US investing nearly $2B in power grid as electricity demand surges
FILE-In an aerial view, electrical transmission lines hang over a housing development on March 24, 2026 in Sylmar, California. (Photo by Justin Sullivan/Getty Images)
The Department of Energy is planning to spend almost $2 billion to attempt to squeeze additional electricity out of the country’s old and exhausted power grid.
According to The Associated Press, the funding will be allocated toward 31 projects across 26 states that are expected to produce over 23 gigawatts of extra electricity capacity, which is enough to power 16 million homes.
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These projects will use new technologies like sensors and other devices to measure real-time weather conditions to guarantee safe distribution or direct power away from clogged or overfilled paths, the Energy Department told the AP.
U.S. investment in power grid amid electricity demand
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Energy Department officials tell The Associated Press that the projects will involve component enhancements on over 1,500 miles of transmission lines and technological refinement across almost 21,000 miles.
The projects are being financed through money for grants coming from a bipartisan infrastructure law enacted by Congress under then-President Joe Biden.
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Approximately $1.9 billion in funding will be matched by $3.35 billion in cost-share funding from the recipients, the Energy Department shared with the AP.
Recipients of the include utilities, cooperatives and four state agencies in Colorado, Indiana, Ohio and Oklahoma.
These states were the largest recipients of the funding, collectively gaining a total of $810 million, with the Colorado and Oklahoma projects promising improvements to the wider regional grid.
Meanwhile, President Donald Trump has pledged to "unleash" the U.S. energy sector in his second term, planning to ramp up record-setting domestic oil and gas production, strip away pollution limitations on power plants and keep high-priced coal-fired power plants operating past their retirement dates, the AP reported.
The Trump administration also has committed almost $4 billion to buy back offshore wind leases as Trump aims to discourage the expansion of wind energy in favor of fossil fuels.
The Source: Information for this story was provided by The Associated Press, which cites comments from Department of Energy officials about the power grid project. This story was reported from Washington, D.C.