USDA has confirmed that REAP grant applications remain paused pending finalization of FY2026 program parameters. When the grant window reopens, applicants should expect meaningful changes to how projects are scored and prioritized compared to prior years.
The administration has publicly directed USDA to "disincentivize solar panels on productive farmland" in future REAP application windows. For FY2026, this is expected to translate into reduced scoring or eligibility for ground-mounted solar on prime agricultural land. The specifics of how this will be implemented in the scoring rubric have not yet been formally published.
Projects that are expected to remain competitive when the window reopens: rooftop solar, wind energy systems, anaerobic digesters, biomass systems, energy efficiency retrofits, and geothermal systems. These project types are not subject to the farmland-use concerns driving the solar restrictions.
REAP loan guarantee applications are not paused. Agricultural producers and rural small businesses with energy projects can apply for REAP loan guarantees through USDA-approved lenders at any time. The guarantee covers up to 75% of the loan amount, significantly reducing lender risk on rural energy projects.
Projects in planning should model with loan guarantees as the base case and treat any future REAP grant as additional upside. Do not structure a project budget that requires a grant to be viable — the timing and amount of future grants is uncertain.
USDA has not announced a firm date for resuming FY2026 grant applications. Industry groups monitoring the program expect a notice of funding opportunity to be published sometime in 2026, but the exact timing depends on how quickly USDA processes the existing backlog and finalizes new program parameters. Monitor rd.usda.gov for updates.
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