2025 has been a year of recalibration across federal funding programs, with notable changes in energy reliability, critical minerals, and health research.
We also saw the expiration of Small Business Innovation (SBIR) and Small Business Technology Transfer (STTR) programs, which has delayed funding for awardees and potential applicants alike.
Leyton’s Grants Team has analyzed how these trends have impacted strategy for applicants, and what changes we can expect to see in 2026.
Department of Energy (DOE)
The DOE took a brief recess from releasing grants in 2025, with their first grant of the year announced in August.
The funding opportunity was primarily focused on exploring magnetic materials with superior properties for use in certain energy applications such as EVs, wind turbines, and motors.
They quickly followed up with more major initiatives, including a $134 million NOFO for a Rare Earth Elements (REE) Demonstration Facility1 to design and operate a single-site processing line for domestic REE supply.
They also issued a $525 million Broad Agency Announcement to recommission and modernize coal-fired assets2 to address urgent grid reliability challenges following Executive Order 14156.
Additional planned funding includes $500 million for battery materials processing and recycling, $275 million for critical minerals recovery from industrial byproducts, and $80 million for innovative mining technologies under the Mine of the Future program3.
While most of these opportunities expire in January 2026, given the Trump administration’s interest in bolstering the domestic energy supply-chain and decreasing foreign dependency, similar opportunities are expected to open in the upcoming months.
Department of War (Previously the Department of Defense) (DOD)
To keep up with the push towards Artificial Intelligence, the DOD funded several projects utilizing machine learning4,5. The DOD’s Congressionally Directed Medical Research Programs also allowed researchers to study topics ranging from traumatic brain injuries to kidney cancer.
Despite SBIR/STTR expiring this September, the DOD has also released topics for 2026. Notable ones include Li-ion 6T Batteries, manufacturing for chemical, biological, radiological, and nuclear (CBRN), and microphysical systems to assess pretreatment immunogenicity6.
These priorities also align with the DOE’s parallel efforts to strengthen domestic energy and technology supply chains, reflecting the administration’s broader push to reduce foreign dependence in critical sectors.
This cross‑agency alignment underscores a coordinated federal strategy to bolster U.S. manufacturing capacity and secure key materials essential for defense and energy resilience.
Department of Health and Human Services (HHS)
In 2025, federal health research funding reflected uneven momentum and tighter budgets, with ARPA‑H experiencing a slowdown early in the year before reopening in September with bold solicitations targeting monumental concepts such as precision genetic medicines for hereditary rare diseases, smart obstetrics care, biostabilization systems, autonomous interventions, and individualized genetic manufacturing.
The National Institute of Health (NIH) continued to fund critical areas but under a leaner climate, prioritizing human-based research over animal models and sustaining opportunities in substance use, cancer nanotechnology, and Alzheimer’s disease through multiple FOAs.
Despite these active programs, overall grant volume declined compared to prior years, as highlighted by recent analyses of federal science funding cuts and shifting distribution patterns.7
Success increasingly depends on aligning proposals with translational potential, measurable public health impact, and innovative approaches that meet emerging priorities in maternal health, neurodegeneration, and addiction.
Environmental Protection Agency (EPA)
In 2025, the EPA has undergone major cuts in both funding and staffing, including EPA Administrator Zeldin’s pledge to reduce 65% of total agency spending and the elimination of more than 3,700 staff positions as part of a broader restructuring.
Congress has also considered additional reductions, with House proposals aiming for a 23% budget cut, further shrinking the agency’s capacity.
In addition, the EPA terminated roughly $20 billion in Greenhouse Gas Reduction Fund grants, signaling a shift away from climate‑focused programs and toward priorities more aligned with Trump’s pro‑industry agenda8.
Currently, most existing opportunities are centered on brownfield assessment grants, alongside limited initiatives for recycling and tribal land projects.
Compared to previous years, the agency released significantly fewer solicitations, reflecting an overall reduction in environmental funding. Applicants faced heightened competition for these smaller pools of resources, making readiness and strong community partnerships critical for success in securing EPA support.
However, brownfield grants are often beneficial to companies who are interested in opening a new office or manufacturing plant9.
The EPA has historically given awards for brownfield assessments, cleanup, job training, and technical assistance.
U.S. Department of Agriculture (USDA)
In 2025, the USDA continued to prioritize rural economic resilience through programs that strengthen local food systems and agricultural innovation, with the Value-Added Producer Grant (VAPG) remaining a cornerstone of this initiative.
VAPG funding supported farmers and ranchers in developing new products, expanding processing capacity, and accessing markets, helping producers capture more of the consumer dollar and diversify revenue streams.
Alongside VAPG, USDA sustained investments in renewable energy through REAP, community facilities, and climate-smart agriculture pilots, reinforcing its commitment to rural infrastructure and sustainability.
These programs collectively aim to boost competitiveness, create jobs, and foster long-term viability for agricultural enterprises in an evolving market landscape. It is anticipated that these programs will continue to be funded in 2026.
Leyton has worked extensively with the VAPG previously and is soliciting applicants interested in assistance; the application deadline for 2026 is April 15th.
Department of Transportation (DOT)
The DOT continues to channel significant funds to safety, state-of-good-repair, andcapacity through BUILD (Better Utilizing Investments to Leverage Development), INFRA (freight/mega-projects, Safe Streets and Roads for All (SS4A), and Mega/Bridge Investment Programs10.
We do not expect major changes within the DOT and have already seen a reissue of BUILD.
Note that these are typically open to state or local governments, but Leyton encourages private investors to collaborate with local and state governments, as a private entity may serve as a subawardee on many DOT opportunities.
What This Means for Applicants
These shifts in federal funding programs have several implications for prospective applicants:
- Energy & Materials Are Ascendant: DOE’s 2025 posture strongly favors grid reliability, critical minerals, and battery supply chains, with large-ticket awards for near-commercial demonstrations. Begin discussions with potential clients, collaborators, and permitting organizations early to increase the likelihood of receiving funding.
- Health Funding is More Selective: NIH/ARPA‑H pathways prioritize human-based models, precision, automation, and scalable manufacturing—with fewer awards overall; quality and translational impact matter more than ever.
- EPA Openings Are Narrower: When available, brownfields assessments remain actionable. However, the standard application window for these opportunities remains relatively short; begin assessments and planning early to ensure information is prepared in advance of any funding opportunity announcements.
- USDA & DOT Are Reliable Anchors: For rural and transportation projects, focus on resilience and cost-effectiveness, with pre-development work (NEPA, match, partnerships) largely deciding competitiveness.
Unlock more federal funding opportunities for your business by contacting our experts today.
