The Trump administration has enacted major rule changes to the USDA Rural Energy for America Program (REAP) effective October 16, 2026. Farmers must now complete energy projects and demonstrate one year of energy savings before applying for grants that previously funded up to half of project costs upfront. Critics warn that requiring upfront completion will price out financially strained farmers, despite REAP investing over $4.8 billion across 19,000 projects since 2014.
New REAP application rules and reactions
- ▪National Sustainable Agriculture Coalition policy specialist Richa Patel stated that requiring project completion prior to applying for REAP funding will exclude financially strained farmers in 2026.
- ▪A USDA spokesperson stated that the October 2026 REAP rule changes are intended to pay for actual project production and results rather than projections.
- ▪Prior to the October 2026 rule changes, the USDA Rural Energy for America Program allowed farmers to apply for grants covering up to half of project costs before breaking ground.
- ▪Under USDA Rural Energy for America Program changes effective October 16, 2026, farmers must complete energy projects and demonstrate one year of energy savings before applying for funding.
Impact of the REAP application pause
- ▪The Trump administration paused applications for the Department of Agriculture's Rural Energy for America Program in 2026 while rewriting program regulations.
- ▪Solar application consultant Veronica McFadden laid off all five of her employees in August 2026 after business dried up during the Trump administration's REAP application pause.
Restrictions on solar project eligibility
- ▪Agriculture Secretary Brooke Rollins stated in 2025 that solar developments were consuming prime farmland needed for crops when restricting REAP solar eligibility.
- ▪The Environmental Law & Policy Center filed a lawsuit against the Trump administration in September 2026 over changes to solar project eligibility under the Rural Energy for America Program.
Historical scope of REAP funding
- ▪The Rural Energy for America Program helped fund more than 19,000 energy projects for American farmers and small business owners in the decade prior to October 2026.
- ▪Nearly 64 percent of Rural Energy for America Program projects funded since 2017 were solar arrays, according to USDA data.
- ▪The USDA Rural Energy for America Program invested more than $4.8 billion across grants and loan guarantees between 2014 and 2025, according to the National Sustainable Agriculture Coalition.
Political distribution and bipartisan support
- ▪Environmental Law & Policy Center federal legislative director Ann Mesnikoff stated that the Rural Energy for America Program has historically maintained broad bipartisan support.
- ▪More than two-thirds of REAP grants went to recipients in Republican-held Congressional districts, according to a Brookings Institution analysis published in 2025.
Ron Rusk REAP application
- ▪Solar application consultant Veronica McFadden assisted Michigan dairy farmer Ron Rusk with his application for a Rural Energy for America Program grant.
- ▪Michigan dairy farmer Ron Rusk was unable to receive REAP funding for an $85,000 ground-mounted solar installation intended to generate 80 percent of his farm's electricity.
Debatable claims
- ▪Restricting REAP solar grants to preserve farmland undermines small farm viability
- ▪USDA should fund REAP grants before project construction begins
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