The U.S. Department of Energy (DOE) will fund $237 million for opportunities to expand domestic manufacturing and strengthen supply chains for critical electric grid components. The investment is expected to reduce reliance on foreign suppliers, lower electricity costs and improve grid reliability.

The funding will support projects in two areas:

• Equipment refurbishment and reuse: Up to $50 million will support projects that promote the refurbishment and reuse of existing grid equipment and materials.
• Domestic materials and components: Up to $187 million will support projects that increase the use of alternative materials and subcomponents sourced and manufactured in the U.S. 

The funding opportunity, called Grid Supply Chain Alternatives to Lead Energy Dominance (Grid SCALED), is the first under DOE's Grid Supply Chain Program. The program is authorized to provide up to $375 million to strengthen domestic supply chains for the manufacturing of distribution and power transformers, grid components and materials.

DOE anticipates additional funding announcements in 2027 to strengthen domestic supply chains for next-generation technologies, including solid-state transformers, and promote common equipment configurations to streamline manufacturing.

Applicants must submit a concept paper by Nov. 20, 2026, to qualify to submit a full application. Full applications are due Feb. 8, 2027.

Critical equipment and components

In a recent quote, U.S. Secretary of Energy Chris Wright, said, “President Trump is bringing American industry and manufacturing back home, including the critical equipment and components needed to power our nation. The Energy Department is investing in American-made technologies and modernizing our grid to reduce reliance on foreign suppliers and deliver affordable, reliable, electricity.”

Office of Electricity Assistant Secretary Katie Jereza, added, “America should never have to rely on foreign suppliers to keep the lights on. We’re putting American ingenuity to work, developing next-generation grid technologies that strengthen our domestic supply chain, help lower costs, and make our grid more reliable. The power to secure our energy future should be in our own hands.”