USDA to release previously obligated REAP funds, directs recipients to revise applications
March 26, 2025
BY Erin Voegele
The USDA on March 25 announced it will release previously obligated funding under the Rural Energy for America Program (REAP), Empowering Rural America (New ERA) and Powering Affordable Clean Energy (PACE) programs. To receive the funds, however, applicants will be required to remove “harmful DEIA and “far-left climate features” from project proposals.
According to the USDA, funding recipients will have 30 days to review and voluntarily revise their project plans to align with President Trump’s Unleashing American Energy Executive Order issued on Jan. 20, 2025. The agency said the the revision process will give applicants “the opportunity to refocus their projects on expanding American energy production while eliminating Biden-era [diversity, equity, inclusion and accessibility (DEIA)] and climate mandates embedded in previous proposals.” USDA Rural Development will individually inform awardees about the revision requirement. Respondents will also be asked to answer several questions and provide a short narrative description of any proposed changes.
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The USDA said the “updated guidance reflects a broader shift away from the Green New Deal and the so-called Inflation Reduction Act (IRA) and toward practical energy investments that prioritize the needs of rural communities.”
The Unleashing American Energy Executive Order directed all federal agencies terminate the “Green New Deal” by immediately pausing the disbursement of funds appropriated through the Inflation Reduction Act of 2022 and review whether those disbursements are in line policy guidelines outlined by the Trump administration. Within 90 days, the heads of each federal agency were to submit a report to the National Economic Council and the White House Office of Management and Budget detailing the findings of their reviews. The impacted IRA funds would be eligible for disbursement only after the OMB director and assistant to the president for economic policy determined that such disbursements are consistent with the administration’s goals.
The REAP program was first established by Congress in the 2008 Farm Bill. The program provides grants and loan guarantees to agricultural producers and rural small businesses to support energy efficiency improvements and renewable energy systems. REAP funds are routinely awarded to support the development of biogas systems and to support improvement projects at ethanol and biodiesel plants.
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The PACE and New Era programs support the development of rural energy infrastructure projects, including those that are fueled with biomass.
The USDA in February released approximately $20 million in IRA funding that was awarded through the Environmental Quality Incentive Program, the Conservation Stewardship Program, and the Agricultural Conservation Easement Program.
Funding for other USDA programs allocated through the IRA remains on hold, including funding for various climate-smart agriculture programs.
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