The FY2026 Energy and Water Appropriations Act is now law, and energy developers should be paying close attention.
President Trump signed H.R. 6938 on January 23, 2026, delivering $58 billion in discretionary spending. This legislation doesn't just allocate funds—it signals where federal energy policy is headed.
Nuclear Gets a Major Boost
Nuclear energy is the clear winner. The National Nuclear Security Administration receives $25.4 billion, with $20.4 billion going toward weapons modernization. Civilian nuclear programs get $1.785 billion, up $100 million from last year, including continued support for advanced reactor demonstrations and HALEU production.
The Nuclear Regulatory Commission also receives $971.5 million with a clear mandate: speed up reactor licensing. The Administration wants 400 gigawatts of nuclear capacity by 2050, and this funding reflects that ambition.
Oil and Gas Development Moves Forward
Fossil energy receives $720 million, with the account refocused toward reliable, efficient generation technologies. Onshore oil and gas development at the Bureau of Land Management gets a $7.4 million increase, and offshore conventional energy sees an $11.2 million boost.
Critical minerals extraction—essential for domestic supply chain independence—also receives significant attention, with new investment in production technologies and a directive to prioritize domestic mining claims.
Some Programs Didn't Make the Cut
The Office of Clean Energy Demonstrations is gone. The DOE's Office of Energy Justice and Equity receives nothing. Energy Efficiency and Renewable Energy takes a $1.5 billion cut from FY25 levels.
What This Means
Federal priorities have shifted. Developers working in nuclear and natural gas will find a supportive environment. Those relying on federal renewable energy programs may need to adjust their strategies.
I've written a detailed breakdown of the funding allocations, policy riders, and strategic implications on our website.
Read the full analysis here.
