Energy Star targeted for elimination

Summary

In May 2025 EPA prepared to eliminate the divisions running Energy Star, the voluntary efficiency-certification program operating since 1992, and the President's budget zeroed out its funding. The elimination did not proceed: Congress funded the program and management is being transferred to the Department of Energy.

What happened

On May 6, 2025, EPA prepared to eliminate the divisions running Energy Star, the voluntary efficiency-certification program operating since 1992, and the President's budget zeroed out its funding. The Alliance to Save Energy said that for about $32 million a year, Energy Star helps American families save over $40 billion in annual energy costs. Industry groups, including the U.S. Chamber of Commerce, urged EPA to keep it. The program was ultimately preserved, not eliminated: Congress provided $33 million in FY2026 funding for Energy Star, and on March 3, 2026, EPA and DOE signed a 10-year Memorandum of Agreement transferring primary management of the program from EPA to DOE (with a transition plan due within 90 days).

Impact on the United States

The threatened elimination of the efficiency label, which the Alliance to Save Energy says helps American families save over $40 billion a year in energy costs, was averted; the program continues under DOE management.

Documented effects

1. May 2025The Alliance to Save Energy said the program, costing about $32 million a year, helps families save over $40 billion annually[1]
2. President's budget zeroed out Energy Star funding[3]
3. Industry groups, including the U.S. Chamber of Commerce, urged EPA to keep the program[2]
4. Mar 2026Energy Star was preserved: Congress provided $33 million in FY2026 funding, and a March 3, 2026 EPA-DOE Memorandum of Agreement transferred management to DOE under a 10-year agreement (transition plan due within 90 days) rather than eliminating the program.[4][5][6]

Why this is rated significant

Threatened to scrap a low-cost efficiency label that, per the Alliance to Save Energy, saves households over $40 billion a year; the elimination was averted.

program preserved; Congress funded Energy Star $33M for FY2026, and a March 3, 2026 EPA-DOE agreement transfers management to DOE rather than eliminating it

Corrections & updates [3]

Every change to a fact on this page after publication is logged here, newest first.

1. Sep 29, 2026ClarifiedKey facts

   The claim that Energy Star costs about $32 million a year and saves families more than $40 billion comes from Paula Glover, president of the Alliance to Save Energy, as quoted by CNN. It is now attributed to her group. The objections documented in the sources come from industry groups, including the U.S. Chamber of Commerce. No cited source mentions senators. Under the EPA-DOE agreement, a transition plan is due within 90 days; the transition itself is not set at 90 days.[1][2][6]

2. Sep 29, 2026CorrectedSource

   The CNN article's headline is "Energy Star program is on the chopping block, sources say." The LightNOW post is dated March 17, 2026. It is a lighting-industry trade blog, so it is labeled Tier 3.[1][5]

3. Sep 29, 2026ClarifiedUS impact

   The US-impact text said consumer energy costs, electricity demand and emissions would have risen had the program been scrapped. No cited source makes that projection; it is removed.[1][6]

   + Show previous and current text- Hide previous and current text

   Previously

   The threatened elimination - which would have removed a trusted efficiency label that lowers household and business utility bills - was averted; the program continues under DOE management. Had it been scrapped, consumer energy costs and electricity demand and associated emissions would have risen.

   Now

   The threatened elimination of the efficiency label, which the Alliance to Save Energy says helps American families save over $40 billion a year in energy costs, was averted; the program continues under DOE management.

Sources [6]