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House Appropriations hears FY26 budget review for Department of Energy and Natural Resources
Summary
The House Appropriations Committee reviewed the Department of Energy and Natural Resources' FY26 executive budget, hearing presentations on funding sources, federal IIJA timing impacts, staffing and program reductions including professional services and offshore wind roadmap funding.
Paige Filia, a fiscal analyst with the House Fiscal Division, presented the Department of Energy and Natural Resources’ executive FY26 budget to the House Committee on Appropriations on April 1, outlining funding sources, staffing and requested changes.
The Department of Energy and Natural Resources is funded largely by federal dollars and statutory dedications, Filia said. She told the committee the department’s largest source of funding is federal grants at about $115.5 million, followed by statutory dedications at about $48.3 million; the department has 364 authorized TO positions and reported 37 vacancies as of Dec. 30, 2024. “Today I will be presenting to you the fiscal year 26 executive budget review for the Department of Energy and Natural Resources,” Filia said.
The nut graf: Committee members probed reductions tied to timing of federal awards, one-time carryforwards and a narrower FY26 spending plan. Lawmakers pressed department officials on travel and security expenses, the status of carbon geological storage funding and cuts to professional services tied to completed or delayed projects.
During Q&A, Dustin Davidson, deputy secretary, and other department staff explained that a recent spike in federal funding (IIJA) boosted FY25 totals and that FY26 shows a net federal decrease as some IIJA grant receipts were delayed. Davidson said field inspection travel and shared security costs (split with the Department of Revenue in shared office space) explain higher travel and security line items. On the carbon geologic storage trust fund, officials said the fund is supported by operator and applicant fees and that the department has repaid earlier state-fronted loans and now funds the program from those fees.
Representative DeWitt and Representative Zareff asked about several program-level reductions. Department officials said a roughly $3.2 million reduction for the offshore wind roadmap reflects changes in federal prioritization and timing, not a program termination: the roadmap remains active but lead times for offshore projects are long. Filia and staff said a $10.9 million general fund reduction largely reflects carryforward funding in FY25 that will not recur.
Committee members also questioned a professional services decrease the department described as removing one-time funding for items such as work related to the Salt Cavern collapse and other short-term contracts. Filia said the department’s recommended FY26 operating budget represents roughly an 11.3% decrease from FY25 existing operating authority.
Ending: The committee requested follow-up details on specific carryforward items, the timeline for IIJA grant receipts, and line-item explanations for travel and security charges. Department staff said they would provide written clarifications to the committee.
