The Enduring Legacy of Edwin J. Feulner: Conservative Policy and the Future of Energy, Defense, and Regulatory Reform Investments

Edwin J. Feulner's decades-long stewardship of the Heritage Foundation cemented his legacy as a pivotal architect of modern conservative policy. From his 1977 appointment as president until his passing in 2024, Feulner transformed the Heritage Foundation into a powerhouse of ideological influence, shaping everything from Reagan-era tax cuts to the Trump administration's deregulatory agenda. His most recent contributions, including his involvement in Project 2025, a 920-page conservative policy blueprint, reveal a strategic vision for aligning investment opportunities with conservative priorities in energy, defense, and regulatory reform. For investors, understanding Feulner's legacy—and the policies it undergirds—offers a roadmap to sectors poised for growth in a politically charged climate.

Energy: The Fossil Fuel Renaissance

Feulner's energy policy philosophy, rooted in free-market principles and energy independence, has found new life in Project 2025. The document explicitly calls for expanding fossil fuel production, reducing federal regulatory burdens, and phasing out subsidies for renewable energy. This aligns with the Heritage Foundation's American Energy Alliance (AEA), which Feulner co-founded, advocating for policies that prioritize oil, gas, and coal over climate-driven mandates.

Key investment opportunities in this space include:
- Oil and Gas Producers: Companies like ExxonMobil (XOM) and Chevron (CVX) stand to benefit from expanded federal leasing on public lands and reduced royalty rates. Project 2025 also proposes increasing carbon capture tax credits for enhanced oil recovery, a move that could boost margins for integrated energy firms.
- Infrastructure Providers: Firms involved in pipeline construction (e.g., Williams Companies (WMB)) and drilling equipment manufacturing (e.g., National Oilwell Varco (NOV)) may see increased demand as production ramps up.
- Regulatory Reform Advocates: Feulner's push to eliminate the Davis–Bacon Act—a law that inflates construction costs—could spur growth in industrial construction firms like Bechtel Group.

The energy sector's alignment with Feulner's legacy is further reinforced by Project 2025's emphasis on energy security as a national defense priority. With geopolitical tensions and supply chain vulnerabilities persisting, investors should consider the long-term appeal of energy stocks in a policy environment that favors domestic production.

Defense: Revitalizing the Industrial Base

Feulner's advocacy for a robust U.S. defense industrial base (DIB) has taken center stage in Project 2025. The document outlines a sweeping agenda to streamline procurement, expand output capacity, and reduce bureaucratic hurdles for defense contractors. For example, output capacity-based grants are proposed to help companies like Lockheed Martin (LMT) and Raytheon Technologies (RTX) scale production of critical systems such as F-35 fighter jets and next-gen submarines.

Key investment themes include:
- Multi-Year Contracts: The shift to multi-year procurement contracts, which reduce cost uncertainty for manufacturers, is expected to boost performance for defense primes. Northrop Grumman (NOC) and Boeing (BA) could see improved margins as these contracts become standard.
- Tax Incentives: Full expensing of capital expenditures and removal of profit caps for defense contractors are designed to spur R&D and capital investment. L3Harris Technologies (LHX) and Raytheon are positioned to benefit from these reforms.
- Foreign Sales Expansion: Reforms to ITAR (International Traffic in Arms Regulations) could unlock new markets for U.S. defense exports, particularly for General Dynamics (GD) and BAE Systems.

The Heritage Foundation's focus on economic deterrence—building a defense sector capable of outpacing adversaries like China—further strengthens the case for defense stocks. With global security challenges intensifying, the DIB's role as a political and economic linchpin makes it a compelling long-term investment.

Regulatory Reform: Streamlining Growth

Feulner's advocacy for deregulation has always been a cornerstone of his policy agenda. Project 2025 extends this vision by proposing streamlined permitting processes, reduced tax burdens, and the elimination of costly federal mandates. For investors, these reforms open opportunities in sectors constrained by red tape:
- Construction and Infrastructure: The repeal of the Davis–Bacon Act and simplified permitting under NEPA could revive growth in construction firms like Fluor Corporation (FLR) and AECOM (ACOM).
- Energy and Manufacturing: Reduced regulatory costs for fossil fuel and manufacturing projects may boost profitability for companies like Peabody Energy (BTU) and Caterpillar (CAT).
- Tax Reform Beneficiaries: Full expensing of capital investments could accelerate growth for industrial companies reliant on heavy machinery and infrastructure.

Feulner's emphasis on “people are policy”—placing conservative leaders in key roles—also signals a shift in regulatory enforcement. Sectors historically burdened by EPA or OSHA regulations may see lighter compliance costs, enhancing their attractiveness to investors.

Conclusion: Aligning with Feulner's Vision

Edwin J. Feulner's legacy is not merely a historical footnote but a living framework for conservative policy and investment. Through the Heritage Foundation and Project 2025, his vision of energy independence, defense revitalization, and deregulated markets continues to shape the political landscape. For investors, this means prioritizing sectors where policy and profit intersect: energy firms poised to capitalize on fossil fuel expansion, defense contractors benefiting from streamlined procurement, and industries set to thrive under regulatory reform.

While the exact implementation of Project 2025 remains contingent on future administrations, Feulner's influence ensures that conservative policy will remain a potent force in U.S. governance. Investors who align their portfolios with these priorities stand to gain not only from market dynamics but from the enduring political capital of a legacy that has defined an era.