water

Development; and Interior and Environment Appropriations Act, 2026 (P.L. 119-74; H.R. 6938).

It provided $61.731 billion for E&W agencies, not including rescissions, supplementals, and

scorekeeping adjustments. That total is about 1% higher than the comparable appropriation for

FY2025.

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 E&W accounts (with a net decrease of $98 million, less than 1%).2 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).

1 Senate Appropriations Committee, “Bill Text: Energy and Water Development Act, 2026,” news release including

link to draft committee report, November 24, 2025, https://www.appropriations.senate.gov/news/majority/bill-textenergy-and-water-development.

2 P.L. 119-4 provided funding levels for appropriations accounts, but generally did not specify amounts for line items

and programs within accounts. Further, Congress did not release explanatory language to accompany the law.

Therefore, funding comparisons with the FY2026 request in the report for some line items, programs, and activities are

presented based on FY2024 enacted levels and agency spending plans. For more on P.L. 119-4, see CRS Report

R48517, Section-by-Section Summary of the Full-Year Continuing Appropriations Act, 2025 (Division A of P.L. 119-4),

coordinated by Drew C. Aherne.

Congressional Research Service

1

Energy and Water Development: FY2026 Appropriations

Figure 1. Major Components of Energy and Water Development Appropriations

Bills, FY2025 Enacted Through FY2026 Actions

(excluding supplementals)

Sources: P.L. 119-74 and H.R. 6938 explanatory statement; S. 3293 and draft report; H.R. 4553; H.Rept. 119213; 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. 11872; H.Rept. 118-126; H.R. 4394; FY2024 Administration budget request.

Notes: The total for S. 3293 does not include $4.170 billion in transfers of previous appropriations. 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 was

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 119th Congress, the FY2025 budget reconciliation measure signed into law on July 4, 2025

(P.L. 119-21), rescinded unobligated DOE advance funding provided by the 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.3 Additional details

were included in the FY2026 Budget Appendix that was released on May 30, 2025, by the Office

3 White House, Office of Management and Budget (OMB), The President’s FY 2026 Discretionary Budget Request,

May 2, 2025, https://www.whitehouse.gov/omb/information-resources/budget/the-presidents-fy-2026-discretionarybudget-request.

Congressional Research Service

2

Energy and Water Development: FY2026 Appropriations

of Management and Budget (OMB).4 Most E&W agencies submitted their detailed budget

justifications to Congress in subsequent weeks.5

Under the Administration’s FY2026 request, DOE discretionary appropriations would have

decreased by $2.307 billion (-5%), to $47.863 billion. USACE funding would have been reduced

by $2.040 billion (-23%), to $6.663 billion, and Reclamation and CUP funding would have

declined by $592 million (-31%), to $1.290 billion. Appropriations for independent agencies in

the bill would have been reduced by $287 million (-57%), to $215 million, excluding adjustments

and offsets.6

DOE’s major program areas include energy, science, defense, and environmental management.

The Trump Administration proposed 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 were requested in FY2026

for Wind, Solar, and Hydrogen Research and Development (R&D), which received a total of

$108 million in DOE’s FY2025 spending plan (down from $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 have declined by 75% from FY2025 to $15 million. New funding of

$750 million was 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 was 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 have seen the largest percentage reduction within

the Office of Science, from $900 million in FY2024 to $395 million (-56%) in FY2026.

Specifically, no FY2026 funding was requested for BER research in environmental system

sciences, atmospheric system research, earth system modeling, or data management. The

Atmospheric Radiation Measurement User Facility would have been terminated in FY2026. The

Administration requested $200 million in FY2026 for the Advanced Research Projects Agency–

Energy (ARPA-E), which supports research on high-risk but potentially transformative

4 OMB, Technical Supplement to the 2026 Budget: Appendix, May 30, 2025, https://www.whitehouse.gov/wp-content/

uploads/2025/05/appendix_fy2026.pdf; Energy and Water Development and Related Agencies Appropriations Act,

2026, appropriations tables, Congressional Record, January 8, 2026, pp. H456-H470, https://www.congress.gov/119/

crec/2026/01/08/172/5/CREC-2026-01-08-bk3.pdf.

5 Unless otherwise noted, appropriations numbers in this report for FY2024 and FY2025 are taken from agency budget

justifications for FY2026, S.Rept. 118-205, H.Rept. 118-580, the explanatory statement for the Consolidated

Appropriations Act, 2024, Division D, in House Appropriations Committee Print, H.R. 4366/Public Law 118-42

[Legislative Text and Explanatory Statement], https://www.govinfo.gov/content/pkg/CPRT-118HPRT56550/pdf/

CPRT-118HPRT56550.pdf, and the explanatory statement for the Commerce, Justice, Science; Energy and Water

Development; and Interior and Environment Appropriations Act, 2026, pp. H330-H470. Some appropriations totals

have changed from previously calculated amounts because of reestimates of revenue offsets and other adjustments.

Where the documents provide different values for appropriations, this report shows the values from the most recently

available document.

6 In the text of this report, dollar numbers are nominal and rounded to the nearest million. Detailed agency

appropriations tables round dollars to the tenths of a million. FY2026 budget request account levels are from the H.R.

6938 explanatory statement, and subaccount request levels are from the budget request.

Congressional Research Service

3

Energy and Water Development: FY2026 Appropriations

technology. This would have been 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, was proposed to increase by $5.907 billion (24%) over the FY2025 enacted amount of

$24.135 billion. The NNSA request for FY2026 included $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 have decreased 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 have remained nearly constant; reductions were to 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 have been 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 were 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 have been reduced from $200 million in FY2025 to

$14 million in FY2026 (-93%). NRC, the largest E&W independent agency, was recommended to

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. As

required by law, NRC’s FY2026 funding was to be offset by fees paid by the nuclear industry,

estimated at $819 million.

House

The House passed its FY2026 E&W bill (H.R. 4553; H.Rept. 119-213) by a vote of 214-213 on

September 4, 2025. The bill’s total appropriation of $60.756 billion was $6.318 billion (12%)

above the request. That excluded $3.562 billion in rescissions and scorekeeping adjustments,

bringing the bill’s total budget score to $57.194 billion, an increase of $2.756 billion (5%) over

the request.

The House Appropriations Committee approved its E&W bill on July 17, 2025. The committee

bill, ordered reported by a vote of 36-27, would have provided $61.002 billion for E&W

agencies, excluding adjustments and offsets.7 IIJA transfers of previous appropriations totaling

$5.104 billion in the House bill (Section 313) are not included in the Appropriations Committee

report tables.

Under the House-passed bill, DOE was to receive $48.510 billion—a reduction of $1.666 billion

(-3%) from the FY2025 enacted amount and $1.739 billion (4%) above the FY2026 request.

USACE would have received increases of $1.188 billion (14%) above FY2025 annual

appropriations and $3.228 billion (48%) above the request. Reclamation and CUP funding was to

7 The House Appropriations Committee report included $3.701 billion in budget scorekeeping adjustments and

rescissions, reducing the bill’s total for budgetary purposes to $57.300 billion. The scorekeeping offsets for the bill as

passed by the House are the sum of the appropriations accounts minus the officially scored (adjusted) total, which is

$106 million less than the committee report’s adjusted total.

Congressional Research Service

4

Energy and Water Development: FY2026 Appropriations

remain nearly the same as in FY2025 (a $6 million increase) but increase by $605 million (47%)

over the request. Appropriations for independent agencies in the bill would have been reduced by

$42 million (8%) from FY2025 but increased by $229 million (99%) over the request.

Funding in the bill for EERE totaled $1.830 billion—a reduction of $1.630 billion (-47%) from

the FY2025 enacted amount but an increase of $942 million (106%) over the Administration’s

FY2026 request. According to the committee report, the bill included $220 million for Wind,

Solar, and Hydrogen Research and Development, which would have been zeroed out by the

request. These areas received a total of $108 million in DOE’s FY2025 spending plan (down from

$625 million in FY2024). In two other elements of the EERE appropriations account that would

have received no funding under the request, the bill would have provided $15 million for the

Federal Energy Management Program (FEMP) and $250 million for the Office of State and

Community Energy Programs (SCEP), which provides low-income weatherization and state

planning grants.

DOE’s Office of Science in FY2026 would have received $8.400 billion under the bill, an

increase of $160 million (2%) over the FY2025 enacted amount and $1.308 billion (18%) over

the Administration’s FY2026 request. According to the committee report, Biological and

Environmental Research, which the Administration proposed to reduce to $395 million (-55%),

would have received $800 million (-8%). The Atmospheric Radiation Measurement User Facility,

which the Administration proposed to terminate in FY2026, was to receive $95 million. The bill

included $350 million for ARPA-E, a decrease of $110 million from FY2025 but an increase of

$150 million (75%) over the request.

NNSA funding included in the bill for FY2026 totaled $25.317 billion, an increase of $1.182

billion (5%) over the FY2025 level and $57 million (less than 1%) above the request. The bill

would have reduced Nuclear Nonproliferation funding by $412 million (-17%) from FY2025 and

$301 million ($-13%) from the request. As noted above, P.L. 119-21 appropriated $3.885 billion

for NNSA for FY2025, to remain available through FY2029. DOE’s Office of Environmental

Management (EM) funding in the bill totaled $7.703 billion, a decrease of $779 million (-9%)

from FY2025 and $389 million (-5%) below the request.

The bill included $460 million for federal regional commissions and authorities (FRCAs) and

independent nuclear agencies. FRCAs would have been reduced by 19% from their FY2025

enacted levels but increased far above the request, which called for shutdown budgets or deep

reductions. For NRC, the committee bill included the same amount as the Administration request.

Senate-Introduced Bill and Draft Report

S. 3293 and the E&W draft report issued by the Senate Appropriations Committee majority

would have increased overall appropriations for E&W agencies to $61.496 billion over the

FY2025 amount, an increase of $219 million (less than 1%). That total does not include the

proposed transfer of $4.170 billion in IIJA unobligated appropriations.8

Under the Senate-introduced bill, DOE would have received $49.574 billion, a decrease of $616

million (-1%) from FY2025 and an increase of $2.802 billion (6%) above the request. In addition,

DOE would have received $3.970 billion in IIJA transfers. Hydrogen, wind, and solar R&D

would have received $439 million, compared with $220 million in the House bill and zero in the

request. The total for energy programs—including hydrogen, wind, and solar R&D—was to

decline by $1.951 billion (11%) from the FY2025 level. Science would have declined by $240

8 The adjustment in the total in the Senate draft report consists of $4.170 billion in IIJA transfers minus $39 million in

rescissions, totaling $4.131 billion.

Congressional Research Service

5

Energy and Water Development: FY2026 Appropriations

million (-3%) from FY2025, to $8.000 billion, and NNSA would have increased by $878 million

(4%) to $25.013 billion.

USACE would have received $9.791 billion, an increase of $1.088 billion (13%) over FY2025

and $3.128 billion (47%) above the request. The Senate bill would have funded four requested

new study starts, and additional new study and construction starts under the Investigations,

Construction, and Mississippi River and Tributaries accounts. Reclamation and CUP would have

received $1.600 billion, a decrease of $289 million (-15%) from FY2025. That total does not

include the Senate bill’s proposed transfer of $200 million of aging infrastructure funding from

the IIJA to fund FY2026 discretionary Water and Related Resources activities.

The Senate-introduced bill proposed $332.6 million for the FRCAs, an increase of 4% from their

FY2025 enacted levels. The bill also proposed funding for a new Northwest Regional

Commission.

FY2026 Enacted Appropriations

The FY2026 E&W enacted measure provided $61.731 billion for E&W agencies, not including

rescissions, supplementals, and scorekeeping adjustments. That total is about 1% higher than the

comparable appropriation for FY2025, 10% higher than the request, 2% higher than the House

bill, and less than 1% higher than the Senate-introduced bill. The enacted total is reduced by

$3.692 billion in scorekeeping adjustments, bringing the budgetary total to $58.039 billion.

DOE received a total of $49.124 billion, a decrease of $1.046 billion (-2%) from FY2025 and an

increase of $1.262 billion (3%) over the request. EERE received appropriations of $1.950 billion

in the enacted measure, plus $1.150 billion of prior-year balances from IIJA. The newly enacted

EERE funding is $1.510 billion (-44%) below the FY2025 amount and $1.062 billion (120%)

above the request. Science received $8.250 billion, nearly the same as in FY2025 and $1.158

million (16%) above the request. NNSA was appropriated $25.404 billion, an increase of $1.269

billion (5%) from FY2025 and $144 million (1%) above the request.

USACE was appropriated $10.435 billion, an increase of $1.733 billion (20%) over FY2025 and

$3.772 billion (57%) above the request. The largest increase was for Construction, which

received $3.170 billion, an increase of $1.315 billion (71%) over FY2025 and $1.612 billion

(103%) above the request. Reclamation and CUP received $1.650 billion, a decrease of $239

million (-13%) from FY2025 and $360 million (28%) above the request.

The enacted measure provided $324 million for the FRCAs, an increase of about 1% from their

FY2025 enacted level of $319 million. The FY2026 appropriations measure also provided

funding for a new Northwest Regional Commission, which—once established—would cover

distressed areas of Idaho, Montana, Oregon, and Washington. As of the date of this report, the

commission had not been authorized.

FY2025 Reconciliation

The FY2025 budget reconciliation measure, signed by President Trump on July 4, 2025 (P.L. 11921), rescinded 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 measure also provided additional mandatory appropriations for several E&W

programs. While rescinding previous appropriations for some DOE loan programs, it expanded

Congressional Research Service

6

Energy and Water Development: FY2026 Appropriations

the scope of DOE’s Energy Infrastructure Reinvestment (Section 1706) loan program and

appropriated $1.000 billion to cover the Section 1706 program’s subsidy costs (potential losses).

The reconciliation measure also appropriated $3.885 billion for NNSA weapons activities for

FY2025, to remain available through FY2029, and $1.000 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 a $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 work plan to allocate the agency’s FY2025

appropriations of $8.703 billion to specific projects rather than follow the explanatory statement

for FY2024.9 USACE published its work plan for FY2025 appropriations as required.10 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.11

FY2026 Budgetary Limits

Congressional consideration of the annual Energy and Water Development appropriations bill

was affected by certain procedural and statutory budget enforcement requirements. These

consisted 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.

9 Regular U.S. Army Corps of Engineers (USACE) appropriations for FY2025 were not reduced from the enacted

FY2024 amount. P.L. 119-4 excludes a P.L. 118-42 provision regarding the use of $1.43 billion in prior-year

unobligated and unallocated Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58) Construction funds. Those IIJA

funds were mostly used to fund FY2024 Construction earmarks. In addition, Section 1111 of P.L. 119-4 establishes that

the act does not provide funding for the purposes of the FY2024 earmarks.

10 The FY2025 work plan is available at USACE, “Civil Works Budget and Performance,”

https://www.usace.army.mil/Missions/Civil-Works/Budget/.

11 Reclamation’s FY2025 Operating Plan is available at Reclamation, “Budget,” https://www.usbr.gov/budget/.

Detailed DOE tables for FY2025 are at https://www.energy.gov/sites/default/files/2025-07/doe-fy-2026-budgetapprops-congressional-control-v5.pdf.

Congressional Research Service

7

Energy and Water Development: FY2026 Appropriations

The House Appropriations Committee adopted updated interim subcommittee allocations for

FY2026 under Section 302(b) of the Congressional Budget Act of 1973 (P.L. 93-344) on July 17,

2025. The allocation for the Energy and Water Development Subcommittee was $57.300 billion,

$106 million higher than the amount provided in the FY2026 E&W bill passed by the House,

including budget scorekeeping adjustments.12

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 119th 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 112th through the 116th Congresses, moratorium policies

largely prohibited earmarks for such projects.13 Figure 2 shows enacted CPF/CDS amounts per

agency for FY2022 through FY2024, and FY2026. The patterned area of the stacked columns

indicates the sum of the top three CPF/CDS items (all under USACE appropriations). For

FY2025, P.L. 119-4 did not fund earmarks.14

12 House Appropriations Committee, “Committee Approves Updated FY26 Subcommittee Allocations,” press release,

July 17, 2025, https://appropriations.house.gov/news/press-releases/committee-approves-updated-fy26-subcommitteeallocations.

13 During the moratorium, Congress appropriated funding for USACE and Reclamation above the requested amounts

for categories of work, called additional funding, without identifying specific projects. In the 117th and 118th

Congresses, enacted appropriations included additional funding for USACE and Reclamation, along with community

project funding (CPF) and congressionally directed spending (CDS).

14 Earmarks were included in the reports accompanying FY2025 Energy and Water Development and Related Agencies

appropriations (E&W) bills approved by the House and Senate Appropriations Committees. However, Section 1111 of

P.L. 119-4 established that the act did not provide funding for earmarks. For more information on earmark restrictions

in P.L. 119-4, see CRS Report R48517, Section-by-Section Summary of the Full-Year Continuing Appropriations Act,

2025 (Division A of P.L. 119-4), coordinated by Drew C. Aherne.

Congressional Research Service

8

Energy and Water Development: FY2026 Appropriations

Figure 2. Energy and Water Development CPF/CDS Total Enacted Funding from

FY2022 Through FY2026

(nominal dollars)

Sources: P.L. 119-4 and Community Project Funding (CPF)/Congressionally Directed Spending (CDS) tables in

explanatory statements accompanying enacted annual appropriations for FY2022 through FY2026.

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).

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,15 while the Senate allowed CDS requests for those accounts and for the “Energy Projects”

account, which includes specific projects in DOE applied energy programs such as energy

efficiency, renewables, and fossil fuels.16

The House committee E&W report included 94 CPF items totaling $901 million—90 for USACE

totaling $877 million and 4 for Reclamation totaling $24 million. Construction funding for

USACE projects constituted the largest CPF items for E&W: $213 million for Chickamauga

Lock, TN; $184 million for the Upper Ohio River, PA; and $132 million for Morganza to the

Gulf, LA.

The Senate Committee draft report included 197 CDS items totaling $1.186 billion—144 for

USACE totaling $977 million, 10 for Reclamation totaling $111 million, and 43 for energy

projects totaling $98 million. Construction funding for USACE projects constituted two of the

largest CDS items for E&W: $190 million for Howard A. Hanson Dam, WA, and $55 million for

Pajaro River at Watsonville, CA. The draft report also had a Reclamation CDS of $55 million for

the Navajo-Gallup Water Supply Project. The explanatory statement accompanying H.R. 6938

15 U.S. House Committee on Appropriations, “FY26 Guidance Overview,” https://appropriations.house.gov/fy26-

member-requests/fy26-guidance-overview.

16 U.S. Senate Committee on Appropriations, “General Guidance on Fiscal Year 2026 Appropriations Requests,”

https://www.appropriations.senate.gov/imo/media/doc/fy2026_appropriations_requests_general_guidance.pdf.

Congressional Research Service

9

Energy and Water Development: FY2026 Appropriations

funded 277 E&W CPF/CDS items—219 for USACE totaling $1.827 billion, 13 for Reclamation

totaling $124 million, and 45 for energy projects. As in previous fiscal years, USACE

construction projects were the largest CPF/CDS items. Four of these exceeded $100 million: $213

million for Chickamauga Lock, TN; $190 million for Howard A. Hanson Dam, WA; $184 million

for Upper Ohio River, PA, in Allegheny and Beaver Counties; and $132 million for Morganza to

the Gulf, LA.

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.17 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 FY2034.18

Table 1. Enacted Supplemental Appropriations for Agencies Funded by Energy and

Water Development Acts, FY2018-FY2026

(in millions of nominal dollars)

FY Funds First

Available

Act

Title I:

U.S. Army

Corps of

Engineers

Title II:

Bureau of

Reclamation

and CUP

Title III:

Department

of Energy

Title IV:

Independent

Agencies

FY2018

P.L. 115-123

17,398

—

22

—

FY2019

P.L. 116-20

3,258

16

—

—

FY2020

P.L. 116-136

70

21

128

3

FY2021

—

—

—

—

—

FY2022

P.L. 117-43

5,711

220

43

—

P.L. 117-58

14,969

1,710

18,687

581

P.L. 117-169

—

4,588

35,067

—

17 For CRS water resource products on these acts, see 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; and 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.

18 Sections 50233 and 80004 of P.L. 117-169 appropriations are to remain available through FY2026. Sections 50231

and 50232 of P.L. 117-169 appropriations are to remain available through FY2031.

Congressional Research Service

10

Energy and Water Development: FY2026 Appropriations

FY Funds First

Available

FY2023

FY2024

FY2025

Act

Title I:

U.S. Army

Corps of

Engineers

Title III:

Department

of Energy

Title IV:

Independent

Agencies

P.L. 117-58

1,080

1,660

13,100

200

P.L. 117-180

20

—

—

—

P.L. 117-328

1,480

—

1,945

—

P.L. 117-58

1,050

1,660

10,778

200

P.L. 118-50

—

—

247

—

P.L. 117-58

—

1,660

10,831

200

P.L. 118-158

1,515

74

64

10

1,000

5,274

—

1,660

9,072

200

P.L. 119-21

FY2026

Title II:

Bureau of

Reclamation

and CUP

P.L. 117-58

—

Source: CRS using public laws enacted in FY2018-FY2025, through July 11, 2025.

Notes: Fiscal year shown is when funds are first available. Amounts are shown as initially enacted, excluding any

subsequent transfers or rescissions. All funds are available until expended except for funds from P.L. 117-169,

which are available through various fiscal 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 from

P.L. 119-21, available through various years from FY2029 to FY2034. For FY2025, the American Relief Act (P.L.

118-158) provided $1.510 billion to the U.S. Economic Development Administration (EDA) for disaster

economic recovery, with $10 million of that amount to be transferred to the Delta Regional Authority. P.L. 11921 rescinded certain unobligated advance appropriations provided by P.L. 117-169. CUP = Central Utah Project

Completion Account.

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 its activities, including studies and projects.19

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.”20 The following section, “Cancellation and Transfer of IIJA and IRA

Appropriations,” discusses some of the proposals and actions for FY2026 regarding these

previously provided appropriations.

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.

19 For information on USACE-funded studies, projects, and activities, see USACE, “Disaster Relief Supplemental

Appropriations Act of 2025,” https://www.usace.army.mil/Missions/Civil-Works/Supplemental-Work/DRSAA25/.

20 OMB, “Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs,” January 27, 2025,

https://s3.documentcloud.org/documents/25506186/m-25-13-temporary-pause-to-review-agency-grant-loan-and-otherfinancial-assistance-programs.pdf.

Congressional Research Service

11

Energy and Water Development: FY2026 Appropriations

•

•

•

•

•

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 and Transfer of IIJA and IRA Appropriations

The Administration request called 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.”21 The Administration’s

budget request would have also canceled 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, rescinded 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); and

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—were rescinded by P.L. 119-21.

However, the act expanded 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

repealed the Advanced Technology Vehicles Manufacturing program (IRA Section 50142).

The House E&W bill (Section 313 of H.R. 4553) would have transferred IIJA appropriations

away from three programs in the DOE Office of Clean Energy Demonstrations, as discussed

below in the section “

21 OMB, “Discretionary Funding Changes,” p. 21.

Congressional Research Service

12

Energy and Water Development: FY2026 Appropriations

Zero Funding Request for the Office of Clean Energy Demonstrations.” The transferred funding in

Section 313, totaling $5.1 billion, would have been used by DOE for advanced nuclear reactor

demonstration.

The Senate-introduced E&W bill would have transferred $1.060 billion in unobligated IIJA

appropriations from EERE: $92 million to Nuclear Energy, $92 million to Fossil Energy, $250

million to Science, $2.400 billion for advanced reactors and fuel, and $75 million for Grid

Deployment. The Senate-introduced bill also proposed to transfer $200 million of aging

infrastructure funding from the IIJA to fund FY2026 discretionary Water and Related Resources

activities.

The enacted measure (Section 311) transferred $5.165 billion of unobligated appropriations from

EERE, civil nuclear credits, and carbon capture and removal. The funding is transferred to small

reactor demonstrations and other nuclear programs, grid deployment, other EERE activities, fossil

energy, science, and Title XVI loan guarantees.

Funding Levels and Policies for Water Resources Agencies

The FY2026 budget request for USACE was $2.040 billion lower (-23%) than the enacted

FY2025 regular appropriations of $8.703 billion.22 In contrast, the House-passed H.R. 6938

would have increased USACE funding by $1.188 billion and the Senate-introduced bill by $1.088

billion over FY2025 enacted regular appropriations. The enacted measure provided $10.435

billion to USACE, an increase of $1.733 billion above FY2025 enacted regular appropriations

and $3.772 billion more than the FY2026 budget request. As with previous requests and annual

appropriations, a large portion of the funding was for maintenance of existing infrastructure

through the Operations and Maintenance (O&M) account ($6.013 billion). The Construction

account increased most of the USACE accounts from their FY2025 regular appropriations, for a

total increase of $1.325 billion. The Senate bill also had proposed a new account for

Preconstruction, Engineering, and Design (PED) to fund plans and specifications for projects

prior to construction;23 the enacted measure continued the practice of funding those activities in

the Investigations account.

While the Administration did not request FY2026 funds for any new construction projects, it did

request funds for four new studies. The House bill would have funded two new study starts;24 the

Senate-introduced bill would have funded new study and construction starts under the

Investigations, Construction, and MR&T accounts. The explanatory statement accompanying

H.R. 6938 stated that the agreement includes funding for individual new starts in the

Investigations, Construction, and Mississippi River and Tributaries accounts, including three of

the new study starts requested from the Administration.

In regard to navigation trust funds, the request proposed not utilizing funding from the Inland

Waterway Trust Fund (IWTF) for inland waterway construction projects and would have reduced

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

22 For further information on the FY2026 request for USACE, see the Budget Information section of USACE, “Civil

Works and Budget Performance,” https://www.usace.army.mil/Missions/Civil-Works/Budget/.

23 Senate Energy and Water Development Appropriations bills for FY2024 (S. 2443) and FY2025 (S. 4927) also

proposed a Preconstruction, Engineering, and Design account, but enacted appropriations did not include such an

account.

24 The new study starts recommended by the House committee bill include Lower Big Sioux River, Union County, SD,

and Savannah Harbor Deepening, GA. The Full-Year Continuing Appropriations and Extensions Act, 2025, did not

allow funding for new studies or new construction projects.

Congressional Research Service

13

Energy and Water Development: FY2026 Appropriations

FY2026 requested HMTF funding is focused on “principal federal responsibilities, which [are]

the maintenance and dredging of federal channels.”25 The enacted measure provided $3.535

billion from the HMTF for navigation work. P.L. 119-74 and the H.R. 6938 explanatory text did

not specify an amount of funding from the IWTF.

The request did not include 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), which would have been a reduction of $7 million.26 The enacted measure

provided $2 million to support loans and $5 million for the program’s administrative costs. The

FY2026 request did not include funding for environmental infrastructure (EI) assistance or small

USACE projects under various continuing authorities programs (CAPs).27 The explanatory

statement accompanying H.R. 6938 provided $360 million in Construction funding for EI

assistance and $31 million across seven CAPs.

For Reclamation, President Trump’s FY2026 request is the lowest in nominal dollars since the

FY2021 budget request. The FY2026 budget proposes $1.273 billion in current budget authority

for Reclamation, or $593 million less (-32%) than the $1.866 billion Congress provided in the

Full-Year Continuing Appropriations and Extensions Act, 2025. The House bill would provide

$1.872 billion to Reclamation and the Senate-introduced bill would provide $1.577 billion. The

enacted measure provided $1.627 billion for Reclamation.

The budget request would eliminate funding for certain Reclamation activities that the request

says are unrelated to the agency’s core missions.28 The FY2026 budget did 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.29 The House committee

report recommended $90 million for the WaterSMART program and the Senate draft report

recommended $145 million, while the enacted measure provided $41 million. The FY2026

request also did 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. The Senate-introduced bill also would not have provided this

funding. In contrast, the House committee report recommended $201 million for WIIN Act

Section 4007 funding, and the enacted measure provided $63 million for these projects.

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 $1.000 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

25 U.S. Congress, Senate Appropriations Committee, Energy and Water Development Subcommittee, A Review of the

President’s Fiscal Year 2026 Budget Request for the Army Corps of Engineers and the Bureau of Reclamation,

119th Cong., 1st sess., June 11, 2025, https://www.appropriations.senate.gov/hearings/a-review-of-the-presidents-fiscalyear-2026-budget-request-for-the-army-corps-of-engineers-and-the-bureau-of-reclamation.

26

For more information on USACE’s Water Infrastructure Finance and Innovation Act (WIFIA) program, see CRS

Insight IN12021, Corps Water Infrastructure Financing Program (CWIFP), by Nicole T. Carter.

27 CPF items constituted all EI assistance funding and a portion of continuing authorities program project funding. For

more information on these USACE activities, see CRS Report R47162, Overview of U.S. Army Corps of Engineers

Environmental Infrastructure (EI) Assistance, by Anna E. Normand, and CRS In Focus IF12635, Continuing

Authorities Programs (CAPs) of the U.S. Army Corps of Engineers, by Nicole T. Carter and Anna E. Normand.

28 OMB, “Discretionary Funding Changes,” p. 28.

29 For further information on the FY2026 request for Reclamation, see Department of the Interior (DOI), FY2026, The

Interior Budget in Brief, May 2025, https://www.doi.gov/budget/appropriations/2026/highlights. For more information

on Reclamation WaterSMART, see CRS In Focus IF12414, Bureau of Reclamation WaterSMART Program, by Charles

V. Stern and Anna E. Normand.

Congressional Research Service

14

Energy and Water Development: FY2026 Appropriations

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.30 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).31 As previously

mentioned, the Senate FY2026 introduced bill proposed transferring $200 million of

Reclamation’s aging infrastructure funding provided under the IIJA to fund FY2026 discretionary

Water and Related Resources activities. This proposed transfer was not included in the enacted

measure.

For more details on these agencies’ funding, see the following CRS publications:

•

•

CRS In Focus IF13039, U.S. Army Corps of Engineers: FY2026 Appropriations,

by Anna E. Normand and Nicole T. Carter.

CRS In Focus IF13066, Bureau of Reclamation: FY2026 Budget and

Appropriations, by Charles V. Stern.

Proposed Reductions for EERE

The Administration requested $888 million for EERE in FY2026, a reduction of $2.572 billion (74%) from FY2025. The budget focused 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.32

Within EERE, no appropriations were requested in FY2026 for Wind Energy Technologies, Solar

Energy Technologies, and Hydrogen and Fuel Cell Technologies, which received a total of

$108 million 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 FY2025, FEMP received $43 million and SCEP $432 million.

The Administration requested steep reductions from FY2025 levels for Vehicle Technologies

(from $240 million to $25 million, -90%), Bioenergy Technologies (from $305 million to $70

million, -77%), and Building Technologies (from $148 million to $20 million, -87%). Geothermal

Technologies, aimed at producing steady baseload power, would have been reduced from $488

million in FY2025 to $150 million (-69%).

The House E&W bill, H.R. 4553, would have funded EERE at $1.830 billion, a decrease of

$1.630 billion (-47%) from FY2025 enacted. H.R. 4553 would have reduced Vehicle

Technologies from $240 million to $215 million (-10%), Bioenergy Technologies from $305

million to $146 million (-52%), and Building Technologies from $148 million to $100 million

(-32%), according to the Appropriations Committee report. Geothermal Technologies would have

decreased from $488 million enacted for FY2025 to $125 million (-74%) in FY2026. Hydrogen

and Fuel Cells Technologies would have increased from $37 million enacted for FY2025 to $50

million.

Under the Senate-introduced bill and draft report, EERE would have received $2.277 billion, a

reduction of $1.233 billion (-36%) from the FY2025 amount. That total did not include $1.060

30 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.

31 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.

32 OMB, “Discretionary Funding Changes,” p. 21.

Congressional Research Service

15

Energy and Water Development: FY2026 Appropriations

billion in transfers previously appropriated to other DOE programs by IIJA. Hydrogen, wind, and

solar R&D would have received $439 million, including IIJA transfers. That compares with $220

million in the House bill, zero in the request, and $108 million in FY2025. Up to $75 million of

EERE funding, including $40 million for demonstrations, could have been spent on geothermal

technologies.

The enacted measure provided $1.950 billion for EERE, plus $1.150 billion of prior-year

balances from IIJA. The new EERE appropriations are a decrease of $1.510 billion (-44%) from

the equivalent FY2025 amount. The explanatory statement allocates the IIJA balances among the

various EERE subaccounts, such as Sustainable Transportation and Fuels, Renewable Energy,

Buildings and Industry, and State and Community Energy Programs.

Provision to Block Funding for Clean Energy Rule in Federal

Buildings

The House bill (Section 312) would prohibit E&W funding from being “used to finalize,

administer, implement, or enforce” DOE’s May 2024 rule on “clean energy” in federal buildings.

The May 2024 rule requires “certain new Federal buildings and Federal buildings undergoing

major renovations to be designed to reduce their fossil fuel-generated energy consumption.”33 The

prohibition was not included in the enacted measure.

Proposed IIJA Transfers for Nuclear Energy

The House-passed bill, Senate-introduced bill, and enacted measure included transfers of several

billion dollars of unobligated IIJA appropriations to advanced nuclear reactor demonstrations. For

that purpose, the House bill (Section 313) would have transferred $673 million in IIJA funding

previously appropriated to EERE, $981 million from DOE credits for existing reactors, $1.000

billion from Fossil Energy, $1.500 billion from the Carbon Dioxide Transportation Infrastructure

Finance and Innovation Program Account, and $950 million from OCED, for a total of $5.104

billion.

The Senate-introduced bill (Section 309) would have transferred $2.4 billion of unobligated IIJA

appropriations to advanced reactor demonstrations and advanced nuclear fuel. The transfers were

to come from $900 million in DOE credits for existing reactors and $1.500 billion from carbon

dioxide transportation.

The enacted measure (Section 311) transferred $3.100 billion from various programs in IIJA to

provide funding for up to two advanced small modular reactors that were previously appropriated

a total of $800 million for FY2024-FY2026 by the Consolidated Appropriations Act, 2024 (P.L.

118-42, Division D, Section 311).

Consolidated Spent Nuclear Fuel Storage Prohibition and

Authorization

The House bill (Section 504) would have prohibited any federal funds from being used for

privately owned facilities for consolidated interim storage of spent nuclear fuel without the

formal consent of state and local governments and any affected Indian tribes. Two privately

owned consolidated interim storage facilities, one in New Mexico and one in Texas, have

33 DOE Federal Energy Management Program, “Clean Energy for New Federal Buildings and Major Renovations of

Federal Buildings,” 89 Federal Register 35384, May 1, 2024.

Congressional Research Service

16

Energy and Water Development: FY2026 Appropriations

received NRC licenses over the objections of the two state governments.34 Citing strong state

opposition, the sponsor of the New Mexico project canceled its plans for the waste storage project

in October 2025.35

The Senate-introduced bill (Section 310), as in previous years, would have authorized DOE to

build and operate one or more consolidated interim storage facilities through a consent-based

siting process. Such facilities would require an agreement with the governor of the host state,

each unit of local government with jurisdiction over the site, each affected Indian tribe, and other

entities identified by DOE. The House and Senate provisions were not included in the enacted

measure.

Title XVII Loan Guarantees: Proposed Nuclear Funding and

Cancellation of Other Lending Authority

For the Title 17 loan guarantee program, the request included $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.”36 The budget request

would have provided 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 have

permanently canceled unobligated balances made available for credit subsidy costs in P.L. 112-10

(estimated at $11 million) and canceled loan authority provided under P.L. 111-8, P.L. 117-328,

P.L. 109-289, and P.L. 112-10.37

The House bill included $150 million for small modular reactor subsidy costs ($600 million

below the request) and would not have canceled existing subsidy cost budget authority and

unobligated balances, as requested by the President. The Senate-introduced bill excluded all those

proposals except for administrative costs and offsetting collections, for a net appropriation of

negative $205 million, the same as the enacted E&W measure.

Under the second Trump Administration, the renamed Office of Energy Dominance Financing has

issued Title 17 loans to five projects, totaling $30.664 billion.38 P.L. 119-21, the FY2025 budget

reconciliation measure, rescinded unobligated appropriations for Title 17 programs, but

appropriated $1 billion for the Section 1706 program and expanded its scope (see the section

“Cancellation and Transfer of IIJA and IRA Appropriations”).

For the Advanced Technology Vehicles Manufacturing (ATVM) financing program, the request

would have canceled unobligated balances from credit subsidy appropriations originally provided

34 NRC, “Consolidated Interim Storage Facility (CISF),” https://www.nrc.gov/waste/spent-fuel-storage/cis.html; New

Mexico Governor Michelle Lujan Grisham, letter to President Trump, July 28, 2020, https://www.nrc.gov/docs/

ML2100/ML21008A321.pdf; and Texas Attorney General Ken Paxton, “Attorney General Ken Paxton Works to Stop

Unaccountable Federal Plan to Illegally Build a Nuclear Waste Facility on World’s Most Productive Oil Field,” news

release, March 6, 2025, https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-works-stopunaccountable-federal-plan-illegally-build-nuclear-waste.

35 World Nuclear News, “Holtec Cancels Plans for New Mexico Interim Storage Facility,” October 10, 2025,

https://www.world-nuclear-news.org/articles/holtec-cancels-plans-for-new-mexico-interim-storage-facility.

36 Department of Energy (DOE), FY 2026 Congressional Justification: Budget in Brief, May 2025, p. 53,

https://www.energy.gov/sites/default/files/2025-06/doe-fy-2026-bib-v6.pdf.

37 OMB, Technical Supplement to the 2026 Budget: Appendix, May 30, 2025, p. 304, https://www.whitehouse.gov/wpcontent/uploads/2025/05/appendix_fy2026.pdf.

38 DOE, Office of Energy Dominance Financing, “EDF Projects,” February 25, 2026, https://www.energy.gov/edf/edfprojects.

Congressional Research Service

17

Energy and Water Development: FY2026 Appropriations

in P.L. 110-329, as amended. The remaining balance is estimated at $2.29 billion. The proposed

cancellation was not included in the House-passed bill, the Senate-introduced bill, or the enacted

measure. Limits on ATVM lending authority set by the IRA were repealed by P.L. 119-21.

For the Tribal Energy financing program, the request would have canceled 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. The cancellations were not included in the

House bill, the Senate bill, or the enacted measure. Unobligated appropriations for this program

were repealed by P.L. 119-21.

For projects under DOE’s Carbon Dioxide Transportation Infrastructure Finance and Innovation

Act (CIFIA), enacted as part of the IIJA, the request proposed to cancel $2.09 billion in

unobligated balances. The House and Senate bills and enacted measure included transfers of

$1.500 billion from the CIFIA program account to DOE’s nuclear energy, EERE, fossil energy,

science, and loan guarantee accounts.

Proposals for Petroleum Reserves

The Administration requested $206 million in FY2026 for operation and management of the

Strategic Petroleum Reserve (SPR), a reduction of 3% from the FY2025 enacted amount. The

House bill would have provided $295 million for SPR operation and maintenance, an increase of

$88 million (43%) over the President’s request. The Senate-introduced bill would have provided

$214 million. The enacted measure appropriated $206 million as requested. SPR funding is

supplemented by the FY2025 budget reconciliation measure (P.L. 119-21), which appropriated

$171 million for purchasing crude oil for the SPR and $218 million for maintenance through

FY2029. It also repealed a previously mandated sale of 7 million barrels of SPR oil that was to

occur during 2026 and 2027.

The Administration proposed to close the Northeast Home Heating Oil Reserve (NEHHOR) in

FY2026. The 1 million barrels of low-sulfur heating oil in NEHHOR was to be sold and leases

for storage facilities closed out. The bill passed by the House, the Senate-introduced bill, and the

enacted measure continued funding for the NEHHOR at the FY2025 level for operation and

maintenance. 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 proposed to reduce funding for the Office of Science to $7.092 billion (-14%)

and 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 was to 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.”39 Previously funded research in environmental system sciences, atmospheric system

research, earth system modeling, data management, and the Atmospheric Radiation Measurement

User Facility were to be eliminated.

The Office of Science would have received $8.400 billion under the House bill, an increase of

$160 million (2%) over the FY2025 enacted amount and $1.308 billion (18%) over the

39 DOE, FY 2026 Congressional Justification: Budget in Brief, May 2025, pp. 20-21, https://www.energy.gov/sites/

default/files/2025-06/doe-fy-2026-bib-v6.pdf.

Congressional Research Service

18

Energy and Water Development: FY2026 Appropriations

Administration’s FY2026 request. BER would have received $800 million (-8%) under the House

bill, and the Atmospheric Radiation Measurement User Facility would have received $95 million,

according to the committee report. The Senate-introduced bill would have provided $8.000 billion

for Science, plus $250 million transferred from previously appropriated funding for OCED. The

enacted measure appropriated $8.250 billion.

Under the FY2026 budget request, ARPA-E would have seen a 57% reduction in its budget from

the FY2025 enacted amount. The request called 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 have supported research

related to “increasing the energy available to power modern life and unleash American energy

innovation to maintain America’s global competitiveness.”40 The House bill included ARPA-E

funding of $350 million, a decrease of $110 million (-24%) from FY2025 but an increase of $150

million (75%) over the request. The Senate-introduced bill would have provided $414 million for

ARPA-E, a decrease of $46 million (-10%) from FY2025. The enacted measure appropriated

$350 million, the same as the House amount.

One major difference between the House report and the draft Senate appropriations report for

fusion energy was the U.S. contribution to ITER, an international nuclear fusion research and

development facility located in France.41 The House bill would have provided $225 million, while

the Senate draft report recommended $75 million, which is closer to the DOE FY2026 request of

$77 million.42 The enacted measure included $171 million for ITER.

Indirect Cost Rates for DOE Awards

On April 11, 2025, DOE announced “updated policies, procedures, and general decision-making

criteria for establishing indirect cost rates when awarding grants to IHEs [institutions of higher

education].”43 According to the policy, DOE will no longer use the negotiated indirect cost rate

for grants awarded to IHEs; instead, DOE is setting a standardized 15% indirect cost rate for all

grant awards to IHEs.44 A federal lawsuit filed by several affected IHEs cited previously

negotiated indirect cost rates ranging up to 62%.45 Separately, DOE issued policies on May 8,

2025, that also changed the indirect cost rates DOE would pay to state and local governments,

40 DOE, Detailed Budget Justification, Energy and Water Development Appropriations, Volume 2, Advanced Research

Projects Agency–Energy, 2025, https://www.energy.gov/sites/default/files/2025-06/doe-fy-2026-vol-2-arpa-e.pdf.

41 CRS Report R48362, ITER—An International Nuclear Fusion Research and Development Facility, coordinated by

Todd Kuiken; and CRS Report R48866, Toward Commercial Fusion Energy: Considerations for Congress, by Todd

Kuiken.

42 DOE, FY 2026 Congressional Justification: Science, May 2025, p. 9, https://www.energy.gov/sites/default/files/

2025-07/doe-fy-2026-vol-5.pdf.

43 Indirect costs, also known as facilities and administrative or overhead costs, fund the infrastructure and support

services for R&D but are not easily attributed to a specific project. For additional information on how federal agencies

negotiate indirect cost rates, see CRS Report R48540, Universities and Indirect Costs for Federally Funded Research,

by Marcy E. Gallo and Laurie Harris. DOE, “PF 2025-22 Adjusting Department of Energy Grant Policy for Institutions

of Higher Education (IHE),” April 11, 2025, https://www.energy.gov/management/pf-2025-22-adjusting-departmentenergy-grant-policy-institutions-higher-education-ihe.

44 DOE, “PF 2025-22 Adjusting Department of Energy Grant Policy for Institutions of Higher Education (IHE).”

45 Association of American Universities v. Department of Energy, No. 1:25-cv-10912 (D. Mass. filed April 14, 2025),

https://www.aau.edu/sites/default/files/AAU-Files/Key-Issues/Research-Administration-Regulation/legal-filing-DOE4-14-25.pdf.

Congressional Research Service

19

Energy and Water Development: FY2026 Appropriations

nonprofit organizations, and for-profit organizations.46 The explanatory statement accompanying

the enacted FY2026 appropriations measure (P.L. 119-74; H.R. 6938) addresses DOE indirect

cost rates as follows:

The Committees acknowledge that there is room for improvement in the system used to

identify and recover indirect cost rates under the Uniform Guidance, particularly with

respect to the need for greater transparency into these costs. Various models have been

suggested to achieve these improvements, including the Financial Accountability in

Research (FAIR) model advanced by the Joint Associations Group on Indirect Costs

(JAG), which the Committees believe merit further consideration.47

Zero Funding Request for the Office of Clean Energy

Demonstrations

The Administration requested 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 was overshadowed by $21.456 billion appropriated for OCED by

IIJA through FY2026 (see Table 2). In addition, the 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.48 The Trump Administration proposed to

rescind all unobligated OCED appropriations.

The House E&W bill included transfers of appropriations made by IIJA Division J for three

OCED programs. Section 313 of H.R. 4553 would have transferred $950 million in unobligated

balances of the Carbon Capture Demonstration and Pilot Programs, authorized in IIJA Sections

41004(a) and 41004(b). Section 313 of H.R. 4553 also included a transfer of $673 million

affecting several other programs authorized in IIJA, including the Regional Clean Hydrogen

Hubs (IIJA Section 40314), and appropriated to OCED in Division J. The transferred

appropriations were to be used by DOE for nuclear reactor demonstrations.

The Senate-introduced bill also did not include any new Clean Energy Demonstration funding,

and it would have transferred $4.170 billion of DOE’s IIJA appropriations to other DOE

programs.

The enacted FY2026 appropriations measure provided no funding for OCED. As discussed

above, P.L. 119-21 rescinded unobligated IRA appropriations for Advanced Industrial Facilities

46 DOE, “PF 2025-25 Adjusting Department of Energy Financial Assistance Policy for State and Local Governments’

Financial Assistance Awards,” May 8, 2025, https://www.energy.gov/management/pf-2025-25-adjusting-departmentenergy-financial-assistance-policy-state-and-local; DOE, “PF 2025-26 Adjusting Department of Energy Financial

Assistance Policy for Nonprofit Organizations’ Financial Assistance Awards,” May 8, 2025, https://www.energy.gov/

management/pf-2025-26-adjusting-department-energy-financial-assistance-policy-nonprofit; and DOE, “PF 2025-27

Adjusting Department of Energy Financial Assistance Policy for For-Profit Organizations’ Financial Assistance

Awards,” May 8, 2025, https://www.energy.gov/management/pf-2025-27-adjusting-department-energy-financialassistance-policy-profit-organizations.

47 House of Representatives, Explanatory Statement, Congressional Record, vol. 172, part No. 5 - Book II (January 8,

2026), p. H390, https://www.congress.gov/119/crec/2026/01/08/172/5/CREC-2026-01-08-bk3.pdf.

48 DOE Office of Clean Energy Demonstrations, “Portfolio,” January 2025, https://www.energy.gov/oced/portfolio.

Congressional Research Service

20

Energy and Water Development: FY2026 Appropriations

Deployment.49 On October 2, 2025, DOE announced the termination of $7.56 billion in energy

grants by OCED, EERE, the Grid Deployment Office, MESC, ARPA-E, and FE.50

Table 2. Additional Appropriations for Clean Energy Demonstrations in the

Infrastructure Investment and Jobs Act (P.L. 117-58)

(budget authority in millions of current dollars)

Program

FY2022

FY2023

FY2024

FY2025

FY2026

Energy Storage Demonstration Pilot

Grants Program

88.8

88.8

88.8

88.8

—

355.0

Long-Duration Demonstration Initiative

and Joint Program

37.5

37.5

37.5

37.5

—

150.0

Advanced Reactor Demonstration

Program

677.0

600.0

600.0

600.0

—

2,477.0

Carbon Capture Large-Scale Pilot

Projects

387.0

200.0

200.0

150.0

—

937.0

Carbon Capture Demonstration Projects

937.0

500.0

500.0

600.0

—

2,537.0

Industrial Emission Demonstration

Projects

100.0

100.0

150.0

150.0

—

500.0

Clean Energy Demonstration Program

on Current and Former Mine Land

100.0

100.0

100.0

100.0

100.0

500.0

Regional Clean Hydrogen Hubs

1,600.0

1,600.0

1,600.0

1,600.0

1,600.0

8,000.0

Program Upgrading Our Electric Grid

and Ensuring Reliability and Resiliency

1,000.0

1,000.0

1,000.0

1,000.0

1,000.0

5,000.0

200.0

200.0

200.0

200.0

200.0

1,000.0

5,127.3

4,426.3

4,476.3

4,526.3

2,900.0

21,456.0

153.8

132.8

134.3

135.8

87.0

643.7

Energy Improvement in Rural and

Remote Areas

Total

3% Set-Aside for Program

Administration

Total

Source: P.L. 117-58, Division J.

Note: Not including rescissions and terminations. Appropriations are in addition to other amounts made

available for these purposes, such as from the Inflation Reduction Act (IRA).

Proposed Increase for NNSA Weapons Activities

The Administration requested $30.042 billion for NNSA in FY2026. This included $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 requested total

of $30.042 billion would have been an increase of $5.907 billion (24%) over the FY2025 enacted

discretionary amount of $24.135 billion. The $25.260 billion discretionary funding request would

have been an increase of $1.125 billion (5%) above the FY2025 enacted amount. NNSA funding

included in the House bill for FY2026 totaled $25.317 billion, an increase of $1.182 billion (5%)

over the FY2025 level and $57 million (less than 1%) over the request. The Senate-introduced

bill included $25.013 billion, an increase of $878 million (4%) from the FY2025 level and $247

49 Unobligated balances for this program have not been reported by OMB.

50 DOE, “Energy Department Announces Termination of 223 Projects, Saving over $7.5 Billion,” news release,

October 2, 2025.

Congressional Research Service

21

Energy and Water Development: FY2026 Appropriations

million (less than 1%) below the request. The enacted FY2026 measure appropriated $25.404

billion for NNSA, an increase of $1.269 billion (5%) over the FY2025 level and $144 million

(1%) above the request.

The requested $4.782 billion in mandatory spending would have been 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.51 The FY2026 discretionary appropriations request for Weapons

Activities totaled $20.074 billion, an increase of $781 million (4%) over the FY2025 enacted

amount of $19.293 billion. The House-passed bill included $20.662 billion for Weapons

Activities, and the Senate-introduced bill included $20.074 billion. The enacted FY2026 E&W

measure appropriated $20.378 billion for Weapons Activities, an increase of $1.085 billion (6%)

over FY2025 and $304 million (2%) above the request. As noted above, P.L. 119-21 appropriated

$3.885 billion for NNSA for FY2025, to remain available through FY2029.

For Weapons Activities, the requested FY2026 amounts for nuclear warhead modernization

programs, which include proposed reconciliation funding, include the following:52

•

•

•

•

•

$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. The House committee report,

Senate draft committee report, and the explanatory statement included the same

amount.

$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.53 The House committee report, Senate draft committee report, and

the explanatory statement included the same amount.

The Administration did not request funding for the W88 Alteration 370 program,

for which $64 million was enacted in FY2025. NNSA stated that it would

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). The House committee report did not itemize the program, and the

Senate draft committee report and explanatory statement, as requested, did not

include funding for the program.

$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.54 The House committee report, Senate draft committee report, and the

explanatory statement included the same amount.

$649 million for development engineering activities in the W87-1 warhead

modification program, a decrease of $367 million (-36%) from FY2025. The

51 DOE, FY2026 Congressional Justification: Budget in Brief, May 2025, p. 24, https://www.energy.gov/sites/default/

files/2025-06/doe-fy-2026-bib-v6.pdf; and OMB, Technical Supplement to the FY2026 Budget: Appendix, May 30,

2025, p. 275, https://www.whitehouse.gov/wp-content/uploads/2025/05/appendix_fy2026.pdf.

52 DOE, FY2026 Detailed Budget Justification—Energy and Water Development Appropriations, Volume 1, National

Nuclear Security Administration, Weapons Activities, pp. 16 and 20, https://www.energy.gov/sites/default/files/202506/doe-fy-2026-vol-1-wa.pdf.

53 For more information, see CRS In Focus IF10519, Defense Primer: Strategic Nuclear Forces, by Anya L. Fink.

54 For more information, see CRS In Focus IF12945, U.S. Strategic Bombers, by Jennifer DiMascio and Anya L. Fink.

Congressional Research Service

22

Energy and Water Development: FY2026 Appropriations

•

•

Air Force plans to deploy the W87-1 on the Sentinel intercontinental ballistic

missile (ICBM).55 The House committee report, Senate draft committee report,

and the explanatory statement included the same amount.

$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. The House committee report

recommended the same amount, which was provided by the explanatory

statement. The Senate draft committee report recommended $782 million.

$272 million for development engineering of the warhead (W80-X) for the

nuclear sea-launched cruise missile (SLCM-N), a $172 million (172%) increase

from the FY2025 enacted amount.56 This amount appears to include mandatory

funding in the FY2025 budget reconciliation measure (P.L. 119-21), as noted

below. The House committee report stated that the committee recommended

more funding than requested for SLCM-N, but the report did not include an

amount for the program in the funding table.57 The Senate draft committee report

and the explanatory statement included $186 million.

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 of $2.491 billion.58 The House committee report recommended $2.833 billion. The

Senate draft committee report recommended $2.520 billion. The explanatory statement included

$2.633 billion, an increase of $142 million (6%) above the FY2025 amount.

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

55 For more information, see CRS In Focus IF11681, Defense Primer: LGM-35A Sentinel Intercontinental Ballistic

Missile, by Anya L. Fink.

56 For more information, see CRS In Focus IF12084, Nuclear-Armed Sea-Launched Cruise Missile (SLCM-N), by Anya

L. Fink.

57 See pp. 158 and 4 in the report.

58 DOE, FY2026 Detailed Budget Justification—Energy and Water Development Appropriations, Volume 1, National

Nuclear Security Administration, Weapons Activities, p. 16, https://www.energy.gov/sites/default/files/2025-06/doe-fy2026-vol-1-wa.pdf.

Congressional Research Service

23

Energy and Water Development: FY2026 Appropriations

•

$115 million for artificial intelligence.

Appropriations for NNSA nuclear weapons activities and other defense programs typically align

with the amounts authorized in annual National Defense Authorization Acts (NDAAs). See

Division C of H.R. 3838 (H.Rept. 119-231), S. 2296 (S.Rept. 119-39), and compromise bill (S.

1071; P.L. 119-60) and accompanying explanatory statement.59 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 requested $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. EM funding in the House bill totaled

$7.703 billion, a decrease of $779 million (-9%) from FY2025 and $389 million (-5%) below the

request. The Senate-introduced bill would have provided $8.841 billion for EM, increases of

$1.137 billion over the House bill (15%), $748 million (9%) over the request, and $359 million

(4%) above FY2025. The enacted measure provided $8.562 billion, an increase of $470 million

(6%) over the request and $80 million (1%) above FY2025.

The House bill included no funding for the USACE Formerly Utilized Sites Remedial Action

Program (FUSRAP), for which $200 million was requested, a decrease of $100 million (-33%)

from FY2025. FUSRAP cleans up radioactive sites dating to the early years of the U.S. nuclear

weapons program. The committee report said that USACE “will carry over into fiscal year 2026

significant unobligated funds sufficient to make appropriate progress on all active FUSRAP

sites.”60 The Senate-introduced bill would have provided $100 million, a reduction of $200

million (-67%) from the enacted FY2025 amount. The enacted measure provided $75 million, a

decrease of $225 million (-75%) from the FY2025 level of $300 million.

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 and received an FY2026 appropriation of $7.375 billion. The Non-Defense

Environmental Cleanup account, which funds the cleanup of federal nuclear energy research sites,

received $322 million. The third component is the Uranium Enrichment Decontamination and

Decommissioning Fund (UED&D), which was appropriated $865 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.

59 House Armed Services Committee, FY26 NDAA Resources, FY26 NDAA Joint Explanatory Statement,

https://armedservices.house.gov/uploadedfiles/fy26_ndaa_joint_explanatory_statement.pdf.

60 H.Rept. 119-213, p. 66. The Treasury Department reported unobligated FUSRAP balances of $829 million at the end

of FY2025. Department of the Treasury, Bureau of the Fiscal Service, Combined Statement, https://fiscal.treasury.gov/

reports-statements/combined-statement/current.html.

Congressional Research Service

24

Energy and Water Development: FY2026 Appropriations

Department of Energy Reorganization

DOE reorganized several major offices and management responsibilities within the department on

November 20, 2025.61 The reorganization did not change the names of the appropriations

accounts in the FY2026 bills as passed by the House, introduced in the Senate, or enacted into

law. The DOE changes include the following:

•

•

•

•

•

•

changing the name of EERE to the Office of Critical Minerals and Energy

Innovation, and adding critical minerals and supply chains to its portfolio;

changing the name and portfolio of FECM to the Hydrocarbons and Geothermal

Energy Office;

establishing a new Office of Artificial Intelligence and Quantum;

establishing a new of Office of Fusion;

eliminating OCED and dividing its responsibilities among other offices; and

renaming LPO the Office of Energy Dominance Financing.

Federal Regional Commissions and Authorities: Amending or

Expanding Uses of Funding, Funding for New Commission

Funding for six federal regional commissions and authorities (FRCAs) would have been

eliminated under the President’s FY2026 request. The House rejected the Administration’s

proposed shutdowns of FRCAs. The House bill would have continued funding for FRCAs with a

reduction of 19% from their FY2025 enacted levels. The Committee report directed ARC to

allocate $12 million of total appropriations to fund basic infrastructure in distressed counties in

Central Appalachia that have been impacted by the decline in the coal industry and $8 million to

fund broadband in distressed counties in Central Appalachia.

The Senate-introduced bill also rejected the Administration’s proposed shutdowns of FRCAs. The

Senate bill included funding for the FRCAs with an increase of 4% from their FY2025 enacted

levels. The bill included funding for a new regional commission (the Northwest Regional

Commission), which—once established—would cover distressed areas of Idaho, Oregon, and

Washington

The enacted FY2026 E&W measure continued funding for FRCAs programs and administrative

expenses at 1% over FY2025 enacted levels. The act provided funding for 7 of the 10 authorized

FRCAs and provided $1 million for the Northwest Regional Commission, which was not

authorized as of February 2026.62 The seven FRCAs that are authorized and received funding

include (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

61 DOE, “Energy Department Announces Organizational Realignment to Strengthen Efficiency and Unleash American

Energy,” November 20, 2025, https://www.energy.gov/articles/energy-department-announces-organizationalrealignment-strengthen-efficiency-and-unleash.

62 S. 3293 included funding for a new regional commission (the Northwest Regional Commission), which—once

established—would cover distressed areas of Idaho, Oregon, and Washington. P.L. 119-74 also included funding for

the Northwest Regional Commission and included distressed areas of Montana, as well as distressed areas of Idaho,

Oregon, and Washington. As of the date of this report, the commission has not been authorized.

Congressional Research Service

25

Energy and Water Development: FY2026 Appropriations

Crescent Regional Commission (SCRC).63 Six of the seven authorized FRCAs that received

FY2026 appropriations are considered active.64 The act provided $5 million for the GLA, which

was not active as of February 2026.65

The explanatory statement directed FRCAs to allocate funding to address specific regional

initiatives or types of communities. For instance, the statement directed ARC to allocate $65

million for coal-impacted communities, $10 million to fund broadband in distressed counties in

Central Appalachia, $16 million of total appropriations to fund basic infrastructure in distressed

counties in Central Appalachia that have been impacted by the decline in the coal industry, and up

to $13 million to address substance use disorder. The statement directed ARC and DRA to

continue investing in their local development district programs. It directed the Denali

Commission to support rural Alaska Native Villages with bulk fuel storage needs and directed

NBRC to allocate at least $4 million to support regional economies impacted by the decline of

forest-based industries and almost $2 million for the State Capacity Building Grant Program.66

General Policy Proposals

The House bill included a number of general policy provisions that raised controversy during the

markup process, including the following, which were not enacted:

•

•

•

•

•

•

limiting restrictions on firearms on USACE public lands (Section 108);

prohibiting E&W funds from being used to replace USACE names related to the

Confederate States of America (Section 109);

prohibiting E&W funding for activities related to diversity, equity, and inclusion

and critical race theory (Section 505);

prohibiting discriminatory actions against persons with religious objections to

same-sex marriage (Section 506);

limiting the use of E&W funds for displaying nongovernmental flags (Section

508); and

prohibiting funds for finalizing any rule with an annual economic impact of $100

million or more (Section 509).

63 The other three federal regional commissions and authorities (FRCAs) are the Mid-Atlantic Regional Commission

(MARC), Northern Great Plans Regional Authority (NGPRA), and Southern New England Regional Commission

(SNERC). As of the date of publication, MARC, NGPRA, SNERC, and the Great Lakes Authority (GLA) are not

active, and none of these have a confirmed federal co-chair. For additional information, see CRS Report R45997,

Federal Regional Commissions and Authorities: Structural Features and Function.

64 Each of the six functioning regional commissions and authorities engage in economic development to varying

extents, and they address multiple programmatic activities in their respective service areas. These activities may

include, but are not limited to, basic infrastructure, energy, ecology/environment and natural resources, workforce, and

business development/entrepreneurship. For more information, see CRS In Focus IF11140, Federal Regional

Commissions and Authorities: Overview of Structure and Activities.

65 The presidential nomination and Senate confirmation of a federal co-chair is an essential step for the GLA to start

operations; as of the date of publication, the Senate has not confirmed a federal co-chair for the GLA (a nominee by

President Biden was not confirmed, and President Trump has not submitted a nominee). For more information, see

CRS In Focus IF11744, Federal Regional Commissions and Authorities: Authorization.

66 H.R. 6938 explanatory statement, p. H446, https://www.congress.gov/119/crec/2026/01/08/172/5/CREC-2026-0108-bk3.pdf#page=192.

Congressional Research Service

26

Energy and Water Development: FY2026 Appropriations

Bill Status and Recent Funding History

Table 3 indicates major congressional actions taken during consideration of FY2026 Energy and

Water Development appropriations. (For more details, congressional staff may see the CRS

Appropriations Status Table at http://www.crs.gov/AppropriationsStatusTable/Index.)

Table 3. Status of Energy and Water Development Appropriations, FY2026

Subcommittee

Markup

Final Approval

House

Senate

House

Comm.

House

Passed

Senate

Comm.

Senate

Passed

Conf.

Report

House

Senate

Public

Law

7/14/25

—

7/17/25

9/4/25

—*

—

—

1/8/26

1/15/26

1/23/26

Source: CRS Appropriations Status Table.

Note: *An FY2026 E&W bill (S. 3293) was introduced in the Senate December 1, 2025.

Table 4 includes budget totals for regular (excluding supplementals) energy and water

development appropriations enacted for FY2020 through FY2025 and the FY2026 request.

Table 4. Energy and Water Development Appropriations, FY2020-FY2026 Action

(budget authority in billions of current dollars)

FY2021

FY2022

FY2023

FY2024

FY2025

FY2026

Request

FY2026

House

S. 3293

FY2026

49.5

55.6

59.2

61.4

61.3

56.0

60.8

61.5

61.7

Source: Compiled by CRS from totals provided by congressional budget documents and the FY2026 President’s

Budget Request.

Notes: Figures exclude permanent budget authorities, scorekeeping adjustments, rescissions, and emergency

funding. See Table 1 for emergency funding for these fiscal years. Figures are not adjusted for inflation.

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 5. Major programs in the bill are described in this section in the approximate

order they appear in the bill. Recent appropriations and FY2026 actions 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, also listed at the end of this

report.

Congressional Research Service

27

Energy and Water Development: FY2026 Appropriations

Table 5. Energy and Water Development Appropriations Summary

(budget authority in millions of nominal dollars)

Title

FY2022 FY2023

Approp Approp

FY2024

Approp

FY2025

Approp

FY2026

Request

FY2026

House

S. 3293

FY2026

Approp

Title 1: U.S. Army

Corps of Engineers

8,343

8,310

8,703

8,703

6,663

9,891

9,791

10,435

Title II: CUP and

Reclamation

1,924

1,954

1,923

1,889

1,290

1,895

1,600

1,650

Title III:

Department of

Energy

44,856

48,445

50,247

50,170

47,863

48,510

49,574

49,124

Title IV:

Independent

Agencies

454

494

502

502

215

460

531

522

Subtotal

55,576

59,204

61,375

61,264

56,031

60,756

61,496

61,731

Rescissions,

Transfers, and

Scorekeeping

Adjustments

-2,704

-2,202

-22

-22

-228

-3,562

4,131

-3,692

E&W Total with

Adjustments

52,872

57,002

61,353

61,242

55,803

57,194

65,627

58,039

Sources: H.R. 6938 (P.L. 119-74) and explanatory statement; S. 3293 and draft report; H.R. 4553; H.Rept. 119213; 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; P.L. 117-328

and explanatory statement. Excludes emergency appropriations. Subtotals may include other adjustments.

Columns may not sum to totals because of rounding and adjustments. CUP = Central Utah Project.

Notes: FY2026 House scorekeeping offsets are the sum of the appropriations accounts minus the officially

scored (adjusted) total. The S. 3293 adjusted total includes $4.170 billion in transfers minus $39 million in

rescissions. FY2026 House transfers of $5.104 billion are not included. FY2026 request does not include a

further reduction of $19.674 billion in scorekeeping adjustments. Budget “scorekeeping” refers to

determinations of spending amounts for congressional budget enforcement purposes. These scorekeeping

adjustments may include rescissions and offsetting revenues from various sources.

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/civilworks/budget (see Table 6)

Title II: (see Table 7)

•

•

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 8)

Congressional Research Service

28

Energy and Water Development: FY2026 Appropriations

Title IV: Independent Agencies (see Table 12)

•

•

•

•

•

•

•

Appalachian Regional Commission, https://www.arc.gov/budget-performanceand-policy

Delta Regional Authority, https://dra.gov/accountability/congressional-budgetjustification

Denali Commission, https://www.denali.gov/finance/congressional-budgetjustifications

Southeast Crescent Regional Commission, https://scrc.gov/Accountability/

congressional-justification

Nuclear Regulatory Commission, https://www.nrc.gov/reading-rm/doccollections/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.67

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 (WRDAs), prior to funding them through appropriations legislation. Recent

Congresses enacted omnibus USACE water resources authorization acts in 2014, 2016, 2018,

2020, 2022, and 2024. The latest enacted WRDA was Division A 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.68

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.

During the period when earmarks were limited during the 112th through 116th Congresses, the

procedure was that 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

67 Military responsibilities are funded through the Military Construction, Veterans Affairs, and Related Agencies

appropriations bill.

68 For more information on USACE authorization legislation, see CRS In Focus IF11322, Water Resources

Development Acts: Primer and Action in the 118th Congress, by Nicole T. Carter and Anna E. Normand, and CRS

Report R47946, Process for U.S. Army Corps of Engineers (USACE) Projects, by Nicole T. Carter and Anna E.

Normand.

Congressional Research Service

29

Energy and Water Development: FY2026 Appropriations

in specified categories, in addition to providing additional funding for specific categories for

USACE to allocate in work plans.69 House and Senate rules again allow Members to submit

USACE earmark requests in the 119th 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 6 shows USACE appropriations accounts from FY2022 through FY2026.

Table 6. Army Corps of Engineers

(budget authority in millions of current dollars)

FY2022

Approp

FY2023

Approp

FY2024

Approp

FY2025

Approp

FY2026

Request

FY2026

House

S. 3293

FY2026

Approp

143.0

—

172.5

—

143.0

—

143.0

—

130.0

—

200.0

—

97.5

150.4

151.3

—

Construction

2,492.8

1,808.8

1,854.7

1,854.7

1,558.2

2,557.0

2,481.8

3,170.0

Mississippi

River and

Tributaries

(MR&T)

370.0

370.0

368.0

368.0

256.5

490.0

468.2

531.6

Operation

and

Maintenance

(O&M)

4,570.0

5,078.5

5,552.8

5,552.8

2,330.3

6,143.0

5,990.2

6,013.2

Regulatory

212.0

218.0

221.0

221.0

221.0

221.0

225.0

221.0

General

Expenses

208.0

215.0

216.0

216.0

220.0

226.0

220.0

220.0

FUSRAP

300.0

400.0

300.0

300.0

200.0

0

100.0

75.0

Flood

Control and

Coastal

Emergencies

(FCCE)

35.0

35.0

35.0

35.0

40.0

42.5

40.0

40.0

Office of the

Asst.

Secretary of

the Army

5.0

5.0

5.0

5.0

7.0

6.0

7.0

7.0

WIFIA

Program

7.2

7.2

7.2

7.2

0

5.0

10.0

7.2

Harbor

Maintenance

Trust Funda

—

—

—

—

1,700.0

—

—

—

Program

Investigations

Preconstruction,

Engineering,

and Design

69 USACE work plans are available at USACE, “Civil Works Budget and Performance,” https://www.usace.army.mil/

Missions/Civil-Works/Budget/#Work-Plans.

Congressional Research Service

30

Energy and Water Development: FY2026 Appropriations

Program

Total

approp

Rescissions

Total Title I

FY2022

Approp

FY2023

Approp

FY2024

Approp

FY2025

Approp

FY2026

Request

FY2026

House

S. 3293

FY2026

Approp

8,343.0

8,310.0

8,702.7

8,702.7

6,663.0

9,890.5

9,790.9

10,435.4

—

—

-22.2

-22.2

—

—

—

—

8,343.0

8,310.0

8,680.5

8,680.5

6,663.0

9,890.5

9,790.9

10,435.4

Sources: H.R. 6938 (P.L. 119-74) and explanatory statement; S. 3293 and draft report; H.R. 4553; H.Rept. 119213; 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; USACE Civil

Works FY2024 Budget and USACE Civil Works FY2022 Budget at https://www.usace.army.mil/Missions/CivilWorks/Budget/; FY2024 Budget Appendix for Corps of Engineers—Civil Works at https://www.govinfo.gov/app/

details/BUDGET-2024-APP/BUDGET-2024-APP-1-20; Division D of P.L. 117-328; Division D of P.L. 117-103;

Division D of P.L. 116-260.

Notes: FUSRAP = Formerly Utilized Sites Remedial Action Program; WIFIA = Water Infrastructure Finance and

Innovation Act. Columns may not sum to totals because of rounding.

a.

P.L. 113-121. In the Administration’s FY2026 request, as with previous requests, some activities that are

funded in the O&M, Construction, and MR&T accounts were proposed to be funded directly from a Harbor

Maintenance Trust Fund (HMTF) account. That is, the Administration proposed funding eligible USACE

activities directly from the trust fund. This would replace the current practice of having USACE’s O&M,

Construction, and MR&T accounts incur expenses for HMTF-eligible activities, and for these expenses to be

reimbursed from the HMTF accounts. For example, HMTF-eligible maintenance dredging would no longer

be funded by the O&M account and reimbursed by the HMTF; instead, the dredging would be funded

directly from the HMTF account. Such proposals were not enacted in previous fiscal years since first

proposed for FY2019.

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;70

$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

70 Of the $1.480 billion in emergency supplemental funds provided by the Disaster Relief Supplemental Appropriations

Act, 2023 (Division N of P.L. 117-328), $350 million was made available for USACE to allocate in a work plan for

construction and operation and maintenance (O&M) of certain categories of projects (i.e., similar to additional funding

provided through annual appropriations). USACE allocated the $350 million from Division N along with additional

funding provided by Division D in its FY2023 work plan.

Congressional Research Service

31

Energy and Water Development: FY2026 Appropriations

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 did 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.71 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.72

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 7 shows Reclamation and CUP appropriations accounts from FY2022 through FY2026.

Table 7. Bureau of Reclamation and CUP

(budget authority in millions of nominal dollars)

FY2022

Approp

FY2023

Approp

FY2024

Approp

FY2025

Approp

FY2026

Request

FY2026

House

S. 3293

FY2026

Approp

1,747.1

1,787.2

1,751.7

1,710.7

1,112.0

1,710.6

1,415.6

1,465.6

Policy and

Administration

64.4

65.1

66.8

66.8

64.0

64.0

64.0

64.0

CVP Restoration

Fund (CVPRF)

56.5

45.8

48.5

55.7

65.4

65.4

65.4

65.4

Program

Water and

Related

Resources

71 The Water and Related Resources Account is largely funded by the Reclamation Fund, which receives and

distributes receipts related to a number of federal activities (including royalties received from oil and gas leasing on

federal lands). For more on this fund and financing of selected Reclamation Projects, see CRS Report R41844, The

Reclamation Fund: A Primer, by Charles V. Stern.

72 The Central Utah Project (CUP) moves water from the Colorado River basin in eastern Utah to the western slopes of

the Wasatch Mountain range. It was authorized in 1956 under the Colorado River Storage Project Act (P.L. 84-485).

For more information, see the CUP website at https://www.usbr.gov/projects/index.php?id=498.

Congressional Research Service

32

Energy and Water Development: FY2026 Appropriations

FY2022

Approp

FY2023

Approp

FY2024

Approp

FY2025

Approp

FY2026

Request

FY2026

House

S. 3293

FY2026

Approp

Calif. Bay-Delta

(CALFED)

33.0

33.0

33.0

33.0

32.0

32.0

32.0

32.0

Gross Current

Reclamation

Authority

1,901.0

1,931.0

1,900.0

1,866.3

1,273.4

1,872.0

1,577.0

1,627.0

Central Utah

Project (CUP)

Completion

23.0

23.0

23.0

23.0

17.0

23.0

23.0

23.0

Reclamation

and CUP

1,924.0

1,954.0

1,923.0

1,889.3

1,290.4

1,895.0

1,600.0

1,650.0

Offsets,

Transfers, and

Adjustments

—

-45.8

—

—

—

—

200.0

—

1,924.0

1,908.2

1,923.0

1,889.3

1,290.4

1,895.0

1,800.0

1,650.0

Program

Total

Sources: H.R. 6938 (P.L. 119-74) and explanatory statement; S. 3293 and draft report; H.R. 4553; H.Rept. 119213; 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; Reclamation

and CUP FY2024 congressional budget justifications; Division D of P.L. 117-328; Division D of P.L. 117-103;

Division D of P.L. 116-260.

Notes: Total for S. 3293 includes $200 million in transfers from the Infrastructure Investment and Jobs Act (IIJA;

P.L. 117-58). Columns may not sum to totals because of rounding. CVP = Central Valley Project.

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.

Congressional Research Service

33

Energy and Water Development: FY2026 Appropriations

Department of Energy

The Energy and Water Development appropriations bill has funded nearly all DOE programs

since FY2005.73 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 8 provides recent DOE funding history. Most DOE programs funded by these

appropriations accounts are briefly described further below.

Table 8. Department of Energy

(budget authority in millions of nominal dollars)

FY2022

Approp

FY2023

Approp

FY2024

Approp

FY2025

Approp

FY2026

Request

FY2026

House

S. 3293

FY2026

Approp

Energy Efficiency and

Renewable Energy

3,200.0

3,460.0

3,460.0

3,460.0

888.0

1,830.0

2,227.2

1,950.0

Electricity Delivery

277.0

350.0

280.0

280.0

193.0

225.0

265.0

235.0

Cybersecurity,

Energy Security, and

Emergency

Response

185.8

200.0

200.0

200.0

150.0

200.0

190.0

190.0

Nuclear Energya

1,654.8

1,473.0

1,685.0

1,685.0

1,370.0

1,795.0

1,592.7

1,685.0

Fossil Energy

825.0

890.0

865.0

865.0

595.0

694.4

782.7

580.0

Energy Projects

—

222.0

83.7

—

—

—

98.1

97.6

Naval Petroleum

and Oil Shale

Reserves

13.7

13.0

13.0

13.0

13.0

13.0

13.0

13.0

Strategic Petroleum

Reserve (SPR)b

226.4

207.3

213.4

213.5

206.4

294.7

214.4

206.6

Northeast Home

Heating Oil Reserve

6.5

7.0

7.2

7.2

3.6

7.2

7.2

7.2

Energy Information

Administration

129.1

135.0

135.0

135.0

135.0

135.0

135.0

135.0

Energy Programs

73 The DOE Office of Intelligence and Counterintelligence is funded as part of the National Intelligence Program in the

Defense Appropriations bill.

Congressional Research Service

34

Energy and Water Development: FY2026 Appropriations

FY2022

Approp

FY2023

Approp

FY2024

Approp

FY2025

Approp

FY2026

Request

FY2026

House

S. 3293

FY2026

Approp

Non-Defense

Environmental

Cleanup

333.9

358.6

342.0

342.0

322.4

337.7

337.9

322.4

Uranium Enrichment

Decontamination

and

Decommissioning

Fund

860.0

879.1

855.0

855.0

814.4

844.4

875.0

865.0

7,475.0

8,100.0

8,240.0

8,240.0

7,092.0

8,400.0

8,000.0

8,250.0

Office of

Technology

Transitions

19.5

22.1

20.0

20.0

—

—

20.0

—

Office of Clean

Energy

Demonstrations

20.0

89.0

50.0

50.0

—

—

—

—

Grid Deployment

Office

—

—

60.0

60.0

15.0

25.0

45.0

25.0

Office of

Manufacturing and

Energy Supply

Chains

—

—

—

—

15.0

—

19.0

—

Advanced Research

Projects Agency–

Energy (ARPA-E)

450.0

470.0

460.0

460.0

200.0

350.0

414.0

350.0

Nuclear Waste

Disposal

27.5

10.2

12.0

12.0

12.0

12.0

12.0

12.0

Departmental

Admin. (net)

240.0

283.0

286.5

286.5

174.9

189.7

194.3

200.0

Office of Inspector

General

78.0

86.0

86.0

86.0

90.0

90.0

90.0

90.0

Office of Indian

Energy

58.0

75.0

70.0

70.0

50.0

75.0

65.0

75.0

Advanced

Technology Vehicles

Manufacturing

(ATVM) Loans

5.0

9.8

13.0

13.0

9.5

13.0

9.5

9.5

Title 17 Loan

Guarantee

29.0

181.2

—

-115.0

1,699.3

-121.0

-205.0

-205.0

Tribal Energy Loan

Guarantee

2.0

4.0

6.3

6.3

-12.0

6.3

6.3

6.3

Critical and

Emerging

Technologies

—

—

—

—

2.0

—

—

—

Science

Total, Energy

Programs

16,116.0

17,525.2 17,443.2 17,244.5 14,038.6 15,416.4 15,408.1 15,099.3

National Nuclear

Security Admin.

Congressional Research Service

35

Energy and Water Development: FY2026 Appropriations

FY2022

Approp

FY2023

Approp

FY2024

Approp

FY2025

Approp

FY2026

Request

FY2026

House

S. 3293

FY2026

Approp

Weapons Activities

15,920.0

17,116.1

19,108.0

19,293.0

20,074.4

20,662.0

20,074.4

20,378.0

Defense Nuclear

Nonproliferation

2,354.0

2,490.0

2,581.0

2,396.0

2,284.6

1,983.6

2,431.0

2,367.0

Naval Reactors

1,918.0

2,081.5

1,946.0

1,946.0

2,346.0

2,171.0

1,966.0

2,134.0

464.0

475.0

500.0

500.0

555.0

500.0

542.0

525.0

Office of

Admin./Salaries and

Expenses

Total, NNSA

20,656.0

22,162.6 24,135.0 24,135.0 25,260.0 25,316.7 25,013.4 25,404.0

Defense

Environmental

Cleanup

6,710.0

7,025.0

7,285.0

7,285.0

6,956.0

6,521.4

7,627.8

7,375.0

Defense Uranium

Enrichment D&D

573.3

586.0

285.0

285.0

278.0

—

279.7

—

Other Defense

Activities

985.0

1,035.0

1,080.0

1,107.0

1,182.0

1,180.0

1,169.2

1,170.0

Southwestern

10.4

10.6

11.4

11.4

10.4

10.4

10.4

10.4

Western

90.8

98.7

99.9

99.9

63.4

63.4

63.4

63.3

Falcon and Amistad

O&M

0.2

0.2

0.2

0.2

0.2

0.2

0.2

0.2

Colorado River

Basins Power

Marketing Fund

—

—

—

—

—

2.0

—

—

Total, PMAs

101.4

109.6

111.5

111.5

74.0

76.0

74.0

74.0

General Provisions

-286.1

2.0

-93.0

2.0

74.1

—

2.0

2.0

DOE Total

Appropriations

44,855.6

Offsets, Transfers,

and Adjustments

—

Power Marketing

Administrations

Total, DOE

48,445.4 50,246.8 50,170.3 47,862.7 48,510.4 49,574.1

49,124.3

44,855.6

-2,202.0

—

—

-168.1

—

-39.0

—

46,243.4 50,246.8 50,170.3 47,694.6 48,510.4 49,535.1 49,124.3

Sources: H.R. 6938 (P.L. 119-74) and explanatory statement; S. 3293 and draft report; H.R. 4553; H.Rept. 119213; 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; Department

of Energy FY2024 budget justification; P.L. 117-328 and explanatory statement.

Notes: S. 3269 total includes $3.970 billion in IIJA transfers. Columns may not sum to totals because of

rounding. Table includes some category adjustments for comparability. Excludes rescissions and supplementals in

subsequent acts.

a. Includes amounts in defense budget function. Defense amount of $160 million excluded from Energy

Programs total and included in Defense Activities total in FY2026 request column.

b. Includes SPR Petroleum Account and rescissions.

In addition to the regular annual appropriations shown in Table 8, DOE received appropriations

from IIJA; these additional amounts for FY2023, FY2024, FY2025, and FY2026 are shown in

Table 9. Additional appropriations also became available to DOE from the IRA beginning in

Congressional Research Service

36

Energy and Water Development: FY2026 Appropriations

FY2022, as shown in Table 10. 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. 117328, as shown in Table 11.

Table 9. Additional FY2023-FY2026 Department of Energy Funding Under IIJA

(budget authority in millions of nominal dollars)

IIJA

FY2023

IIJA

FY2024

IIJA

FY2025

IIJA

FY2026

2,221.8

1,945.0

1,945.0

1,945.0

100.0

100.0

100.0

100.0

Electricity

1,610.0

1,610.0

1,610.0

1,610.0

Nuclear Energy

1,200.0

1,200.0

1,200.0

1,200.0

Fossil Energy and Carbon Management

1,444.5

1,447.0

1,449.5

1,317.0

Carbon Dioxide Transportation Infrastructure Finance and

Innovation Program Account

2,097.0

—

—

—

Office of Clean Energy Demonstrations

4,426.3

4,476.3

4,526.3

2,900.0

13,099.6

10,778.3

10,830.8

9,072.0

Program

Energy Efficiency and Renewable Energy

Cybersecurity, Energy Security, and Emergency Response

Total

Sources: H.Rept. 117-394; Department of Energy FY2024 and FY2025 congressional budget justifications; IIJA.

Note: Does not include proposed transfers in FY2026 E&W bills.

Table 10. Additional Department of Energy Funding Under the IRA

(budget authority in millions of nominal dollars)

Program

IRA Section

Approp

Fiscal Years

Home Energy Efficiency Rebates

50121

4,300

FY2022-FY2031

Home Electric Efficiency Rebates, States

50122

4,275

FY2022-FY2031

Home Electric Efficiency Rebates, Tribes

50122

225

FY2022-FY2031

Home Energy Efficiency Contractor Training Grants

50123

200

FY2022-FY2031

Building Energy Code Adoption

50131(b)

330

FY2022-FY2029

Building Energy Code Adoption

50131(c)

670

FY2022-FY2029

Title 17 Loan Guarantees

50141

3,600

FY2022-FY2026

ATVM Loans

50142

3,000

FY2022-FY2028

Domestic Manufacturing Conversion Grants

50143

2,000

FY2022-FY2031

Energy Infrastructure Reinvestment

50144

5,000

FY2022-FY2026

Tribal Energy Loan Guarantees

50145

75

FY2022-FY2028

Electric Transmission Facility Financing

50151

2,000

FY2022-FY2030

Transmission Line Siting Grants

50152

760

FY2022-FY2029

Offshore Wind Planning

50153

100

FY2022-FY2031

Advanced Industrial Facilities Deployment

50161

5,812

FY2022-FY2026

Inspector General

50171

20

FY2022-FY2031

National Laboratory Infrastructure

50172

Congressional Research Service

FY2022-FY2027

37

Energy and Water Development: FY2026 Appropriations

Program

IRA Section

Office of Science

Approp

Fiscal Years

50172(a)

Science Laboratory Infrastructure Projects

133

High Energy Physics Construction and Equipment

304

Fusion Energy Construction and Equipment

280

Nuclear Physics Construction and Equipment

217

Advanced Scientific Computing Facilities

164

Basic Energy Sciences Projects

295

Isotope Research and Development Facilities

158

Office of Fossil Energy and Carbon Management

50172(b)

150

Office of Nuclear Energy

50172(c)

150

Office of Energy Efficiency and Renewable Energy

50172(d)

150

50173

700

Availability of High-Assay Low-Enriched Uranium

DOE Total

FY2022-FY2026

35,068

Source: Inflation Reduction Act (IRA; P.L. 117-169). Appropriations for items in Section 50172 are for the same

fiscal year period.

Note: The FY2025 reconciliation measure (P.L. 119-21) rescinds unobligated appropriations for some programs.

Table 11. Additional FY2023 Department of Energy Funding in

Divisions M and N of P.L. 117-328

(budget authority in millions of nominal dollars)

Program

Division M

Division N

Total

Advanced Nuclear Fuel Availability

100.0

—

100.0

Advanced Reactor Demonstration Program

60.0

—

60.0

National Reactor Innovation Center

20.0

—

20.0

Risk Reduction for Future Demonstrations

120.0

—

120.0

125.3

—

125.3

Electricity (Puerto Rico electricity grid resilience)

—

1,000.0

1,000.0

Western Area Power Administration

—

520.0

520.0

425.3

1,520.0

1,945.3

Nuclear Energy

Defense Nuclear Nonproliferation (Ukraine-related activities)

Total

Source: P.L. 117-328, Divisions M and N.

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)

Congressional Research Service

38

Energy and Water Development: FY2026 Appropriations

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.”74

Renewable power programs focus on electricity generation from solar, wind, water, and

geothermal sources. They are also developing concentrated solar technologies to produce hightemperature 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 energyrelated 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.

•

•

•

State and Community Energy Programs (SCEP), 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 (MESC), which provides support for

increasing U.S. manufacturing capacity for critical energy technologies and for

increasing industrial energy efficiency.

Federal Energy Management Program (FEMP), which provides guidance and

expertise to federal agencies to meet federal goals on energy use and emissions.

The Trump Administration is not requesting funding for SCEP and FEMP as separate offices in

FY2026; it is, however, requesting $15 million for MESC as a separate office. The House-passed

bill does not include separate accounts for SCEP, FEMP, or MESC. A DOE reorganization on

November 20, 2025, changed the name of EERE to the Office of Critical Minerals and Energy

Innovation.

For more information, see CRS In Focus IF13118, DOE Energy Efficiency and Renewable

Energy (EERE) Appropriations, FY2026, by Martin C. Offutt and Lexie Ryan.

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.75

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.

74 DOE, FY 2025 Congressional Justification, vol. 4, March 2024, p. 15, https://www.energy.gov/sites/default/files/

2024-03/doe-fy-2025-budget-vol-4-v5.pdf.

75 DOE Office of Electricity, “Mission,” https://www.energy.gov/oe/office-electricity.

Congressional Research Service

39

Energy and Water Development: FY2026 Appropriations

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 costshared 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,76 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.”77 The House-passed bill

76 The Biden Administration renamed the Office of Fossil Energy as the Office of Fossil Energy and Carbon

Management in 2021. This name change was also adopted in recent E&W appropriations bills. See DOE, “Our New

Name Is Also a New Vision,” July 8, 2021, https://www.energy.gov/fe/articles/our-new-name-also-new-vision.

77 DOE, FY 2026 Congressional Justification, Vol. 4, Fossil Energy, May 30, 2025, https://www.energy.gov/sites/

default/files/2025-06/doe-fy-2026-vol-4-fe.pdf.

Congressional Research Service

40

Energy and Water Development: FY2026 Appropriations

would change the name of the account to Fossil Energy. A DOE reorganization on November 20,

2025, changed the name of FECM to the Hydrocarbons and Geothermal Energy Office.

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).

FE’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.

Strategic Petroleum Reserve

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.78

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.79 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.80 In response to oil supply and trade

disruptions linked to military conflict in Iran, DOE announced plans in March 2026 to release 172

million barrels of crude oil from the SPR. This release is part of an International Energy Agency

(IEA) coordinated release plan totaling 400 million barrels. DOE is releasing barrels using

exchange authorities.81

78 Congress directed DOE to sell and close the 1-million-barrel Northeast Gasoline Supply Reserve (NGSR) during

FY2024 (P.L. 118-42, Section 308). DOE issued an NGSR notice of sale in May 2024 and awarded contracts to

complete the sale in July 2024. DOE, “DOE Awards Contracts for the Sale of Northeast Gasoline Supply Reserve as

Americans Hit the Road for Summer Driving Season,” July 2, 2024, https://www.energy.gov/articles/doe-awardscontracts-sale-northeast-gasoline-supply-reserve-americans-hit-road-summer.

79 CRS Insight IN11916, Strategic Petroleum Reserve Oil Releases: October 2021 Through October 2022, by Phillip

Brown; DOE, “SPR Quick Facts,” https://www.energy.gov/ceser/spr-quick-facts.

80 For additional information about SPR releases, see DOE, History of SPR Releases, https://www.energy.gov/fe/

services/petroleum-reserves/strategic-petroleum-reserve/releasing-oil-spr, accessed February 27, 2023.

81 DOE, “Energy Department Begins Delivering SPR Barrels at Record Speeds,” March 20, 2026,

https://www.energy.gov/hgeo/articles/energy-department-begins-delivering-spr-barrels-record-speeds; and

International Energy Agency, “IEA Member Countries to Carry out Largest Ever Oil Stock Release amid Market

(continued...)

Congressional Research Service

41

Energy and Water Development: FY2026 Appropriations

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.82 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.”83 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.84

On November 20, 2025, DOE announced an organizational realignment that made several

changes to the offices overseen by the Undersecretary for Science, which includes the Office of

Science.85 New offices within the responsibilities of the Undersecretary for Science include the

Office of Fusion, the Office of Artificial Intelligence and Quantum, and the Office of Technology

Commercialization (previously the Office of Technology Transfer under the Energy Secretary);

other offices were eliminated.

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. Under the DOE reorganization discussed above,

CRS is unable to determine whether the new Office of Artificial Intelligence and Quantum is to

be responsible for future funding and programmatic activities related to AI and quantum currently

undertaken by ASCR.

Disruptions from Middle East Conflict,” March 11, 2026, https://www.iea.org/news/iea-member-countries-to-carryout-largest-ever-oil-stock-release-amid-market-disruptions-from-middle-east-conflict.

82 For additional information about congressionally required SPR oil sales, see Strategic Petroleum Reserve: Mandated

and Modernization Sales, by Phillip Brown, a congressional distribution memorandum available to congressional

clients by request from the author.

83 DOE, FY2026 Congressional Justification: Budget in Brief, p. 19, https://www.energy.gov/sites/default/files/202506/doe-fy-2026-bib-v6.pdf.

84 CRS In Focus IF12692, Department of Energy (DOE) Office of Science, by Todd Kuiken.

85 DOE, “Energy Department Announces Organizational Realignment to Strengthen Efficiency and Unleash American

Energy,” press release, November 20, 2025, https://www.energy.gov/articles/energy-department-announcesorganizational-realignment-strengthen-efficiency-and-unleash.

Congressional Research Service

42

Energy and Water Development: FY2026 Appropriations

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.86 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.87

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.88 As part of its organizational realignment, DOE established a new Office of

Fusion under the responsibilities of the Undersecretary for Science. CRS is unable to determine

whether the new Office of Fusion is to be responsible for future funding and programmatic

activities currently undertaken by FES.89 For more information, see CRS Report R48866, Toward

Commercial Fusion Energy: Considerations for Congress, by Todd Kuiken.

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. One major

project is the Sanford Underground Research Facility, which enables researchers to study how the

universe was formed and how organisms survive in extreme conditions.90 The Nuclear Physics

program (NP) 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 ElectronIon 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. As part of its organizational realignment, DOE

established a new Office of Artificial Intelligence and Quantum under the Undersecretary for

86 DOE, FY 2026 Congressional Justification: Budget in Brief, May 2025, p. 20, https://www.energy.gov/sites/default/

files/2025-06/doe-fy-2026-bib-v5.pdf.

87 For more information, see DOE Genomic Science Program, “Bioenergy Research Centers,”

https://www.genomicscience.energy.gov/bioenergy-research-centers.

88 The name “ITER” was derived from “international thermonuclear experimental reactor” but is referred to as the

ITER Project by the international organization that is building it. See “What Is ITER?,” https://www.iter.org/proj/

inafewlines. Also see CRS Report R48362, ITER—An International Nuclear Fusion Research and Development

Facility, coordinated by Todd Kuiken.

89 DOE, “Energy Department Announces Organizational Realignment to Strengthen Efficiency and Unleash American

Energy,” press release, November 20, 2025, https://www.energy.gov/articles/energy-department-announcesorganizational-realignment-strengthen-efficiency-and-unleash.

90 Sanford Underground Research Facility, “Areas of Research,” https://sanfordlab.org/areas-of-research.

Congressional Research Service

43

Energy and Water Development: FY2026 Appropriations

Science.91 CRS is unable to determine whether the new Office of Artificial Intelligence and

Quantum is to be responsible for future funding and programmatic activities previously held

under other program areas in the Office of Science.

For more details, see CRS Report R48694, Federal Research and Development (R&D) Funding:

FY2026, coordinated by Emily G. Blevins.

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.”92 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.93

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.”94 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. DOE’s

November 2025 reorganization eliminated OCED and divided its responsibilities among other

offices.

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

91 DOE, “Energy Department Announces Organizational Realignment to Strengthen Efficiency and Unleash American

Energy,” press release, November 20, 2025, https://www.energy.gov/articles/energy-de

This text is long and has been trimmed here. Open the source document for the complete record.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

A word about cookies

We need a few to keep you signed in and the library working. The rest help us see which pages people use and where they get stuck. They stay off unless you say yes.

Energy and Water Development: FY2026 Appropriations · R48599 | Frix