The President’s fiscal year (FY) 2027 Budget Request for the Department of Energy (DOE) would implement cuts across the Department’s energy programs and create new offices. More information is needed to understand the potential taxpayer risks and advantages to such a significant restructuring.

The DOE is requesting $53.9 billion, a nearly 10% boost compared to the $49.1 billion enacted for FY2026. Most of this boost came from a $7.4 billion increase (+29%) for the National Nuclear Security Administration (NNSA), accompanied by a $2.6 billion decrease (-11%) for DOE non-NNSA programs, with energy programs bearing the brunt of these cuts.

Energy Programs

The budget request proposes a massive re-organization of DOE energy programs, including the creation of six new offices: Baseload Power, Artificial Intelligence and Quantum (AIQ), Critical Minerals and Energy Innovation, Hydrocarbons and Geothermal Energy (HGEO), Fusion, and Strategy and Technology Roadmaps. Some, like the new Office of Critical Minerals and Energy Innovation, will take over existing responsibilities and programs from current offices. Some, like AIQ, are charged with entirely new missions. Others, like HGEO, appear to be a mix.

Budget Requests and Appropriations for Select Department of Energy Offices ($, millions)

*Does not include moved IIJA funds that are available until expended 

**Does not include $520,000 moved from unobligated Congressionally Directed Spending in 117–103 and P.L. 111–85 

Science: The Office of Science is the largest federal supporter of basic research in the physical sciences, with grants and contracts supporting over 22,000 researchers. Science continues to dominate the DOE energy budget, accounting for more than a third of the total non-defense budget request. The president's request would decrease appropriations by 13% over last year's enacted level.

Baseload Power: The budget request would create a fund for activities to enhance baseload power, including building and upgrading infrastructure and equipment. The account would be financed by transferring $3.5 billion in unobligated funds appropriated to Regional Clean Hydrogen Hubs under the Office of Clean Energy Demonstrations in the Infrastructure Investment and Jobs Act (IIJA).

Nuclear Energy: The President's request would decrease funding by 9%, a smaller cut than many other offices.

The Office of Artificial Intelligence and Quantum (AIQ): The budget request would create a new coordinating office within DOE for Artificial Intelligence (AI) and Quantum Information Science (QIS) activities. This office would be funded by transferring $1.2 billion in unobligated funds appropriated to Regional Clean Hydrogen Hubs under the Office of Clean Energy Demonstrations in the Infrastructure Investment and Jobs Act (IIJA).

The Office of Critical Minerals and Energy Innovation (CMEI): The budget request would repurpose the Office of Energy Efficiency and Renewable Energy (EERE) to support research, development, demonstration, and deployment related to critical minerals. The request seeks $1.1 billion for this office.

The Office of Hydrocarbons and Geothermal Energy (HGEO): The budget request would create a new office to conduct "research, development, demonstration and deployment" relating to hydrocarbon and geothermal resources. The office would also fund the National Energy Technology Laboratory. The request seeks $676 million for this office.

Electricity: The budget request would cut funding for the Office of Electricity by 13% over last year's enacted level. The request would repurpose $520,000 from funds previously appropriated for Congressionally Directed Spending projects in 2022 and 2009.

Advanced Research Projects Agency-Energy (ARPA-E): The ARPA-E was established in 2007 to promote "revolutionary advances in energy," with a focus on early-stage energy research and development for projects to early or too risky for private sector support. The President's request would cut funding by 43% over last year's enacted level.

Cybersecurity, Energy Security, and Emergency Response: The budget request would cut funding for the Office of Electricity by 16% over last year's enacted level.

Inspector General: The budget request would cut funding for the Office of Electricity by 14% over last year's enacted level.

Office of Technology Commercialization (OTC): The budget request would create a new office to "expand the commercial impact of the Department of Energy's research investments." The request seeks $26.6 million for this office.

Office of Fusion: The budget request would create a new coordinating office within DOE related to all fusion activities, funded at $10 million.

The Office of Strategy and Technology Roadmaps: The budget request would create a new office to "coordinate critical and emerging technology activities across DOE programs." The request seeks $3 million for this office.

Fossil Energy: The Office of Fossil Energy would be disbanded and its responsibilities divided between the Hydrocarbons and Geothermal Energy Office (HGEO) and the Office Critical Minerals and Energy Innovation (CMEI).

Grid Deployment: The Office of Grid Deployment was created in 2022 to oversee electric infrastructure. Last year, the President's Budget Request sough to shift Grid Deployment activities to the Office of Electricity. The budget requests no new funding for the program this year; it is unclear whether the Administration intends to stop all ongoing activities or to simply shift them elsewhere.

Office of Clean Energy Demonstrations (OCED): DOE created the Office of Clean Energy Demonstrations in 2021 to manage $27 billion in funding for clean energy projects. As of November 2025, OCED had committed over $18 billion to about 100 projects. Congress eliminated the OCED last year.

Nuclear Weapons and Nonproliferation Programs

The National Nuclear Security Administration (NNSA), which houses the nation's nuclear weapons programs and DOE's nuclear non-proliferation programs, would get a 29% funding boost. The NNSA budget does not fund the aircraft, submarines and missiles that make up the military's nuclear "triad," which are funded within the Pentagon's annual budget, but it does fund the nuclear warheads these systems are designed to deliver.

Recissions 

Additionally, the Administration is proposing to rescind and permanently cancel $15.2 billion in funding appropriated in 2022 in the Infrastructure Investment and Jobs Act (IIJA). Rescissions include, but are not limited to:

• $3 billion for Regional Clean Hydrogen Hubs
• $2.3 billion for Regional Direct Air Capture Hubs
• $1.7 billion for Carbon Storage Validation and Testing
• $1.5 billion for the Carbon Capture Demonstration Projects Program
• $594 million for Preventing Outages and Enhancing the Resilience of the Electric Grid
• $588 million for the Carbon Dioxide Transportation Infrastructure Finance and Innovation Program
• $503 million for Critical Material Supply Chain Research Facility
• $494 million for Hydroelectric Incentives