Washington, D.C. – The U.S. Department of Agriculture is moving forward with the Trump administration’s commitment to boost American energy and economic prosperity in rural communities. A final rule issued by Rural Development’s Rural Business‑Cooperative Service (RBCS) will simplify the application process for the Rural Energy for America Program (REAP), lower agency risk, and safeguard taxpayer funds.
Key Changes to the REAP Application Process
Under the new rule, applicants who submitted a Form 1940‑1 “Request for Obligation of Funds” before the regulation’s effective date may still have their projects processed, provided they remain consistent with the program’s terms. The rule also clarifies that each person or entity is subject to a maximum grant amount per federal fiscal year, and entities sharing common management or ownership are treated as a single entity for funding limits.
Secretary of Agriculture Brooke L. Rollins said, “The final rule from USDA will restore integrity and stability to the Rural Energy for America Program. For too long many applicants have prioritized unreliable energy sources and have not fully delivered on their stated goals, as of today that ends.” She added that President Trump is “committed to an energy‑dominant future for America and it starts with our rural communities.”
Protecting Farmland and Reducing Foreign Dependence
Under Secretary for Rural Development Glen R. Smith emphasized that the rule cuts red tape so farmers and rural small businesses can focus on investing in their operations rather than navigating paperwork. He also noted that the rule helps protect productive American farmland from oversized solar projects and ensures that taxpayer‑supported energy investments do not rely on components from foreign adversaries.
“REAP should work for rural America, not foreign supply chains or projects that take good farmland out of production,” Smith said.
Program Benefits and Next Steps
REAP provides guaranteed loan and grant funding to agricultural producers and rural small businesses for energy systems and energy‑efficiency improvements. The USDA will publish annual program notices that announce the opening and closing dates for the application window.
For more information, interested parties can visit the USDA Rural Development website at https://www.rd.usda.gov/programs-services/energy-programs or contact their State Energy Coordinator. Those who wish to receive USDA Rural Development updates may subscribe via the GovDelivery subscriber page.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
