USDA Forest Service Wood Innovations Grant Program – FY 2026 Funding Overview

Program Overview

The Wood Innovations Grant Program is designed to stimulate, expand, and support U.S. wood products markets and wood energy markets that contribute to the long-term management of the National Forest System and other forest lands. National focus areas include mass timber, renewable wood energy, and technology development that supports hazardous fuel reduction and sustainable forest management.

In practical terms, this program aims to grow demand for wood and biomass generated through forest health and hazardous fuels reduction work—helping create market pull for material that otherwise becomes a disposal and cost burden.

Project Priority Preferences

Projects may be more competitive when they clearly align to one or more of the following priorities:

• Create or expand markets for wood and biomass generated by forest health and hazardous fuels reduction projects.
• Support domestically sourced timber and U.S. manufacturing of mass timber and other wood products.
• Include wood products or wood industry partners as active participants.
• Support commercial building markets (or other markets) that use innovative wood products.
• Demonstrate cost reductions in land management or restoration activities.
• Bundle or address multiple wood energy or wood products projects.
• Commit to utilizing domestically sourced timber for mass timber construction projects.

Funding Details

• Estimated Total Funding: Up to $30,000,000
• Maximum Award (Typical): Up to $300,000
• Higher Awards (Case-by-Case): Up to $500,000 may be considered for proposals demonstrating significant, sizeable market impact
• Stationary Wood Energy Exception: Up to $1,000,000 may be available for a stationary wood energy system rated
  greater than 5 MW thermal output if it meets one of the following:
  • A thermal energy system converting 50% or more of input energy to useful thermal energy; or
  • A thermally led combined heat and power system producing electricity plus useful thermal energy, converting 50% or more of input energy to useful energy (useful thermal energy + electricity).
• Application Deadline: April 22, 2026

Cost Sharing Requirements

Applicants must provide matching funds equal to at least 100% of the requested Forest Service funding. Building a match strategy early (and documenting sources clearly) is often one of the biggest drivers of application readiness.

Eligible Applicants

Eligible applicants include:

• For-profit entities
• Indian Tribes
• Not-for-profit organizations
• Higher education institutions
• Special purpose districts (e.g., public utilities, fire districts, school districts, conservation districts, ports)

For official guidance, requirements, and updates, review:

USDA Forest Service – Wood Innovations Program

Grants.gov Opportunity Listing (USDA-FS-WOOD INNOVATIONS-2026)

How LEC Partners Supports Wood Innovations Grant Applicants

Wood Innovations proposals tend to be strongest when they connect feedstock reality, market pull, and
execution readiness—not just technical ambition. LEC Partners supports applicants with independent, implementation-focused analysis to help proposals read as executable plans.

• Market and offtake logic: End-use markets, buyer pathways, and commercialization assumptions
• Feedstock and supply chain assessment: Sourcing strategy for restoration byproducts and operational constraints
• Technology and feasibility review: Readiness, scalability, performance assumptions, and practical risks
• Budget and match planning: Cost realism, match strategy, and documentation approach
• Narrative development: Clear, reviewer-readable positioning aligned to program objectives

Our team works across biomass and bioeconomy supply chains, renewable infrastructure, and project development—helping applicants reduce risk and strengthen credibility before submission.

Questions We Often Get About Wood Innovations Grants

Further Reading

LEC Insights

Other Trusted Industry Sources