Key facts
- The Trump administration has restricted access to the Rural Energy for America Program (REAP).
- New rules require projects to be fully built and operational before applying for funding.
- Previous rules allowed farmers to apply for funding before construction began.
- The changes aim to disincentivize solar photovoltaic and wind energy systems on cropland.
- REAP invested nearly $4.8 billion in projects between 2012 and 2025.
- Environmental groups and farmers have filed a lawsuit against the USDA challenging the rule changes.
The Trump administration has implemented significant changes to the Department of Agriculture’s Rural Energy for America Program (REAP), effectively curtailing farmers' access to funding for energy projects, particularly those involving renewable sources. The new regulations, which took effect on October 16, mandate that projects must be fully constructed, operational, and demonstrate actual energy savings and performance metrics before any funding can be applied for. This marks a substantial departure from the program's prior structure, which allowed farmers to seek grants and loan guarantees before commencing construction.
According to analysts and advocacy groups, this shift will render many energy efficiency and renewable energy projects, such as solar installations, inaccessible to farmers who cannot afford the upfront costs. The USDA stated the changes aim to eliminate taxpayer funding for "unreliable energy sources," protect farmland from oversized solar developments, and reduce reliance on components from foreign adversaries. Secretary of Agriculture Brooke Rollins asserted that the era of prioritizing unreliable energy sources is over, while Under Secretary for Rural Development Glen Smith emphasized protecting American farmland and ensuring investments benefit rural America rather than foreign supply chains.
The REAP program, launched in the 2000s, has historically invested significantly in rural energy initiatives, with nearly $4.8 billion allocated between 2012 and 2025, making it the agency's second-largest business program. Historically, over two-thirds of its grants have benefited districts represented by Republicans, primarily in the Midwest. However, applications for REAP funding have been halted this year pending the rule review.
Organizations such as the National Sustainable Agriculture Coalition (NSAC) and RENEW Wisconsin have voiced strong opposition, arguing that the new requirements will exacerbate financial difficulties for farmers already struggling with high diesel prices and trade policy impacts. Richa Patel, a policy specialist at NSAC, noted that the changes are "simply won’t be possible" for many farmers given the current financial uncertainty. The Environmental Law & Policy Center (ELPC) and Earthjustice, along with the Iowa Farmers Union and other farmer groups, have filed a lawsuit against the USDA. They contend that the policy harms farmers and rural small businesses by blocking access to affordable solar energy systems due to the inability to cover upfront installation costs without grant or loan support.