Congress Throws Possible Lifeline To ENERGY STAR Program

The House Appropriations Committee recently approved the Fiscal Year 2026 (FY26) Energy and Water Development Appropriations Act, a critical legislative measure that sets federal spending priorities for agencies like the Department of Energy (DOE) and the Environmental Protection Agency (EPA). This bill attempts to save the popular ENERGY STAR program within the EPA—an initiative long regarded as essential for promoting energy efficiency across the United States.

The ENERGY STAR program, established in 1992, functions as a voluntary labeling system to help consumers and businesses identify energy-efficient products and buildings. It has been widely credited with saving billions in energy costs and reducing environmental impact. Despite decades of wide bipartisan and industry support, the Trump administration’s FY26 budget proposal sought to eliminate federal funding for ENERGY STAR altogether, signaling its planned phase-out as a federal initiative. The President’s budget zeroed out ENERGY STAR funding, reflecting a broader move to cut back on certain EPA programs and realign federal priorities toward state-level and private sector solutions.

House Appropriations Committee Action

In contrast to the administration’s proposals, the House Appropriations Committee’s version of the Energy and Water Development Appropriations Act includes specific report language ensuring robust continued support for ENERGY STAR. The Committee directed the EPA to allocate at least $32 million for the program in FY26, directly opposing the White House’s attempt to eliminate its funding. Committee leaders emphasized that—despite fiscal constraints—investments in national security, energy production, and proven environmental programs like ENERGY STAR remain a priority.

Senate Position and Legislative Outlook

The Senate’s version of the appropriations bill goes further, placing a binding requirement of $36 million for the ENERGY STAR program if the bill passes as written. This binding Senate language would force the administration to fund ENERGY STAR regardless of executive branch intentions. Legislative advocates argue this move is necessary, both to preserve the benefits of the program and to ensure continuity for businesses, consumers, and local governments relying on ENERGY STAR certification and resources.

Industry and Legal Perspectives

The potential elimination of ENERGY STAR prompted strong reactions from industry stakeholders, state governments, and lawmakers. The program’s supporters cite data indicating every dollar invested has saved American families and businesses almost $350 in energy costs, preventing substantial greenhouse gas emissions and lowering utility bills nationwide. Many also argue that terminating the program would violate statutory mandates, given ENERGY STAR’s protection under federal law via the Energy Policy Act of 2005.

Broader Implications

Should Congress succeed in preserving or increasing funding, ENERGY STAR will continue to drive energy savings, climate benefits, and market transparency. Failure to act could risk transferring responsibility for energy efficiency standards to the private sector or state agencies, ending decades of federal leadership in efficiency labeling.

Congress’s FY26 Energy and Water Development Appropriations Act marks a pivotal moment for ENERGY STAR. The House Committee’s $32 million directive, and the Senate’s proposed $36 million, stand in sharp contrast to administration attempts to end federal support for the program, underscoring congressional intent to sustain energy efficiency progress in the United States.

More information is available here.

Special thanks to Mark Lien.