USDA Announces Changes to Rural Energy for America Program

USDA Rural Development, through the Rural Business Cooperative Service, is issuing a final rule with changes to the Rural Energy for America Program (REAP). The final rule is effective October 16, 2026. A public comment period on the final rule is open until November 2, 2026. Under the new REAP structure, projects must already be fully built and operational before the applicant ever applies. Applicants must submit actual energy production or savings data for the prior 12 months, alongside 12 months of pre-installation data. The Agency evaluates applications for completeness, eligibility, risk, and merit and will award grants subject to the availability of funds and criteria provided in an annual notice. In addition, multilocation projects and specific application of certain technologies are now ineligible for the program. USDA says these changes, combined with a planned online application portal, will significantly decrease the burden for applicants by shortening application length and review times.