Shutdown Enters Second Week, DOE Opens $625M Opportunity

The B.L.U.F. (Bottom Line Up Front): 

• The federal government is officially shut down after Congress failed to pass a new budget before the October 1st expiration. While negotiations are currently ongoing in the Senate, it is likely the shutdown will continue through at least this week.

• The Department of Energy announced a $625 million investment for new projects and has a new funding opportunity to support mining technologies.  

• The Department of Labor awarded funds for investment in skills training. 

• The Department of Education has released new grant priorities, highlighting career education opportunities.  

FUNDING POLICY NEWS

Federal Government Shutdown 

The government is in shutdown after Congress failed to pass a continuing resolution (CR). While Congress continues to meet, there seems to be no clear path towards reopening the government at this time. As a result of the shutdown, program managers and agencies' contacts will be inaccessible, and there will be delays in reimbursements for awardees. There will also be no new funding opportunities released during the shutdown. Agencies have released contingency plans outlining which services remain available.  The White House is pressuring Democrats to vote on the Republican-drafted CR by threatening massive layoffs. The Office of Management and Budget (OMB) Director Russell Vought has called on agencies to use this time to permanently reduce their workforces by conducting massive layoffs for any non-essential workers. 

CFS Note: Applicants should continue to meet deadlines and adhere to application due dates. Portals remain operational during a shutdown, so application submission continues. Use this time to prepare for future opportunities by organizing frequently used materials to best prepare for upcoming applications.  

See agency contingency plans here. 

See more information from OMB here. 

AGENCY UPDATES

DOE Terminates 223 Projects over $7.5 Billion in Awarded Funds 

On Thursday, DOE announced the termination of 321 financial awards supporting 223 projects, resulting in a cancellation of approximately $7.56 billion in awarded competitive funds. These cancellations followed an announcement made in May by Secretary Wright that directed the Department to conduct financial reviews of funding programs and awards. According to the announcement, DOE determined that these projects did not adequately advance the nation’s energy needs, were not economically viable, and would not provide a positive return on investment of taxpayer dollars. CFS has been provided with the list of canceled projects; anyone inquiring about specific projects should contact CFS directly.  

See more information here. 

Education Department Announces Two New Funding Priorities 

The Department of Education released two proposed agency priorities for its funding programs. The first priority, Workforce Readiness, focuses on increasing meaningful learning opportunities, with an emphasis on math education. The second proposed priority, Career Pathways, focuses on providing workforce-training programs aligning with state priorities, career advising, tools to help students and graduates find jobs, and “opportunities for students to use financial tools to compare the cost and benefits of the career options and educational pathways they are considering.” 

See more information here.

FUNDING OPPORTUNITIES AND AWARDS

DOE Releases NOI for Mining Technologies

The Mine of the Future - Proving Ground Initiative aims to de-risk the adoption of new mining technologies for commercialization and widespread industry adoption. The program has two topic areas: accelerated R&D projects and collaborative partnerships. Funding will be awarded to projects that enable the development, demonstration, and maturation of advanced mining technologies at a large scale for deployment at domestic mine sites. Proving ground test beds are expected to be constructed during the first two years. Applications are due November 5, 2025.

Learn more about the opportunity here.  

DOE Announces $625 Million for Coal Industry Projects

Last Monday, the Department of Energy opened a $525 million opportunity to support coal-fired power generation assets. The Coal Recommissioning and Modernization program provides $350 million for coal recommissioning, retrofit or modernization projects and $175 million to support coal generation projects in rural areas. There are two additional opportunities for fuel-switching retrofits and natural gas co-firing systems ($25 million each) that will soon publish guidance.  

This opportunity stems from the Executive Order signed in January declaring a national energy emergency. While the coal industry has been an early darling of the Trump 2.0 Administration, it is unlikely we will see additional rounds of funding for these projects. 

CFS Takeaway: The deadline for applications is November 11th, keeping in line with the new trend of 6-week application windows. Applicants should expect similar application windows for future grant programs.  

Learn more about the opportunity here.

DOL Awards $86 Million to 14 States for Skills Training Programs in Emerging Industries

On Tuesday, the Department of Labor awarded more than $86 million in Industry-Driven Skills Training Fund grants to 14 states to accelerate innovation, strengthen domestic production, and address critical workforce needs across the country. Of the funding, more than $20 million will support the revitalization of the domestic shipbuilding industry, training workers in welding, marine electrical, manufacturing, and other skilled trades. 

Learn more about the awards here. 

Looking Ahead

CFS will continue to monitor the federal government shutdown and continued negotiations in Congress. Of particular interest are potential personnel actions from OMB and the effects of any permanent reductions in force that may reshape agencies. CFS will also continue to watch for potential canceled funding that the shutdown might cause.