AAU signs a letter with business advocacy groups urging Congress to pass a strong full-year FY26 Energy & Water Development appropriations bill before the January 30, 2026, CR deadline to sustain Department of Energy innovation funding. It warns that failing to do so would weaken U.S. energy leadership and security amid intensifying global competition.
Key Takeaways:
- AAU indicates that federal support for energy innovation has had bipartisan support in the past and has been responsible for driving U.S. economic growth and providing more affordable, reliable, and cleaner energy.
- Investment in energy innovation is particularly critical now with global competition intensifying. The U.S. risks falling behind competitors which increases dependency on rival nations and risks energy disruptions and price volatility.
- To avoid these risks, AAU recommends stable, long-term funding for energy innovation programs, much like those at the Department of Energy (DOE), which have lowered costs and strengthened domestic manufacturing.
- Congress can reinforce energy competitiveness by increasing baseline funding for the DOE, which can help fund next-generation technologies.
Chair Collins, Vice Chair Murray, Chairman Cole, and Ranking Member DeLauro:
Federal support for energy innovation has long been an area of bipartisan agreement and has helped
U.S. companies turn new ideas into practical tools that create economic growth and make our energy system more reliable, more affordable, more secure, and cleaner. As global competition increases and America’s rivals move quickly to build the energy industries of the future, continued investment into these efforts is essential. We respectfully urge Congress to support energy innovation by passing a strong full-year Energy & Water Development appropriations bill before the current Continuing Resolution expires on January 30, 2026.
The United States has a long record of leading the world in energy innovation. American researchers and businesses were at the forefront of early breakthroughs in electricity, nuclear power, wind and solar energy, hydraulic fracturing, and many other technologies. But other nations have accelerated their own investments, and the U.S. now ranks 13th in energy innovation investments as a share of GDP while China has risen to first place. If we do not continue to support the next generation of energy solutions, we risk falling even further behind, increasing our dependence on rival countries for our energy needs and leaving us vulnerable to disruptions and price volatility.
Maintaining our leadership means ensuring that promising technologies have the support they need across the entire innovation lifecycle, from early-stage research and development to demonstration and ultimately commercialization. Stable, year-to-year federal funding is critical to helping innovators prove out new approaches, improve performance, and attract private investment. This kind of steady support also strengthens U.S. manufacturing, creates jobs in communities across the country, and keeps energy costs stable for families and businesses. Over the past decade, innovation programs at the Department of Energy have played a critical role in reducing the cost of major clean energy technologies.
As Congress continues its work on the Fiscal Year 2026 appropriations process, you have a key opportunity to reinforce America’s competitiveness and energy dominance. Increasing baseline funding for Department of Energy innovation activities will help ensure that the U.S. continues to shape the energy technologies that will define the decades ahead, from long duration energy storage to next-generation geothermal and many others. These investments send a clear message that America intends to lead in the global clean energy marketplace. On the other hand, failure to
pass a strong full-year Energy & Water bill – one that preserves DOE’s core innovation functions and capabilities, and maintains prior-year funding commitments across the RDD&D pipeline – would put American leadership, the benefits of new energy technologies to U.S. workers and families, and our energy security at risk.
We appreciate your past support for energy innovation and your ongoing leadership on these issues. As you craft the remainder of the FY26 funding bills, we respectfully ask that you prioritize the Energy & Water bill for passage before January 30, 2026, so that all Americans can continue to benefit from a strong, affordable, and secure energy system.
Thank you for your consideration.