Why It Matters

The federal government is racing to map America's underground mineral wealth as China tightens its grip on critical mineral exports and the Pentagon backs domestic processing capacity. The House Natural Resources Subcommittee on Energy and Mineral Resources is holding an oversight hearing on Thursday, June 25 on the USGS Earth Mapping Resources Initiative to examine whether this geological survey program can deliver the data needed to unlock domestic rare earth supplies. Without sustained funding, the initiative could shrink by roughly 75 percent, undermining years of investment in identifying mineral deposits essential to defense, clean energy, and electronics manufacturing.

The Geopolitical Pressure

China's control over rare earth supply chains has intensified the urgency. It added new export licensing controls on rare-earth compounds including samarium, gadolinium, and lutetium effective this year on January 1. China suspended its rare earth export restrictions in November 2025 for one year, with the suspension set to expire on November 10. As of May, the White House announced that China had agreed to address shortages of critical minerals including yttrium, scandium, indium, and neodymium. But these negotiations offer only temporary relief.

The DOE's Office of Critical Minerals and Energy Innovation announced $134 million for two projects on June 2 to strengthen domestic rare earth element supply chains and reduce reliance on foreign sources. More recently, the Pentagon's Office of Strategic Capital conditionally committed $500 million in long-term debt financing on June 16 to rare-earth refiner Phoenix Tailings to construct a rare earth midstream processing plant in the U.S.

Earth MRI Technology

The Earth MRI hearing will examine a federal program that uses airborne geophysical surveys, geochemical sampling, and 3D subsurface mapping to identify potential domestic critical mineral deposits. The initiative has moved from pilot phase into active deployment. The USGS announced low-level helicopter flights over the Lake Superior Basin beginning in June to image subsurface geology using airborne geophysical technology, with the survey expected to continue through fall 2026. The USGS began low-level airplane flights over eastern North Dakota and portions of Minnesota and South Dakota on June 15 to image geology using airborne geophysical technology as part of Earth MRI.

The program has also expanded its technological reach. The USGS announced a collaboration with NASA on May 12 to map critical minerals from 65,000 feet using airborne technology. The USGS published new case studies on May 27 highlighting how stakeholders use and benefit from Earth MRI data and products.

The Budget Threat

The program's momentum faces a severe headwind. The Trump administration's fiscal year 2027 budget request proposes a 37 percent cut to overall USGS funding, described as the largest in the agency's 147-year history. Without additional Congressional funding, Earth MRI's budget could return to its pre-2022 baseline of approximately $11 million per year, representing a roughly 75 percent cut from its $75 million annual level.

Hearing Details

The Beneath The Surface hearing is scheduled for June 25, 2026 at 10:00 AM ET at 1324 Longworth House Office Building. Rep. Pete Stauber (R-MN) chairs the subcommittee, with Rep. Yassamin Ansari (D-AZ) serving as ranking member and Rep. Nick Begich III as vice chair.

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