Rural Energy Funding Reshaped to Align with New Policy Priorities

Awardees encouraged to revise proposals under new executive order, shifting focus to local energy production

The U.S. Department of Agriculture (USDA) is continuing its support for rural energy development by releasing funds through REAP, New ERA, and PACE programs. This step reflects the Government’s commitment to empowering rural communities and enhancing the country’s energy independence.

U.S. Secretary of Agriculture Brooke Rollins announced that applicants have 30 days to review and update their project proposals in accordance with the Unleashing American Energy Executive Order introduced on January 20, 2025.

The revision process will allow awardees to remove past climate or diversity-focused elements and redirect their projects to emphasize local energy production.

“President Trump made tackling America’s energy emergency a top priority from day one, and this review allows rural energy providers and small businesses to realign their projects with that mission,” said Secretary Rollins.

USDA Rural Development will directly inform all awardees, asking them to respond with updated details and a short explanation of their proposed changes.

This decision also marks a policy shift away from earlier initiatives like the Inflation Reduction Act (IRA) and the Green New Deal. These older programs were often criticized for being too complex and not delivering benefits to rural communities.

Secretary Rollins added, “The IRA was marketed as a cure-all but delivered more bureaucracy than benefits for rural families.”

With this new approach, the USDA is creating opportunities for rural energy providers, farmers, and small business owners to invest in practical energy solutions that support the country’s long-term goals.