Today, the White House released President Biden’s Fiscal Year 2024 budget request, which includes $52 billion for the Department of Energy, an increase from the $48 billion enacted for FY 2023.

The proposed budget reflects the Administration’s priorities for spending. The Office of Budget and Management (OMB) noted the FY 2024 budget for DOE “invests in basic research and scientific infrastructure authorized in the CHIPS and Science Act; creates jobs building clean energy infrastructure; targets greenhouse gas (GHG) emission reductions across sectors; advances energy justice; and modernizes and ensures the safety and security of the nuclear weapons stockpile.”
 

What You Should Know

Further details about specific sites will be made available by DOE in its budget justification documents, which are expected to be published in the coming weeks. In the budget overview released today, there are several notable programs that would receive funding increases.

• Office of Environmental Management (EM): $8.3 billion (increase from $8.2 billion)
• National Nuclear Security Administration (NNSA): $23.8 billion (increase from $22.2 billion)
• Office of Science: $8.8 billion (increase from $8.1 billion)
• Office of Legacy Management (LM): $196 million (increase from $190 million)

Environmental Management, Legacy Management, and Justice40 Initiative

The budget includes “$8.3 billion for DOE’s Environmental Management program to support the cleanup of communities used during the Manhattan Project and Cold War for nuclear weapons production. The Budget also provides $196 million for the Office of Legacy Management to ensure cleanup remedies at these sites remain protective of human health and the environment…The Administration would ensure that investments for the cleanup of legacy pollution support the Justice40 Initiative to benefit disadvantaged communities.”

Community Capacity Building Program

In the FY 2023 appropriations, Congress provided $19 million for DOE to develop a Community Capacity Building Program to provide assistance to disadvantaged DOE communities. In the FY 2024 budget request, the White House is proposing “$70 million for Community Capacity Building initiatives in the Office of Environmental Management and the National Nuclear Security Administration (NNSA) for areas of persistent poverty around the Department’s sites.”

Arms Control and Nonproliferation

Regarding nuclear nonproliferation: “The Budget continues to enhance DOE’s expertise, infrastructure, and capabilities needed to reduce nuclear risks and counter the global challenge of nuclear proliferation. As called for in the Administration’s National Security Strategy, the Budget supports DOE’s efforts to secure nuclear and radiological materials and prevent terrorists from acquiring them. The Budget also continues to strengthen the Nation’s capability to respond to nuclear incidents at home and Department of Energy abroad. In addition, the Budget funds the development of more demanding verification technologies as part of an integrated approach to the future of arms control.”

New National Laboratory Proposed at HBCU, Tribal, or Minority Serving Institution

The budget request proposes “$35 million in the Office of Energy Efficiency and Renewable Energy for the initial planning of and a new solicitation for a new laboratory at a Historically Black College and University, Tribal College or University, or Minority Serving Institution.”

What’s Happens Next?

Congress will now begin examining the budget request, holding several hearings over the next month in which Administration officials will testify about the proposed funding levels. Officials such as Ike White (EM), Dr. Katy Huff (NE), Jill Hruby (NNSA), and more are expected to testify on Capitol Hill.

The President’s request marks the first step of the federal budget process. Congress will develop its own funding levels in the appropriations bills this Spring, aiming to pass each bill before the end of the fiscal year on September 30.

According to Congressional leaders, the Senate is aiming to complete its appropriations bills by the end of May. It is an ambitious timeline, as the Senate did not pass any appropriations bills the last two fiscal years. Instead, it has become the norm for Congress to pass a continuing resolution (CR) in September and ultimately pass an omnibus months later.

Appropriations Insights

While some portions of the appropriations bills will meet the President’s requested levels, there is uncertainty about whether a divided Congress will make cuts to important pieces of the budget. As part of an agreement to become House Speaker, Rep. Kevin McCarthy (R-CA) reportedly pledged to cut spending to FY 2022 levels.

As Roll Call noted, “If spending bills for the next fiscal year are capped at fiscal 2022 levels as proposed in the deal, the assumed cuts would slice over $130 billion, or 8 percent, from levels in the recently enacted omnibus spending law.”

Additionally, because defense spending is unlikely to be cut, that could spell even deeper cuts to non-defense spending this year in order to meet the FY 2022 levels. Roll Call explained, “If the entire $131 billion cut back to last year's levels were trained on nondefense accounts, it would mean a nearly 18 percent reduction on average…”

Some pieces of the DOE budget are considered defense spending—including NNSA and DOE national security programs—and could potentially be spared from spending cuts.

As the committees hear from DOE officials about the budget request, ECA will provide updates about how they respond to these questions about potential budget cuts. Subscribe to our ECA Update newsletter at www.energyca.org.