FY 2027 President’s Budget: Key takeaways related to mining, critical minerals, and rare earth elements

Each spring, the Executive Branch transmits the President’s Budget to Congress, setting forth the current administration’s funding priorities and policy goals for the upcoming fiscal year (FY). The Trump Administration’s FY 2027 President’s Budget, released on April 1, 2026, signals a shift in federal energy and minerals policy, proposing increases in funding for domestic mining, critical minerals production, rare earth element processing, and supply chain security. 

The President's Budget, which spans multiple federal departments and agencies, supports Executive Order 14156, “Declaring a National Energy Emergency,” Executive Order 14154, “Unleashing American Energy,” and Executive Order 14241, “Immediate Measures to Increase American Mineral Production.” Across the federal government, the President's Budget proposes nearly $13 billion in financing and dedicated resources to rebuild and secure critical mineral supply chains.

Office of Critical Minerals and Energy Innovation

In November 2025, the United States Department of Energy established the Office of Critical Minerals and Energy Innovation (CMEI). The FY 2027 President's Budget requests approximately $1.122 billion for CMEI, reflecting a focus on initiatives related to critical minerals and advanced materials and manufacturing technologies.

The FY 2027 President's Budget requests $364 million for the Office of Advanced Mining and Mineral Production Technologies (AMMPT) within CMEI, representing an increase of $281 million over the FY 2026 enacted level. The request includes funding for the following AMMPT initiatives:

• Commercial-scale processing of critical minerals and materials. Approximately $100 million is allocated to support projects aimed at expanding domestic manufacturing capacity for essential materials and products in the US.
  
  
• Rare earth element and critical mineral large-scale pilot projects. Approximately $75 million is allocated for a new program to advance large-scale pilot projects capable of producing rare earth elements and other critical minerals at scale.
  
  
• METALLIC Supply Chain User Facility. Approximately $70 million is allocated to support the development and commercialization of technologies related to critical minerals and materials.
  
  
• Advanced mining, critical material recovery, and resource characterization technologies. Approximately $90 million is allocated across two programs, including $60 million for the Mine of the Future/Advanced Critical Material Recovery Technologies program, focused on research and development of advanced mineral extraction techniques, and $30 million for the Resource Characterization Technologies program to develop technologies that expedite project development.
  
  
• Critical minerals processing from secondary and unconventional sources. Approximately $29 million is allocated to advance technologies that extract critical minerals and materials from secondary and unconventional resources.

The President's Budget also requests $150 million for CMEI’s Advanced Materials and Manufacturing Technologies Office, including continued funding for its Critical Materials Innovation Hub, which develops technology to diversify and expand the availability of rare earth metals and other critical materials.

Federal lands, mining administration, and mine safety

The President's Budget proposes several structural and programmatic changes affecting agencies responsible for regulating and managing mining on federal lands. The US Bureau of Land Management (BLM), which administers approximately 700 million acres of onshore federal mineral estate, would receive $208 million for energy and minerals management activities. The President's Budget includes a provision requiring BLM, upon request by the claimant, to prioritize completion of validity determinations for mining claims located within the area covered by Public Land Order 7921. 

The President's Budget also proposes the creation of the Marine Minerals Administration through the reunification of the Bureau of Ocean Energy Management and the Bureau of Safety and Environmental Enforcement into a single entity. The President's Budget states that proposed reorganization is intended to reduce regulatory barriers and accelerating offshore energy and critical mineral development, including critical mineral lease sales on the US Outer Continental Shelf.

Defense and cross-government investments

In addition to the $13 billion in financing and dedicated resources proposed elsewhere in the President's Budget, aimed at supporting civilian agency efforts to rebuild and secure critical mineral supply chains, the President's Budget expands the US Department of War’s investments in critical minerals and domestic supply chains. These proposals include a legislative request for $18.005 billion for the National Defense Stockpile, with a stated aim of reducing US dependence on foreign sources of strategic and critical materials. 

The President's Budget further includes $5 billion for the America First Opportunity Fund within the US Department of State, which would mobilize resources to support critical mineral supply chains, among others. In addition, the President's Budget proposes $20.216 billion in funding for direct loan subsidies through the Defense Strategic Capital Credit Program, which would support loans, loan guarantees, and technical assistance administered by the Office of Strategic Capital, providing an additional financing avenue for companies operating in the critical minerals and mining sector.

Business implications

For companies involved in mining or the processing, refining, or recycling of critical minerals and rare earth elements, the President's Budget request presents several potential areas of opportunity. Increased AMMPT funding, the new rare earth pilot projects program, and the proposed $18.005 billion in funding for the National Defense Stockpile may collectively reflect a focus on accelerating domestic mineral production and procurement at scale. The proposed consolidation of offshore mineral management under the Marine Minerals Administration, BLM’s prioritization of mining claim validity determinations, and the Trump Administration’s stated commitment to opening federal lands for mineral development may accelerate project timelines for companies operating on, or seeking access to, federal lands. 

As the President's Budget is subject to the congressional appropriations process, enacted funding levels may differ materially from those requested. Stakeholders may wish to assess how their project profiles, mining operations, technology platforms, and supply chain strategies align with the Trump Administration’s stated priorities and monitor developments as the appropriations process proceeds.

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DLA Piper lawyers are monitoring these developments and their potential implications. For more information, please contact the authors.