Candace BarnetteAs U.S. companies and officials carefully monitor federal programs to determine whether funding Congress approved during the Biden administration will become available, a recent announcement may signal a shift in priorities. Some programs, including those currently funded, may need to align with new goals set by the Trump administration. If other agencies take a similar approach, future funding could be contingent on modifications to meet revised qualifications.
After months of uncertainty caused by a funding freeze, the U.S. Department of Agriculture (USDA) has announced the release of previously obligated funds under the Rural Energy for America Program (REAP), Empowering Rural America (New ERA) and Powering Affordable Clean Energy (PACE) programs. This decision comes after widespread disruptions affected farmers, ranchers and small businesses nationwide.
The USDA gave recipients 30 days from March 25 to “review and voluntarily revise their project plans to align with President Trump’s Unleashing American Energy Executive Order issued on January 20, 2025.” The agency said this is part of an effort to eliminate Biden-era DEIA and climate mandates.
The USDA will ask the recipients several questions and request a short narrative description of proposed changes.
REAP
REAP offers grants and loan guarantees to agricultural producers and rural small businesses for renewable energy systems and energy efficiency improvements. Traditionally a smaller program, REAP received a significant boost with $2 billion in additional funding over 10 years from the Inflation Reduction Act. Grants can cover up to 50% of project costs, with a maximum of $1 million for renewable energy projects. Loan guarantees can cover 75% of project costs, up to $25 million.
New ERA
New ERA assists rural electric cooperatives in implementing clean energy projects to reduce emissions and promote energy independence. In January 2025, the USDA awarded approximately $9 billion, covering about 90% of the program’s budget authority. This funding supports projects across 35 states, with cooperatives committing to build or purchase over 13 gigawatts of clean energy.
PACE
PACE is a financing mechanism that enables property owners to finance energy efficiency upgrades and renewable energy installations through property tax assessments. In January 2025, the USDA announced a $565 million investment in PACE, supporting 26 clean energy projects across 17 states. This program was designed to stimulate economic growth, create jobs and facilitate the transition to a net-zero energy future. According to January estimates from the USDA, more than one in five rural Americans will benefit from clean energy investments supported through the New ERA and PACE programs.
