On March 25, 2025, USDA announced that it will release funding that was already obligated through the Rural Energy For America Program (REAP), Empowering Rural America (New ERA) and Powering Affordable Clean Energy (PACE) programs. However, the agency announced that recipients must “voluntarily revise their project plans to align with President Trump’s Unleashing American Energy Executive Order,” which broadly encourages the rapid development of fossil fuel resources and infrastructure, and reverses federal actions on climate change and energy efficiency. Consequences for recipients who fail to revise their previously-approved project proposals were not specified.
REAP is funded by IRA section 22002 and supports projects to expand renewable energy and improve energy efficiency in rural communities. 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.