U.S. Energy Department Announces $967 Million for Grid Modernization and Resilience

The U.S. Energy Department on Oct. 20 announced approximately $967 million in additional funding through its Grid Resilience State and Tribal Formula Grant program to modernize electricity infrastructure, improve grid reliability, and help lower electricity costs. The funding will support projects led by states, territories, and tribal governments.

The grants will help local authorities address vulnerabilities in their electricity systems, improve performance, and maintain dependable power supplies during disruptive events. The investment supports President Donald Trump’s energy dominance agenda, which emphasizes strengthening domestic energy infrastructure and ensuring reliable electricity supplies for households and businesses.

The announcement follows DOE’s Oct. 13 initiative to provide $250 million in federal funding for transmission and distribution projects led by the Tennessee Valley Authority across eight states. The projects, estimated at $581 million, including $331 million in applicant cost-share funding, are expected to add approximately 2.5 gigawatts of grid capacity, improve reliability, and reduce outages. In September, DOE also announced plans to provide $1.9 billion in federal funding for 31 grid improvement projects across 26 states under its Speed to Power initiative. The projects are expected to make more than 23 gigawatts of additional electricity capacity available through transmission upgrades and advanced grid technologies.

Together, these initiatives highlight the federal government’s broader efforts to strengthen electricity networks as demand grows. Investments in infrastructure resilience and transmission capacity could help reduce outages, ease grid constraints, and improve the ability of communities and businesses to maintain reliable power supplies.