FY2026 Energy Bill Boosts Nuclear and DOE Science, Cuts Renewables
March 1, 2026 · 2 min read
Arthur Griffin
The FY2026 Energy and Water Development appropriations bill makes DOE's new priorities explicit in dollar terms: nuclear energy and basic science gain ground while renewable energy programs, ARPA-E, and fossil fuel research all take cuts.
Winners and Losers in the $49 Billion Budget
The bill allocates just over $49 billion to the Department of Energy. The funding tables tell a clear story about where Congress wants researchers to focus.
DOE's Office of Science rises to $8.4 billion from $8.24 billion — funding that supports approximately 10,000 new research awards across physics, chemistry, materials science, and computational research. Nuclear Energy increases to $1.785 billion, up $100 million from FY2025, reflecting bipartisan enthusiasm for advanced reactor development and sustaining the existing nuclear fleet.
On the other side of the ledger, Energy Efficiency and Renewable Energy drops to $3.1 billion from $3.46 billion — a 10% reduction. ARPA-E, the high-risk energy research program modeled after DARPA, falls 24% to $350 million from $460 million. Fossil Energy programs decline to $720 million from $865 million.
The $5.2 Billion Infrastructure Redirect
The bill reprograms $5.164 billion in unobligated Infrastructure Investment and Jobs Act funds. Money originally earmarked for carbon dioxide transportation infrastructure ($1.5B), regional direct air capture hubs ($1.04B), the Civil Nuclear Credit Program ($1.28B), carbon capture programs ($950M), and EERE energy projects ($393M) has been redirected to other DOE accounts.
What This Means for New Proposals
The budget signals are unambiguous. Researchers in nuclear science, fusion, advanced materials, and fundamental physics are positioned for growth. Those in renewable energy R&D and advanced energy concepts face a tighter competitive landscape with fewer dollars available.
Two provisions soften the blow for active grantees: agencies cannot terminate awards solely because priorities changed, and indirect cost rates are locked at FY2024 levels. But for researchers writing new proposals, the funding tables should drive strategy.
Granted can help energy researchers identify opportunities aligned with the new federal priorities — or find state and foundation alternatives where federal funding has contracted. Further budget analysis is available on the Granted blog.