The U.S. Environmental Protection Agency (EPA) released a proposed fiscal year 2027 budget recently, cutting overall funding by 52% compared to 2026 levels. If approved, the $4.2 billion budget would represent a significant shift in EPA priorities. For the door and window industry, the proposal points to reduced federal involvement in some regulatory programs, continued pressure to transition away from hydrofluorocarbon-based technologies (including those used as foam-blowing agents) and a larger role for the U.S. Department of Energy (DOE) in administering the Energy Star program.
According to EPA officials, the latest proposed budget reflects a “back-to-basics” approach—one that’s focused on core statutory responsibilities, permitting reform, energy development and greater reliance on state and local governments to administer programs. Under the proposal, the EPA would continue supporting Energy Star, albeit in a much smaller capacity, allocating just one full-time employee to the program. Under the proposed budget, Energy Star would be administered by the DOE, following through on a memorandum of agreement produced in March 2026, a move that reflects administrative efforts to consolidate responsibilities and reduce overlap among federal agencies. The move could further shift administration of programs focused on energy efficiency toward DOE, while allowing EPA to focus resources on environmental compliance and remediation activities.
The budget maintains support for the American Innovation and Manufacturing (AIM) Act, which calls for decreased use of hydrofluorocarbons, synthetic gases which have historically been used as foam-blowing agents. EPA officials say the agency will continue efforts to transition the market toward lower-emission alternatives.
Another program the new budget would eliminate includes EPA’s Lead Risk Reduction Program, including federal administration of lead-based paint abatement and renovation, repair and painting activities. While states and tribal governments could continue operating their own authorized programs, agency officials say eliminating the federal program would reduce regulatory burdens, allowing resources to be redirected to other priorities. The proposal could have implications for replacement door and window contractors, although details remain unclear.
Impacting the new construction side of the industry, EPA is also seeking increased funding for permitting modernization. The proposed budget includes $33.6 million for the National Environmental Policy Act (NEPA) Implementation Program, a $9.4 million increase over current levels. Agency officials say funding would support expanded use of artificial intelligence (AI) and automation tools designed to streamline environmental reviews and accelerate permitting decisions. Those changes could benefit dealers servicing large residential or commercial development projects that require federal environmental review.
On the manufacturing side, the budget proposal also highlights continued support for domestic manufacturing initiatives tied to Build America, Buy America (BABA) requirements.
EPA officials say new systems would be developed to improve tracking of waiver requests, while helping to identify domestically produced construction materials used in federally funded projects. The effort could place additional attention on sourcing and domestic content requirements for manufacturers supplying products to government-funded projects.
The proposal still faces the congressional appropriations process, where funding levels and program priorities could be revised before a final budget is enacted. Congress will review the formal “Justification of Appropriation Estimates,” proposing a 52% funding decrease. Meanwhile, EPA officials say the agency expects to implement its FY 2026–2030 Strategic Plan, including integration of AI to achieve operational efficiencies. Going forward, officials say the agency will track its progress on priority goals quarterly, while transitioning “non-core” programs—including a change of address for Energy Star from EPA to DOE offices.