USDA Notice of Funding Opportunity for the Rural Energy for America Program for Fiscal Years 2025, 2026, and 2027

Notice: USDA Delays First FY2026 REAP Grant Window

The USDA has announced a delay in the opening of the first grant application window for Fiscal Year 2026 under the Rural Energy for America Program (REAP). The window will open July 1, 2025, and close September 30, 2025—but no grant applications will be accepted during this period.

This temporary pause applies to all REAP grant or combined grant and loan guarantee applications, regardless of funding source. The reason? Overwhelming demand has created a significant backlog, and USDA is pausing intake to focus on clearing it.

Important Note: Loan guarantee-only applications are still being accepted.

USDA recently announced REAP IRA and Farm Bill grants, and combined grant/loan applications will resume being accepted starting October 1, 2025.

If you have questions or need guidance on how this affects your funding strategy, our team is here to help. Reach out—we’ll help you navigate the timeline with confidence.

FUNDING PROGRAM: USDA Notice of Funding Opportunity for the Rural Energy for America Program for Fiscal Years 2025, 2026, and 2027.

FUNDING OPPORTUNITY NUMBER: RDBCP–REAP–RES–EEI–2025–2026– 2027.

FUNDING AGENCIES: United States Department of Agriculture (USDA).

OPPORTUNITY:

The Rural Business-Cooperative Service (RBCS), a Rural Development (RD) agency of the United States Department of Agriculture (USDA), is issuing a Notice of Funding Opportunity (NOFO) to announce acceptance of grant, guaranteed loan, and combined grant and guaranteed loan applications. The NOFO is being issued for Fiscal Years (FY) 2025, 2026, and 2027.

DESCRIPTION:

The Agency provides Renewable Energy Systems (RES), Energy Efficiency Improvements (EEI) and Energy Efficient Equipment (EEE) and systems grants, guaranteed loans, and combined grant and guaranteed loan combinations through the REAP program to help eligible applicants reduce energy costs and consumption and help meet the Nation’s critical energy needs. Applications for REAP may be submitted at any time throughout the year.

Rural Development Key Priorities: The Agency encourages applicants to consider projects that will advance the following key priorities:

• Assisting rural communities in recovering economically through more and better market opportunities and through improved infrastructure
• Ensuring all rural residents have equitable access to RD programs and benefits from RD-funded projects
• Reducing climate pollution and increasing resilience to the impacts of climate change through economic support to rural communities

ELIGIBLE APPLICANTS: 

For RES/EEI applications:

• Agricultural Producers
• Rural Small Businesses

For EEE applications:

• Agricultural Producers

FUNDING AVAILABLE: 

• FUNDING AVAILABILITY (ANTICIPATED): $180 million per FY 2025, 2026 and 2027.
• INDIVIDUAL AWARD AMOUNTS:
  • RES/EEI loan guarantees or the loan guaranteed portion of a combined loan guarantee and grant funding request, the minimum REAP guaranteed loan amount is $5,000, and the maximum amount of a guaranteed loan to be provided to a borrower is $25 million
  • RES IRA Grant- $1 million; RES Non-IRA Grant-$500,000
  • EEI Maximum Grant- $500,000; EEI Minimum Grant- $1,500

Note: EEE applicants are only eligible for loan guarantee assistance with a maximum amount of loan guarantee of $25 million.

APPLICATION DEADLINE(S): Applications are received year round.