The United States opened a $237 million funding opportunity on Oct. 30 to expand domestic manufacturing of electric grid equipment and strengthen supply chains, the U.S. Department of Energy said.
The announcement was titled “Energy Department Announces Over $230 Million Funding Opportunity to Strengthen America's Grid Supply Chain and Lower Electricity Costs.” The department published it on Oct. 30.
The funding is the first opportunity under the department's Grid Supply Chain Program, which is authorized to provide up to $375 million for domestic manufacturing supply chains. That program covers distribution and power transformers, other grid components and materials, the department said.
The department estimated that the investment would deliver $125 million in annual utility savings. It also estimated that $50 million a year would stay in the U.S. economy instead of going to foreign suppliers.
Those amounts are projected benefits of the investment, rather than savings already achieved. The department linked the funding to efforts to reduce dependence on imported equipment and improve the reliability of electricity supplies.
The department said it would encourage projects that refurbish and reuse critical equipment. It would also encourage manufacturers to adopt alternative materials and smaller components sourced and made in the United States.
The department said those changes would help lower costs and support reliable electricity supplies for households and businesses. It also said the investments would help the grid meet growing electricity demand.
Energy Secretary Chris Wright said the department was investing in American-made technology and modernizing the grid to reduce reliance on foreign suppliers. He linked the funding to President Donald Trump's efforts to bring manufacturing back to the United States.
“America should never have to rely on foreign suppliers to keep the lights on,” said Katie Jereza, assistant secretary for the department's Office of Electricity. She said developing new grid technologies would help strengthen domestic supply chains, lower costs and improve reliability.
The department expects to announce additional funding in 2027 for domestic supply chains serving newer technologies, including solid-state transformers. It also plans to promote common equipment configurations to simplify manufacturing.
Applicants must submit an initial proposal, called a concept paper, by Nov. 20 to qualify to submit a full application, the department said. Full applications are due Feb. 8, 2027.
