The budget cancels funds for renewable energy, carbon capture, EV programs and more.
The Trump Administration submitted its budget proposal for fiscal year 2026 to Congress, recommending over $163 billion in federal spending, cutting non-military spending by 20%.
Roughly 10% of the proposed cuts are related to clean energy and climate related funding. The White House said the budget cuts $15 billion in Infrastructure Investment and Jobs Act “Green New Deal” funds. It also cuts an additional $6 billion in electric vehicle (EV) funding programs.
“The Budget reorients Department of Energy funding toward research and development of technologies that could produce an abundance of domestic fossil energy and critical minerals, innovative concepts for nuclear reactors and advanced nuclear fuels, and technologies that promote firm baseload power,” said the White House in a press briefing.
A White House document entitled “Ending the Green New Scam” said proposed cuts also include:
- Eliminate Global Environment Facility and Climate Investment Funds
- Slash Environmental Justice Programs
- Cut Environmental Protection Agency grants to non-governmental organizations
- Cut $1.3 billion in National Oceanic and Atmospheric Administration (NOAA) climate research funds
- Cut $2.5 billion (74%) from the Department of Energy (DOE) Energy Efficiency and Renewable Energy (EERE) department
- Reduce funding for the Advanced Research Projects Agency – Energy (ARPA-E)
- Cut $80 million in Department of Interior renewable energy programs including offshore wind funding
- Cut Bureau of Land Management conservation programs and related climate education funding
- Eliminate the Low Income Home Energy Assistance Program (LIHEAP)
The proposed budget cuts include a nearly 55% cut to EPA funds compared to 2025 levels. It cuts overall Department of Energy funding by about 9%, including a 25% increase to National Nuclear Security Administration funding.
“This is a consequential moment in American history—thanks to President Trump’s leadership, the Energy Department has an opportunity to help the nation restore energy dominance, lead the world in innovation, and modernize our nuclear weapons stockpiles,” said Chris Wright, U.S. Secretary of Energy.
Executive branch proposed budgets are not law, but serve as a guidepost for negotiations in Congress.
“Donald Trump has one agenda: make life harder for families while handing Elon Musk and his billionaire friends a tax break,” said Katherine Clark, Democratic Whip. “Today, he is doubling down with a budget that will make child care, home energy, and housing more expensive for the very people who are stretching to pay their bills.”
