Federal research labs managed by the Department of Energy could potentially institute job reductions due to budgetary reductions
The proposed Department of Energy (DOE) budget for 2026 has raised concerns among employees and supporters of the National Renewable Energy Laboratory (NREL) and Pacific Northwest National Laboratory (PNNL), as both labs are reportedly considering significant layoffs due to steep funding reductions.
According to reports, NREL could let more than 1,000 people go, with its budget proposed to drop from $686 million to $299 million. Similarly, PNNL is considering laying off around 1,100 employees, as its budget is proposed to decrease from $829 million to $548 million.
These cuts stem from a proposed $1.4 billion reduction in the DOE budget, with deep cuts to the Office of Energy Efficiency and Renewable Energy (EERE) and the elimination of the Office of Clean Energy Demonstrations. This reduction drastically slashes support for renewable energy programs, which forms a significant part of NREL’s and PNNL’s funding bases.
Sen. Ben Ray Luján, D-N.M., co-chair of the Senate National Labs Caucus, has expressed his concerns about these cuts. He wrote to President Trump on Wednesday, asking him to reconsider the proposed cuts to EERE, DOE's Office of Science, and the Advanced Research Projects Agency. Luján cited DOE data, stating that EERE has been responsible for more than $624 billion in net economic benefits, contributing to U.S. energy bill reductions of over $800 billion since 1980.
DOE spokesperson Ben Dietderich noted that most national labs are operated by third-party contractors and have discretion with personnel decisions. However, he could not confirm anonymously leaked 'estimations' of layoffs made by these contractors.
Heather Lammers, a public and media relations manager at NREL, confirmed that the lab is currently working with the Department of Energy to understand the impacts of the FY25 spend plan, which is part of the president's megabill.
The proposed budget cuts have also been met with opposition from groups such as Friends of PNNL, who made a statement on July 14, stating that more than 1,000 people at PNNL could lose their jobs under the proposed budget.
The Department of Energy is committed to making the American government more efficient while growing the output of top-quality science at national labs. However, the impact of the proposed budget cuts on jobs at NREL and PNNL in 2026 is severe, with each lab facing possible layoffs of approximately 1,000 workers due to steep funding reductions.
The FY26 appropriations process is continuing to move forward, and it remains to be seen whether these proposed cuts will be finalised.
In the face of these proposed budget cuts, personal-finance concerns are escalating for over 1,000 employees at both the National Renewable Energy Laboratory and Pacific Northwest National Laboratory, as their jobs may be affected by the steep funding reductions in the energy industry. The proposed budget cuts across various departments under the Department of Energy, notably the Office of Energy Efficiency and Renewable Energy, could potentially lead to finance difficulties in budgeting for these labs in 2026.
