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The U.S. Department of Energy (DOE) has released its budget proposal for the 2026 fiscal year, signaling a dramatic shift in funding priorities by slashing direct support for solar and wind energy while boosting investments in nuclear weapons.
According to the proposal, funding for the DOE’s Office of Energy Efficiency and Renewable Energy (EERE) would be reduced by 74%, dropping from US$3.46 billion in FY2025 to just US$888 million in FY2026.
Of the US$888 million proposed for EERE, only US$240 million would be directed toward renewable energy technologies—a significant decline from the US$795 million allocated in FY2024. Notably, the budget includes no funding for solar photovoltaics (PV), wind energy, or renewable energy grid integration. Instead, all renewable energy funds would be focused exclusively on water power and geothermal technologies.
For context, the FY2024 budget allocated US$318 million to solar PV, US$137 million to wind energy, and US$22 million to grid integration.
The proposal also includes deep cuts to other EERE programs, including those focused on sustainable transportation, buildings, and industrial decarbonization. Additionally, it proposes the complete elimination of the Office of Technology Commercialization and the Office of Clean Energy Demonstrations, each facing a 100% budget cut.
These proposed changes mark a significant departure from recent federal support for clean energy, raising serious concerns about the future of America’s renewable energy leadership.