Connect the Grid Act of 2026

Key Points

• This bill would force the Texas power grid (ERCOT) to physically connect with neighboring grids in the Midwest (MISO), South/Central (SPP), and the Western Interconnection. The required transfer capacity ranges from 2.5 to 16.2 gigawatts depending on the connection, enough to power millions of homes during emergencies.
• The bill strips Texas's longstanding exemptions from federal energy regulation. ERCOT has historically avoided federal oversight by keeping its grid isolated within state borders. This bill repeals those exemptions, giving the Federal Energy Regulatory Commission (FERC) authority over Texas transmission.
• All new transmission lines must be sited, constructed, or modified by January 1, 2035. The bill prioritizes using existing rights-of-way like highways and railroads, degraded land like brownfield sites, and grid-enhancing technologies to minimize environmental and community disruption.
• To finance these massive infrastructure upgrades, the bill increases the borrowing authority for the federal Transmission Facilitation Program from $2.5 billion to $13.5 billion — a more than fivefold increase.
• The bill requires meaningful outreach to environmental justice communities, Tribal and Indigenous communities, and labor organizations. Construction projects must use registered apprenticeship programs and pay prevailing wages, creating quality jobs in the energy sector.
• A separate provision directs the Secretary of Energy to study the benefits of interconnecting U.S. electric facilities with Mexico's grid, examining reliability, climate, and cost impacts, with a report due to Congress within one year.

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