The United States imports approximately 58% of its petroleum and about 2/3 of that is used for propulsion of cars and light trucks [The White House National Economic Council. Advanced Energy Initiative, < http://www.whitehouse.gov/stateoftheunion/2006/energy/energy_booklet.pdf > ; 2006]. it is important to reduce dependence on foreign oil. Hydrogen-fueled fuel cells for transportation have the potential to solve these problems. The US Department of Energy (DOE) is supporting research, development and demonstration of several types of fuel cells, including polymer electrolyte membrane (PEM) fuel cells, primarily for transportation applications. PEM technologies being developed with funding from DOE include electrolyte and membrane materials, catalyst and support materials, water management (including freeze/thaw) in the cell and stack, and bipolar plates. The effort is focused on the key issues of performance, durability, and cost. This paper provides an overview of the progress being made with DOE support. (c) 2008 Published by Elsevier Ltd. on behalf of international Association for Hydrogen Energy.