The Connect the Grid Act of 2026 would require Texas's independent power grid (ERCOT) to physically connect to neighboring regional power systems, including those in the South, Midwest, and West, to improve electrical reliability across the country. The bill removes federal exemptions that have allowed ERCOT to operate independently and sets specific minimum capacity requirements for new transmission lines connecting Texas to its neighbors, with all connections required to be completed by January 1, 2035. To support this effort, the legislation increases federal borrowing authority for transmission projects from $2.5 billion to $13.5 billion and requires that new transmission construction prioritize grid-enhancing technologies, use of degraded lands, renewable energy access, and prevailing-wage jobs with apprenticeships. The bill also mandates meaningful engagement with environmental justice communities, Indigenous communities, and labor organizations during project planning, and directs the Department of Energy to study potential benefits of connecting U.S. power systems to Mexico.
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