Besides significant cuts in subsidies for renewables in HR1, Republicans in the House Appropriations Committee are also attempting to cut even larger funding for renewables in the 2026 Energy and Water Development and Related Agencies appropriations bill.
Department of Energy Budget Cuts and Program Eliminations
The bill would reduce the Department of Energy’s budget by $1.4 billion and cut the Office of Energy Efficiency and Renewable Energy programs almost in half, favoring only those that “promote firm baseload power.” The bill would eliminate funding for research and development (R&D) in solar and wind energy.
The legislation would eliminate the authorization of $5.1 billion in Bipartisan Infrastructure Law funding for DOE activities related to hydrogen, direct air capture, carbon transport infrastructure, battery recycling, and school public facility energy upgrades, according to the House Appropriations Committee Democrats.
The bill would also reduce the Advanced Research Projects Agency – Energy (ARPA-E), which is responsible for fast-tracked research on novel energy technologies, by $110 million. It would also reduce the budget of the Loan Programs Office, which has most recently supported loans for solar and storage in Puerto Rico and an American solar panel production plant, by $20 million.
“Our nation’s future imperative is not attained through this Republican Energy and Water bill, unfortunately,”
said the Energy and Water Development and Related Agencies Appropriations Subcommittee Ranking Member, Marcy Kaptur (D-OH-09).
“America must become forever energy independent. This bill does not address the cost-of-living crisis but will instead result in higher energy bills for families and businesses. China is investing a record in energy, but this bill takes a step back from U.S. global leadership in the coming clean energy economy. America can and must do better. America’s future is the new age frontier of energy and water.”
