Critical Minerals Take Center Stage in Trump’s FY27 Budget Request

On April 3, President Donald Trump unveiled his fiscal year (FY) 2027 budget request, the second of his presidency. The proposal calls for $2.18 trillion in total discretionary funding: $1.5 trillion for defense operations (an increase of $445 billion compared to current levels) and $660 billion for non-defense activities (a decrease of $73 billion). For defense spending, the president’s budget includes $1.1 trillion in base discretionary budget authority and a $350 billion supplemental request through budget reconciliation.

Rooted in the administration’s “America First” agenda, the budget underscores that critical mineral investments remain central to the administration’s energy dominance policy. Below, we explore the administration’s proposed funding for critical minerals for FY27 across the departments of energy, interior, war and state.  

Department of Energy

For the Department of Energy (DOE), the White House is requesting $53.9 billion in discretionary budget authority, a $4.8 billion or nearly 10% increase from the 2026 enacted level. Of that total, $32.8 billion is allocated to the National Nuclear Security Administration. The remaining $21.1 billion in funding for DOE’s energy programs represents a $2.7 billion or 11% reduction compared to FY26 levels.  

The FY27 budget request positions DOE to remain a central agency in advancing the Trump administration’s mineral dominance agenda, particularly within the United States. It provides $1.1 billion to DOE’s newly established Office of Critical Minerals and Energy Innovation (CMEI)—formerly the Office of Energy Efficiency and Renewable Energy—to accelerate domestic mining activities, diversify critical minerals supply chains, expand research in batteries and magnets, and facilitate the recycling of battery materials and other critical minerals. Recently, CMEI announced a $500 million funding opportunity through DOE’s Battery Materials Processing and Battery Manufacturing and Recycling programs to increase U.S. processing and manufacturing capacity for strategic batteries and components.  

The budget request also maintains funding for critical minerals and materials work at DOE’s Office of Science and the Advanced Research Project Agency-Energy, despite both entities facing significant budget cuts in areas that are of lower priority to the administration.  

Department-wide, the president’s budget requests an additional $394 million for domestic critical mineral activities, including pilot-scale production and processing demonstrations to onshore and derisk critical mineral supply chains. Further details on how the administration intends to use these funds are expected in the coming weeks; more information can be accessed in DOE’s Budget in Brief.

Department of the Interior

Within the Department of the Interior (DOI), the administration is proposing to eliminate “woke” climate programs and “bureaucratic bloat” to refocus the department on critical minerals development and fulfill the president’s energy dominance agenda by opening up more federal lands and waters for oil, gas and clean coal development. Additionally, the department will eliminate upwards of $45 million in renewable energy programs to align with a fossil-fuel-dominant energy strategy.

Of the $15.9 billion topline request for the DOI, the president’s request includes $208 million for the Energy and Minerals Management Program under the Bureau of Land Management, maintaining FY26 levels. The program provides funding for onshore oil, gas, coal and geothermal energy, as well as other leaseable minerals and mineral materials activities.  

In addition, the president’s request provides $42.7 million for Mining Law Administration pursuant to the General Mining Law of 1872, including validity examinations, patent application reviews, enforcement of environmental and bonding requirements, and recordation of mining claims.

Notably, according to a White House Fact Sheet, the budget request proposes a strategic reunification of the Bureau of Ocean Energy Management and the Bureau of Safety and Environmental Enforcement into a single bureau, the Marine Minerals Administration, to “better align with the Department’s mission, streamline governance of offshore energy and mineral resources, and deliver greater value to the American public.” This reflects the department’s intent to increase efficiencies across “offshore leasing, permitting, inspections and environmental oversight while maintaining all existing regulatory protections and rigorous safety standards,” according to a DOI press release.

Department of State

For the Department of State and related international programs, the White House is seeking $35.6 billion in discretionary budget authority for FY27, which is $15.5 billion, or 30%, below the FY26 enacted level. Of that amount, $33.6 billion would go to the Department of State, representing a $13.9 billion, or 29%, reduction from FY26 enacted levels.

At the same time, the budget elevates critical minerals within the Trump administration’s broader foreign policy toolkit. It requests $5 billion for the America First Opportunity Fund (A1OF), which the administration describes as a vehicle to advance “core national security interests,” including efforts to secure critical mineral supply chains and push back on rival powers. That figure is well above the president’s FY26 request of $2.9 billion for the fund, while Congress ultimately appropriated $850 million for the A1OF in the final FY26 State-Foreign Operations bill.

The State Department section also references nearly $13 billion in financing and other resources to “rebuild and secure the critical mineral supply chains,” but the text makes clear that this amount is not limited to State Department activities and instead reflects proposed support spread across multiple departments and agencies. Part of that funding could potentially be directed toward the Pax Silica Fund, launched on March 26, which the State Department said would work with Congress to allocate $250 million in foreign assistance to back projects tied to “critical minerals extraction, processing, critical infrastructure, and manufacturing assets” to support secure semiconductor supply chains.

Furthermore, the State Department’s Budget in Brief suggests that the administration is likely to use a mix of foreign assistance and development finance tools to advance critical minerals objectives overseas. These tools are expected to include the U.S. International Development Finance Corporation (DFC), which requested more than $803 million, including $560 million in program funds; the Export-Import Bank of the United States (EXIM), which is funded through receipts from fees, premiums, interest and other payments; and the U.S. Trade and Development Agency (USTDA), which requested $77 million.

Department of War

For the Department of War (DOW), the White House is seeking $1.5 trillion in total budgetary resources for FY27, which is $441 billion, or 44%, above the FY26 enacted level. Of that amount, $1.1 trillion would be provided through base discretionary budget authority, while a separate $350 billion request would fund additional priorities, including expanded access to munitions and the defense industrial base.

The FY27 budget request indicates that the administration intends to expand DOW support for critical minerals and related domestic supply chains. The budget states that, consistent with Executive Order (E.O.) 14241, “Immediate Measures to Increase American Mineral Production,” the request “dramatically expands DOW investment in critical minerals and domestic critical mineral supply chains.” It further states that the added funding would address “longstanding shortfalls” in the National Defense Stockpile and allow the Industrial Base Analysis and Sustainment program to make larger investments in the domestic critical minerals sector. According to the request, these investments are intended to reduce dependence on foreign mineral production and help secure an affordable and predictable supply of minerals needed for next-generation defense technologies.

The FY27 appendix also points to a potentially significant Defense Production Act (DPA) financing component. For the DPA Purchases account, the appendix shows a regular FY27 request of $477 million in budget authority, along with a much larger $29.954 billion legislative proposal subject to (Pay-As-You-Go (PAYGO), for a total of $30.431 billion in FY27 budget authority. Critical minerals projects have previously received support through DPA Title III authorities, and this proposed increase may signal additional support for such projects through that mechanism. More detailed budget request materials for the DOW are expected later this month.

Next Steps

Maintaining its commitment to mineral dominance, the Trump administration is proposing billions of dollars in funding for critical minerals to strengthen domestic supply chains and reduce U.S. reliance on foreign sources. While the budget appendix outlines potential uses of these funds—such as pilot-scale demonstrations, research and development efforts, offtake agreements, and bilateral frameworks with allied nations—additional clarity is expected once cabinet secretaries testify before the relevant jurisdictional and appropriations committees.  

With the release of the president’s budget request, the Trump administration is formally kicking off the FY27 appropriations process. Congress is under no obligation to adopt all or any of the request as it is purely meant to outline the administration’s priorities and recommended revenue levels. As the congressional budget process moves forward, Brownstein’s Critical Minerals Team can assist those with questions or concerns.  

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THIS DOCUMENT IS INTENDED TO PROVIDE YOU WITH GENERAL INFORMATION REGARDING THE CRTICAL MINERAL ASPECTS OF THE PRESIDENT’S FY 2027 BDUGET. THE CONTENTS OF THIS DOCUMENT ARE NOT INTENDED TO PROVIDE SPECIFIC LEGAL ADVICE. IF YOU HAVE ANY QUESTIONS ABOUT THE CONTENTS OF THIS DOCUMENT OR IF YOU NEED LEGAL ADVICE AS TO AN ISSUE, PLEASE CONTACT THE ATTORNEYS LISTED OR YOUR REGULAR BROWNSTEIN HYATT FARBER SCHRECK, LLP ATTORNEY. THIS COMMUNICATION MAY BE CONSIDERED ADVERTISING IN SOME JURISDICTIONS.