Post-OBBBA: What’s Next for the Loan Programs Office

US Department of Energy loan programs help companies develop and launch new technologies faster, ensuring that American technology can lead the market. By providing low-cost financing, loan programs catalyze new critical infrastructure projects to be built faster and more affordably.

In recent years, the Department of Energy’s Loan Programs Office (LPO) emerged as one of the federal government’s most effective tools for closing critical financing gaps in the energy market. By offering long-term, low-cost capital for energy projects that private lenders are often unwilling or unable to finance, LPO has helped move advanced technologies for nuclear energy, critical materials, and fossil fuels from pilot stage to large-scale deployment—building new critical infrastructure, creating jobs, and strengthening US competitiveness. After significant expansion and renewed momentum under the previous administration, the Office was on track to drive billions in investment into clean firm power, grid modernization, and other critical energy assets.

The Trump Administration has brought that progress to a crawl. Since inauguration day, LPO has lost experienced staff, faced sharp funding cuts, and seen major programs upended. The recently passed One Big Beautiful Bill Act (OBBBA) compounded the contraction. Meanwhile, the Office has launched a sweeping series of “portfolio reviews” to ensure projects align with the administration’s new policy priorities, leaving LPO’s active and potential pipeline in gross uncertainty. Without an effective and robust LPO, many critical energy projects will either fail to get off the ground or will become significantly more costly to American ratepayers. This memo takes a closer look at how OBBBA reshaped the office’s mandate—and outlines the urgent steps needed to put LPO back into action so it can deliver catalytic financing to projects serving America’s booming energy demand.

The table below outlines how the Department of Energy's loan programs have evolved, from the Energy Policy Act of 2005 through the One Big Beautiful Bill Act of 2025:

How Can LPO Move Forward?

LPO has been impaired by the OBBBA. Key programs that once bridged critical financing gaps—such as the Advanced Technologies Vehicle Manufacturing Program–are now near defunct due to funding rescissions. The 1703 program—vital for driving supply chain innovation and keeping US industries competitive—has significantly reduced subsidy to catalyze new deals and faces a ticking clock on $40B in loan authority received in the IRA. Meanwhile, the 1706 program—rebranded as the “Energy Dominance Financing” Program—has shifted away from supporting a broad range of leading American technologies in favor of nuclear energy and new fossil fuel projects, both upstream and downstream.

This pullback is happening at exactly the wrong moment. The US is facing its most urgent infrastructure deployment gap in decades, and this retrenchment flies in direct contradiction to the Trump Admin’s goals. The Admin’s May 2025 executive order directs LPO to prioritize financing to restart closed nuclear plants, boost output at operating units, and complete suspended projects—ultimately to finance 5 GW of expanded capacity and 10 new large reactors by 2030. Yet, President Trump and his leaders have pushed a federal budget and rescissions agenda that eliminated nearly 75 percent of the Office’s funding and aims to slash its staff capacity. In effect, the White House has set bold deployment targets while constraining the only federal program capable of mobilizing the capital to meet them. Without immediate action to address these pressures and restore confidence in the Office, LPO’s potential will remain limited.

Despite these strategic shifts and rescissions, it's too early to write off LPO. The Office still has the staff capacity and loan authority to support a wide-range of critical energy projects, and should do so to the fullest extent. DOE can act immediately to reassert its commitment to LPO’s mission by finalizing conditional deals, clarifying processes and expanding applicant engagement. Even Congress, complicated by tensions over specific programs and deference to the Administration, has an urgent role to play in ensuring LPO has the resources and authorities it needs to operate long-term and with accountability.

Here’s how DOE and Congress can begin to put the Office back into action and on the path to driving market success:

The Department of Energy Should:

• Publish an interim final rule for Title 17 to jumpstart market engagement. Currently, applicants don’t know what new regulatory changes to expect from LPO's programs. DOE should issue an interim rule aligning current regulations with the new statute, signaling to applicants and investors that the Office is open for business and ready to partner on new infrastructure deals while longer-term guidance is developed.
• Release updated 1706 program guidance ASAP. Guidance documents outline the eligibility, application process, and requirements for each loan program. Clear, revised guidance for the “Energy Dominance Financing” program should be released promptly, adopt a streamlined single-phase application, and set measurable performance goals to deliver conditional commitments within 12 months—demonstrating LPO’s commitment to efficiency and market responsiveness.
• Reinstate a working Credit Review Board. No LPO transaction can proceed without approval from the Credit Review Board (CRB) made up of senior DOE officials from outside LPO. However, since President Trump’s inauguration in January, the CRB has functionally deactivated–stalling all pending applications. DOE must restore the CRB without delay, clear the existing project pipeline, and scale the application process to get projects moving.
• Expand DOE business development with states and market actors. Most new projects start at the State and local level. Redoubled outreach to State Energy Financing Institutions (SEFIs) and non-state investors can unlock co-financing for developing and shovel-ready projects. DOE should also actively brief industry on new program authorities and eligibility requirements to accelerate deal flow.

Congress Should:

• Reject proposals that further rescind credit subsidy from LPO in FY26 appropriations and any other legislative packages. Further rescissions could jeopardize LPO’s ability to exercise its existing loan authority and impair programs' abilities to support the market.
• Increase Title 17 credit subsidy in upcoming appropriations packages for all eligible technologies. The House FY26 bill would increase appropriations for LPO’s 1703 program by $150 million to be available for nuclear projects exclusively. However, any increases should be technology neutral so that the Department maintains flexibility to leverage this funding for other critical infrastructure projects like geothermal and transmission. The Senate has the opportunity to address this issue in their upcoming FY26 bill.
• Provide a dedicated Program Direction line in future appropriations for LPO. Currently, the office’s Admin expenses are covered through appropriated funding for each program. Instead, Congress should provide consistent funding for program direction for the entire office, similar to other DOE offices. This change would eliminate the impact of admin expenses on each appropriated program and Congress could allow LPO to apply collected fees from programs to offset program direction, as needed.
• Extend loan authority for LPO’s Title 17 programs. The OBBBA extended loan authority for the revised 1706 program through FY2028, yet, IRA-provided loan authority for the 1703 program will expire on September 30, 2026. Long-term certainty in both programs is critical for deploying new critical infrastructure. Congress should extend Title 17 program authorities through 2033—aligning them with the 45Y and 48E tax incentives—to provide consistent, predictable financing signals and ensure market stability for project developers and investors.
• Direct DOE to reinstate transparency in portfolio activities. Restoring clear, consistent reporting will enable effective Congressional oversight and rebuild accountability within the office. DOE should resume publishing Monthly Application Activity Reports (MAAR) for each program’s application progress and pipeline—a practice that ended in September 2024—to provide stakeholders with timely, accurate insight into LPO’s work.

Conclusion

The US should be strengthening, not weakening, its federal infrastructure financing programs. Without a course correction, American technology firms will struggle to meet the nation’s energy challenges, launch new technologies, and compete globally. LPO had long been an underleveraged asset, but the previous administration greatly expanded its potential, and—just as it was reaching record performance in efficiency—the current administration has pulled back on the reins. Despite these setbacks, LPO can maintain its role as an effective tool to address market gaps, particularly those that make it nearly impossible to privately finance advanced energy projects like nuclear, geothermal, and carbon capture and innovative storage.

As Secretary Wright noted, when LPO is used judiciously, it's a way to leverage private capital to make things happen fast. If President Trump truly wants to “unleash American energy,” his Department of Energy and Congressional leaders must act quickly—making the shifts necessary to reposition LPO for success and implementing a technology-neutral approach that supports new critical energy projects capable of meeting the nation’s growing energy demands.