Key Takeaways:
- Legislation Passed: On January 23, 2026, President Trump signed H.R. 6938 into law, securing a dedicated $33 million for the EPA’s ENERGY STAR® program for Fiscal Year 2026.
- Historic Precedent: For the first time, Congress mandated a specific legal line item for ENERGY STAR funding, protecting it from executive-level elimination.
- Impact on CRE: ENERGY STAR® Portfolio Manager® remains the primary compliance tool for municipal and state Building Performance Standards (BPS) across North America.
After formerly being on the chopping block of the Trump Administration’s budget package, the Environmental Protection Agency’s (EPA) ENERGY STAR® program remains alive and well. President Trump signed H.R. 6938 into law this January, which set aside $33 million for the program to continue in 2026.
This funding isn’t just about keeping ENERGY STAR’s bright blue logo on appliances and buildings, it’s about modernization, infrastructure, and billions of dollars in consumer incentives and savings.
What is ENERGY STAR and Why Does it Matter for Commercial Real Estate?
ENERGY STAR was founded in 1992 as a government-backed program to improve energy efficiency, public health, and energy cost-savings. Since then, they have helped Americans:
- Save over $500 billion in energy costs.
- Achieve 4 billion metric tons of GHG emissions reductions.
- Save 5 trillion kWh of electricity.
The Role of ENERGY STAR Portfolio Manager®
In the real estate industry, ENERGY STAR has played a massive role in energy efficiency, especially through their Portfolio Manager program. ENERGY STAR Portfolio Manager is the basis for nearly every energy efficiency ordinance across the country. Last year, the Trump Administration announced a significant staffing reduction of the EPA, and with that, ENERGY STAR’s future was in jeopardy. Though, many stakeholders including Green Econome and VCA Green advocated for the program via USGBC’s Letter Supporting Energy Star.
How Did H.R. 6938 Fund ENERGY STAR?
The passing of H.R. 6938, which passed with bi-partisan support, specifically set aside just over $33 million for the ENERGY STAR program.
The bill set forth mandatory annual spending on ENERGY STAR which has seen a steady decrease in spending over the last decade. This means that the program has secured funding through the 2026 fiscal year.
The Bottom Line: What Building Owners Should Do in 2026
With ENERGY STAR’s funding officially secured for 2026, the energy and real estate industries are reminded of the value in long-term investment in building performance. As new building performance standards and energy codes emerge, they are being built on ENERGY STAR’s foundation.
While the EPA still faces the challenges of reorganization, the message to stakeholders is clear: tracking and optimizing energy use has evolved from a ‘nice-to-have’ to a cornerstone of 2026 for many building owners.
If you own or operate a large commercial building and are interested in taking advantage of this opportunity to improve your property’s performance, we can help you plan improvements, track your performance, and identify incentives to help pay for everything.
