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

Program Overview

The USDA Forest Service Community Wood Grant Program supports shovel-ready projects that install community wood energy systems or expand innovative wood product manufacturing capacity. The program is designed to strengthen forest product markets while improving forest health and supporting rural economic development.

Healthy forests depend on a strong forest products economy. By expanding markets for wood residues and low-value timber, the program helps support forest restoration activities, reduce wildfire risks, and create new economic opportunities for rural communities.

Program Purpose

The Community Wood Grant Program aims to support projects that increase the use of renewable wood energy and innovative wood products manufacturing. By encouraging new markets for low-value wood materials, the program helps improve forest health while strengthening local forest products infrastructure.

Eligible Project Types

Funding is available for projects that:

• Install community-scale wood energy systems
• Expand or establish innovative wood product manufacturing facilities
• Utilize forest residues or low-value wood materials
• Support forest restoration and sustainable forest management

Projects using commercially proven technologies will generally be most competitive in the evaluation process.

Funding Priority Considerations

Projects may receive priority consideration if they:

• Support forest restoration efforts
• Create markets for low-value or low-quality wood
• Retrofit or expand existing sawmill facilities
• Operate in areas with high unemployment
• Install advanced emission control technologies for wood-fired systems
• Operate in locations with limited access to natural gas infrastructure

Projects that do not meet these criteria may still be competitive depending on their technical merits and economic impact.

Cost Sharing and Leveraging Requirements

Matching funds are not required; however, applicants must demonstrate leveraged funding sufficient to complete the proposed project beyond the requested Forest Service funding.

Eligible Applicants

Eligible applicants include:

• Businesses and corporations (for-profit)
• Local, state, and tribal governments
• Indian tribes
• Nonprofit organizations
• Institutions of higher education
• Special purpose districts (public utilities, fire districts, school districts, conservation districts, ports)

Funding Details

• Total Program Funding: Up to $15 million
• Typical Award Size: Up to $1 million
• Maximum Award: Up to $1.5 million with prior agency approval
• Application Deadline: April 22, 2026

How LEC Partners Supports Community Wood Grant Applicants

Projects supported by the Community Wood Grant Program often involve complex technical, economic, and market considerations. LEC Partners supports organizations developing forest product infrastructure, biomass energy systems, and advanced bioeconomy projects.

• Evaluation of project feasibility and technology readiness
• Market analysis for wood products and biomass energy
• Independent technical and financial due diligence
• Funding application development and narrative review
• Risk assessment and implementation planning

LEC’s network of subject-matter experts includes specialists in biomass energy, forest product markets, bioeconomy development, and renewable infrastructure.

Questions We Often Get About Community Wood Grants

Further Reading

LEC Insights

Other Trusted Industry Sources