Trade Groups Urge $1.2 Billion Federal Funding to Boost Domestic Transformer Production Amid Supply Chain Challenges

Seven trade groups have called for $1.2 billion in federal funding to help manufacturers of distribution transformers increase their production capacity. The groups argue that robust domestic production is essential to ensuring a reliable U.S. grid while reducing dependence on foreign products. This comes amid ongoing supply chain challenges and high demand for grid components. The Senate Appropriations Committee in July unanimously passed language specifying $1,2 billion of repurposed supplemental funding for the Department of Energy to bolster the transformer and critical grid component supply chain. The trade groups argue this should be included in the final Energy and Water Development Appropriations bill and are urging inclusion of this language in any forthcoming House-Senate conference negotiations.