Unlocking Federal Finance: Opportunities for Manufacturing and Energy Projects

By Kevin Curley and Swaroop Parekh

The first 100 days of the Trump Administration have brought significant changes across the federal government, including in federal funding and finance programs. In our conversations with policymakers, it’s clear the Administration aims to leverage existing financing tools to bolster domestic manufacturing and advance its American Energy Dominance agenda as described in the Day 1 and subsequent Executive Order. In response, federal financing programs are already revising their underwriting procedures, selection criteria and project eligibility requirements to align with these goals.

Below, BSP outlines four of the most active federal debt programs, each offering long-term, flexible, and competitively priced financing. While these programs present valuable opportunities, they can be difficult to navigate due to their distinct application processes and eligibility and compliance requirements. Further, in today’s constantly evolving political environment, combined with a reduced federal workforce, securing political backing and aligning projects with Administration priorities is more important than ever.

If you're interested in federal financing for a manufacturing, or energy project - or looking to ensure your technology qualifies under the revised eligibility criteria - BSP is here to help. We can guide you through program details, identify potential sources of support, and discuss the contours of a government relations strategy to build the requisite political support.  We have a proven track record of success in applying to these programs and achieving significant debt capital on favorable terms for our clients.

Department of Defense Office of Strategic Capital (OSC)

OSC’s mandate is to attract and scale private capital in industries and technologies that are critical to America’s national and economic security. OSC has 31 eligible Covered Technology Categories, many of which include energy and industrial technologies, such as solar, battery storage, biomass, hydrogen generation and storage, microelectronics, spacecraft, and more. For its first funding opportunity–which closed in February 2025–OSC had limited lending authority of approximately $900 million and offered direct loans (ranging from $10 million to $150 million) to finance the purchase or rehabilitation of equipment for expansion projects.

OSC’s second funding opportunity is anticipated to open in Q2/Q3 2025 and expected to allow for greenfield and brownfield projects financed under corporate and non/limited recourse project finance structures.   

BSP expects this program to receive significant bipartisan support in the near term. The Continuing Resolution signed on March 15, 2025 increased the program’s lending authority to $4 billion and a dramatic increase is anticipated to be included in the upcoming budget reconciliation process.

Export-Import Bank Make More in America Initiative (MMIA)

MMIA supports export-oriented domestic manufacturing projects through long-tenor loans for capital investment (e.g., building new factories, purchasing equipment, and other expenses related to manufacturing capacity). MMIA requires a minimum export threshold of 25%, but for small businesses, transformational export areas (including renewable energy, energy storage, semiconductors, and biotech and biomedical products) and climate-related technologies, the required export percentage is reduced to 15%. MMIA accepts applications on a rolling basis.

EXIM also offers several financing products designed to support U.S. exports and their international buyers including (i) export credit insurance which protects U.S. exporters against the risk of nonpayment by a foreign buyer, (ii) working capital loan guarantees, and (iii) direct loans and loan guarantees to creditworthy foreign buyers for purchases of U.S. capital goods and services.

U.S. International Development Finance Corporation (DFC)

DFC’s debt financing program aims to mobilize private sector capital for investments that address global challenges and advance American strategic interests abroad. DFC offers direct loans and loan guarantees of up to $1 billion across multiple priority sectors, including infrastructure and critical minerals, energy, food security and agriculture, health, and small business support. DFC accepts applications on a rolling basis. In addition to debt financing, DFC offers equity investments, political risk insurance, and technical assistance. 

Further, in March 2025, President Trump signed the Executive Order Immediate Measures to Increase American Mineral Production, granting DFC the ability to use authorities under the Defense Production Act to finance domestic mining projects.

BSP anticipates DFC will receive a substantial increase in lending capacity and expanded authorities - particularly as it relates to equity investments and supporting projects in high-income countries - during the reauthorization process this year. The agency will continue to receive bipartisan support, including from the Trump Administration which recommended a ~$3 billion budget increase for the agency in the FY 2026 Discretionary Budget Request.

Department of Energy Loan Programs Office (LPO)

LPO administers several programs focused on supporting (i) critical emerging and innovative energy and supply chain technologies, serving as a “bridge to bankability” for commercial deployment, (ii) advanced technology vehicles and components, and (iii) projects that repower or repurpose existing or retired energy infrastructure. LPO typically finances projects with costs exceeding $100 million and can provide ample debt capital at favorable terms, often more generous in loan size, tenor, interest rate, and amortization flexibility than a typical commercial lender. Applications are accepted on a rolling basis.

Amid speculation about the future of LPO, the Trump administration and Secretary Wright have expressed their intent to utilize the office’s substantial loan authority to finance projects that bolster U.S. supply chains and advance affordable, reliable, and secure energy technologies. Priority areas include, but are not limited to, nuclear energy, natural gas, critical minerals mining and processing, geothermal, hydropower, biofuels, and grid enhancing technologies. This commitment is reflected in the Trump Administration’s FY 2026 Discretionary Budget Request, released on May 2, 2025, which proposes maintaining LPO’s current funding levels.

With a strong track record of engaging with LPO, BSP is uniquely positioned to help clients navigate the technical, commercial, and political complexities of the program under the Trump Administration—and unlock its full potential to support transformative, high-impact projects.