USDA Announces Award of Over $6 Billion in Funding Through New ERA and PACE Programs

On January 10, 2025, USDA announced that it awarded over $6 billion in funding through the Empowering Rural America (New ERA) Program and the Powering Affordable Clean Energy (PACE) Program. The New ERA investment included $5.5 billion in loans and grants to support rural energy cooperatives in implementing 28 clean energy projects across 21 states. The PACE investment included $565 million in partially forgivable loans to support 26 clean energy projects across 17 states.

New ERA is funded by IRA section 22004 to reduce emissions from rural electric cooperatives. Funding for the PACE program comes from IRA section 22001, which authorizes USDA to make low-interest loans to expand renewable electricity generation.