US Administration's initial proposal sees cuts to nuclear energy budget

Tuesday, 6 May 2025

Donald Trump's discretionary budget request for fiscal year 2026 was submitted to Congress by the Office of Management and Budget on 2 May. Known as the "skinny Budget", its submission comes ahead of the submission of the comprehensive budget request which will outline the Administration’s policy and funding priorities and the economic outlook for the coming fiscal year, compiled with input from the various federal agencies. That request will then be subject to hearings and negotiations in both the House and Senate before a final, merged budget is approved by Congress ahead of the US fiscal year, which begins on 1 October.

In total, the budget aims to cut more than USD163 billion from non-defence federal spending for FY2026, a 22.6% reduction on the current year.

"The budget supports the president’s commitment to unleash America’s affordable and reliable energy and natural resources" and "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", the Office of Management and Budget said. More than USD15 billion of funds provided to the Department of Energy under the Infrastructure Investment and Jobs Act are cancelled.

According to the proposal, Office of Nuclear Energy funding for "non-essential research on nuclear energy" is being reduced "to focus on what is truly needed to achieve national dominance in nuclear technology. This includes developing innovative concepts for nuclear reactors, researching advanced nuclear fuels, and maintaining the capabilities of the Idaho National Laboratory".

Funding for the Department of Energy Office of Environmental Management, which carries out activities at 14 active cleanup sites and operates the Waste Isolation Pilot Plant geologic disposal facility in New Mexico, is being cut by USD389 million. This reflects a reduction of about USD178 million for the transfer of responsibility for the Savannah River site in South Carolina to the National Nuclear Security Administration.

US Secretary of Energy Chris Wright described the budget as a "consequential moment" for the USA, saying that a "culture of transparency, performance, and common sense" is needed to restore US energy dominance and innovation leadership and to modernise its nuclear weapons stockpiles. "This administration’s budget proposal for the Energy Department supports those efforts and will ensure that the Department accomplishes its mission while also fulfilling President Trump's promise to restore the responsible stewardship of the American taxpayer's dollars," he said.