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Energy Funding in 2026: What Survived the One Big Beautiful Bill and Where the Money Is Now

Last updated: February 17, 2026

The energy funding landscape shifted fundamentally in 2025. The One Big Beautiful Bill Act repealed solar and wind tax credits for new projects after July 2026, rescinded over $5 billion in IRA clean energy programs, and renamed EERE to the Office of Critical Minerals and Energy Innovation. But DOE loan authority hit $400 billion, GRIP Round 3 will deploy $2.9 billion in grid grants, and nuclear got its biggest investment in decades. Here is where energy funding actually is right now.

What Changed: The OBBBA Reshuffled Everything

The One Big Beautiful Bill Act, signed July 4, 2025, is the single most consequential change to energy funding since the IRA itself. Understanding what it did is essential to knowing where money is and is not in 2026. The OBBBA eliminated production and investment tax credits (Sections 45Y and 48E) for solar and wind projects that begin construction on or after July 4, 2026 and are placed in service after December 31, 2027. Projects with construction started before that date still qualify under standard continuity rules, but this creates a hard cliff. Developers have until July 4, 2026 to begin construction or lose access. Other clean technologies were not eliminated on the same timeline. Geothermal, fuel cells, combined heat and power, biogas, waste energy, thermal energy, and battery storage remain eligible through a phasedown: 100 percent through 2033, 75 percent through 2034, 50 percent through 2035, then zero. The OBBBA enhanced Section 45Q carbon sequestration credits, increasing values for carbon utilization and enhanced oil recovery. It terminated the clean hydrogen production credit (Section 45V) for facilities beginning construction after December 31, 2027. Section 48C Advanced Energy Project Credits were already fully allocated across two rounds totaling $10 billion and are not affected. Programs rescinded outright include the $27 billion EPA Greenhouse Gas Reduction Fund (statutory authority repealed), $760 million in transmission siting grants, the Advanced Industrial Facilities Deployment program, state-based home energy efficiency contractor training grants, Environmental Justice block grants, Climate Pollution Reduction grants, Neighborhood Access and Equity grants, and unobligated Methane Emissions Reduction Program funds. Total rescissions exceed $5 billion in unobligated IRA balances. The DOE was reorganized. The Office of Energy Efficiency and Renewable Energy was renamed the Office of Critical Minerals and Energy Innovation (CMEI) in November 2025, removing "renewable energy" from the name. The Loan Programs Office was renamed the Office of Energy Dominance Financing (EDF). The National Renewable Energy Laboratory was renamed in December 2025. The Office of Clean Energy Demonstrations received $0 in FY2026 appropriations, down from $50 million in FY2025.

DOE Grants: What Is Open Now

Despite the reorganization, DOE continues publishing funding opportunities. Several are open or imminent. DE-FOA-0003600, the FY2026 Office of Science Financial Assistance Program, has $500 million available across approximately 500 awards ranging from $50,000 to $5 million each. Pre-applications for multiple research panels are encouraged by February 27, 2026, with full applications due by May 1, 2026 for those panels. The program accepts rolling applications through September 30, 2026. DE-FOA-0003605, Restoring Reliability through Coal Recommissioning, allocates up to $525 million for Topic 1. Full applications were due February 11, 2026. This program reflects the administration's shift toward fossil fuel reliability and is managed by DOE's Office of Fossil Energy and Carbon Management through NETL. ARPA-E SUPERHOT, the geothermal technology program, has $30 million available with full applications due March 5, 2026. ARPA-E SPARKS, the continuous open solicitation for early-stage energy concepts, accepts rolling applications with individual awards up to $500,000. ARPA-E also runs three active critical minerals programs: ROCKS ($40 million for mineral exploration sensing), MAGNITO ($20 million for new magnetic materials), and TRACE-Ga ($6 million for gallium recovery). See our critical minerals funding guide for the full picture. DOE SBIR/STTR has an annual budget exceeding $300 million, with approximately 400 Phase I ($200,000 over 9 months) and 200 Phase II ($1.1 million over 2 years) awards per year across 60-plus technical topics. FY2026 solicitation windows run May through August and September through January. Note that DOE SBIR/STTR operates under its own statutory authority separate from the lapsed SBA-administered program. See our SBIR status guide for more.

DOE Loans: $400 Billion in Authority, Expanding Scope

The Office of Energy Dominance Financing (formerly LPO) is the largest energy financing operation in the federal government. Its portfolio stands at $118 billion across 46 active loans and 25 conditional commitments, with over $400 billion in total available loan authority. The scope has expanded. Under OBBBA, EDF eligibility now includes coal and oil/gas power generation alongside existing clean energy categories. Critical minerals and AI data center energy supply are also newly emphasized priorities. Recent notable loans include $1 billion to Constellation Energy for the Three Mile Island nuclear restart, the first concurrent conditional commitment and financial close under the current administration. Holtec received up to $1.52 billion for the Palisades nuclear restart in Michigan. Lithium Americas received $2.26 billion for Thacker Pass, the largest lithium mine in North America. Ioneer received $996 million for the Rhyolite Ridge lithium-boron project in Nevada. EnergySource Minerals has a $1.36 billion conditional commitment for the first commercial-scale direct lithium extraction facility in California. The application process starts with a free pre-application consultation through energy.gov/EDF. A Part I application demonstrates eligibility and financial viability. Due diligence typically takes 6 months to over a year. The process is similar to commercial lending. Two major authorities expire September 30, 2026: Section 1703 IRA additional loan authority ($40 billion) and the Energy Infrastructure Reinvestment program ($250 billion loan cap, of which only $1.4 billion has been loaned). Applications filed before expiration can still be processed, but the window is closing.

Grid Modernization: GRIP Round 3 Is the Big One

The Grid Resilience and Innovation Partnerships program, funded at $10.5 billion under IIJA, is in its final round. Rounds 1 and 2 awarded $7.6 billion to 46 projects in 47 states. Round 3, approximately $2.9 billion, is expected to be announced in spring 2026 with concept papers typically due about two months after announcement. Other IIJA grid programs continue in their final authorization year. Smart Grid Investment Grants have $3 billion total ($600 million per year). Grid Resilience Utility and Industry Grants have $2.5 billion ($500 million per year). The Grid Innovation Program has $5 billion plus a $1 billion rural set-aside. The Transmission Facilitation Program operates a $2.5 billion revolving fund. DOE has committed $1.2 billion via capacity contracts and announced $2.2 billion for 13 GW of new transmission capacity. IRA grid programs fared worse. The $760 million Transmission Siting and Economic Development grants were rescinded by OBBBA. Interregional and offshore wind transmission planning funds were also rescinded. Cybersecurity for Renewable Energy Infrastructure has approximately $30 million for R&D projects to reduce cyber risks to energy delivery infrastructure. FY2026 is the final year of IIJA authorization for most of these programs. After September 2026, grid funding levels will depend on annual appropriations unless new legislation extends authorization.

Hydrogen Hubs: In Crisis

The Regional Clean Hydrogen Hubs program was originally $8 billion for seven hubs. Two have been terminated: Pacific Northwest ($1 billion, rescinded, appealing) and ARCHES in California ($1.2 billion, rescinded, paused, appealing). The remaining five, covering Appalachia, the Mid-Atlantic, Midwest, Gulf Coast, and the Heartland, are under review for reduction or elimination. The clean hydrogen production tax credit (Section 45V) was terminated by OBBBA for facilities beginning construction after December 31, 2027. The $1 billion Clean Hydrogen Electrolysis program, targeting production costs below $2 per kilogram by 2026, continues but its future funding depends on whether the remaining hubs survive review. Organizations that were counting on hydrogen hub partnerships for project viability should have contingency plans.

State Energy Programs: The Backstop

As federal programs contract, state energy offices become increasingly important. NYSERDA in New York has multiple open programs. The Commercial and Industrial Carbon Challenge offers $500,000 to $5 million per project. Energy Efficiency and Clean Tech Training has $6.7 million available across multiple rounds. EmPower+ provides free home energy upgrades for low and moderate income households. FlexTech offers cost-share for commercial and industrial technical assistance. Affordable Solar and Storage provides up to $200,000 per award for predevelopment. The California Energy Commission has several open solicitations. GFO-25-602 for Fuels and Transportation closes March 25, 2026. GFO-25-604 closes April 22, 2026. GFO-25-304 for Air Quality and Energy Interventions closes April 30, 2026. GFO-25-606 closes May 7, 2026. IRA Home Rebate Programs are rolling out state by state. The HOMES program offers up to $8,000 for whole-home retrofits achieving 35 percent or more energy savings. The HEAR program offers up to $14,000 per household for heat pumps, electric stoves, panel upgrades, insulation, and wiring. California's HEEHRA program is fully reserved in Central and Southern regions. Colorado, Wisconsin, and several other states have launched. Connecticut and Minnesota expect launches in 2026. The Weatherization Assistance Program survived the FY2026 budget at $329 million, with an average subsidy of $6,500 per housing unit for low-income households. LIHEAP (Low Income Home Energy Assistance) received $4.045 billion for FY2026. Search Funding Landscape for state-level energy programs alongside federal opportunities.

Tax Credits: What Survived and What Deadline Matters

The July 4, 2026 construction-start deadline is the most important date in energy funding this year. Solar and wind projects that have not begun construction by that date lose access to production and investment tax credits. Safe-harboring activity is already intense. Credits that survived beyond the solar/wind cliff include Section 45Q for carbon capture and sequestration, which was enhanced by OBBBA with increased credit values. Section 45X Advanced Manufacturing Production Credit continues with tightening domestic content requirements: 65 percent threshold after December 31, 2026, with Prohibited Foreign Entity restrictions effective July 4, 2025. Section 45Z Clean Fuel Production Credit survives. Geothermal, battery storage, fuel cells, biogas, combined heat and power, and waste energy projects retain 45Y/48E eligibility through 2032 with a graduated phasedown through 2035. Credit transferability under Section 6418 survived OBBBA, which matters significantly for tax equity markets. Credits can still be bought and sold. Section 25C home energy efficiency improvement credits survive with some new restrictions. Section 25D residential clean energy credits for solar are subject to the same 45Y/48E phase-out timeline. The Rhodium Group estimates that over $522 billion in announced clean energy investments are now at risk from the combined effects of OBBBA rescissions, tax credit phase-outs, and policy uncertainty.

Who Can Apply and Where to Look

DOE grant eligibility varies by program. The Office of Science program (DE-FOA-0003600) is open to universities, national laboratories, nonprofits, for-profit entities, and state and local governments. ARPA-E programs are open broadly but highly competitive. SBIR/STTR is limited to small businesses with fewer than 500 employees. EDF loans require standard creditworthiness and collateral. Projects typically need to be $100 million or larger, though smaller projects can qualify in some categories. GRIP grid grants are available to states, Tribes, local governments, utilities, and public-private partnerships. State energy office programs have their own eligibility requirements. IRA home rebate programs are available to homeowners through state-administered channels. Weatherization targets low-income households through local agencies. For open DOE FOAs, watch the CMEI Exchange portal, the Office of Science funding page, and the ARPA-E Exchange. For state programs, check your state energy office directly or search Funding Landscape to see federal and state opportunities side by side.

Frequently Asked Questions

Did the IRA get repealed?

Not entirely. The OBBBA rescinded over $5 billion in unobligated IRA clean energy balances and repealed the $27 billion Greenhouse Gas Reduction Fund. Solar and wind tax credits end for new construction starting after July 4, 2026. But many IRA programs survive: DOE loan authority, Section 45Q carbon capture credits, Section 45X manufacturing credits, home rebate programs rolling out through states, and credits for geothermal, storage, fuel cells, and biogas through 2032-2035.

What is the July 4, 2026 deadline?

The OBBBA eliminated clean energy production and investment tax credits (Sections 45Y and 48E) for solar and wind projects that begin construction on or after July 4, 2026 and are placed in service after December 31, 2027. Projects must begin construction before that date to qualify. This is driving a rush of safe-harbor activity across the solar and wind industries.

What happened to EERE?

DOE's Office of Energy Efficiency and Renewable Energy was renamed to the Office of Critical Minerals and Energy Innovation (CMEI) in November 2025. The Loan Programs Office was renamed to the Office of Energy Dominance Financing (EDF). The National Renewable Energy Laboratory was also renamed. Programs continue under the new names but with shifted priorities toward fossil fuels, nuclear, and critical minerals.

Are there still energy grants for small businesses?

Yes. DOE SBIR/STTR operates under its own statutory authority and has an annual budget exceeding $300 million with over 600 awards per year. ARPA-E SPARKS accepts rolling applications up to $500,000. State energy office programs often target small and medium businesses with less competition than federal programs.

What energy sectors are getting the most funding now?

Nuclear (TMI restart $1 billion, Palisades $1.52 billion), critical minerals ($40 billion-plus committed), grid modernization (GRIP Round 3 at $2.9 billion), and carbon capture (enhanced 45Q credits) are the current winners. Coal recommissioning received $525 million in new DOE funding. Solar and wind still get tax credits but face the July 2026 cliff.

Are home energy rebates still available?

Yes. IRA home rebate programs (HOMES up to $8,000, HEAR up to $14,000) are rolling out through state energy offices. California is fully reserved in some regions. Colorado, Wisconsin, and several other states have launched. The federal Weatherization Assistance Program received $329 million for FY2026. Search your state energy office for availability.

What happens when IIJA authorization expires?

FY2026 is the final year for many IIJA energy programs, including GRIP grid grants, hydrogen hubs, Smart Grid Investment Grants, and supplemental SRF funding. After September 2026, funding levels drop to annual Congressional appropriations unless new legislation extends authorization. This makes 2026 the last year for many large-scale infrastructure grants.

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