Inflation Reduction Act Tracker

Sabin Center for Climate Change Law
Environmental Defense Fund

IRA Section 23002 – Forest Landowner Climate Mitigation Participation

Section 23002 of the IRA appropriates the following amounts to USDA:

1) $150 million for a competitive grant program under section 13A of the Cooperative Forestry Assistance Act of 1978, 16 U.S.C. § 2109a, to provide funding to underserved forest landowners for climate mitigation or forest resilience practices;

2) $150 million for a competitive grant program under section 13A of the Cooperative Forestry Assistance Act of 1978, to provide funding to underserved forest landowners in emerging private markets for climate mitigation or forest resilience;

3) $100 million for a competitive grant program under section 13A of the Cooperative Forestry Assistance Act of 1978, to provide funding to forest landowners who own less than 2,500 acres of forest land in in emerging private markets for climate mitigation or forest resilience;

4) $50 million for a competitive grant program under section 13A of the Cooperative Forestry Assistance Act of 1978, to provide funding to states and other eligible entities to pay owners of private forest lands to implement forestry practices that are determined by USDA, based on the best available science, to provide measurable increases in carbon sequestration and storage;

5) $100 million for a wood innovation grant program under section 8643 of the Agriculture Improvement Act of 2018, 7 U.S.C. § 7655d, including for the construction of new facilities and for the removal of material to reduce hazardous fuels to locations where such can be materialized.

The amount of each wood innovation grant issued under program (5) above must not exceed $5 million and the recipient must provide funds equal to at least 50% of the amount received. For other programs, where USDA enters into partnership agreements with the grant recipient, those agreements will be “subject to a non-Federal cost-share requirement of not less than 20 percent of the project cost,” unless that requirement is waived by USDA.

The amounts appropriated under section 23002 of the IRA shall remain available until September 30, 2031.

 

Eligible Entities:

Property Owner, State/Territorial Government, Local Government, Native American/Indigenous Community

Environmental Justice Considerations:

This section makes references made to underserved forest landowners and provides opportunities for waiver of non-federal cost share requirements at the Department of Agriculture’s discretion.

Current Status:

Funds Rescinded by Congress

Section 10201 of the One Big Beautiful Bill Act of 2025 (Public Law 119-21) rescinded unobligated funds under IRA section 23002(a)(1)-(a)(4).

Implementation Status at End of Biden Administration:

Complete

IRA appropriates a total of $550 million for climate mitigation and participation by forest landowners available until September 30, 2031. $100 million has been dedicated to a wood innovation program under Section 8643 of the Agriculture Improvement Act of 2018. It is likely that the remaining $450 million of the funding for access to emerging climate markets and climate mitigation for underserved forest landowners has also been made available.

As of January 2025, USDA has likely awarded over $100 million for wood innovation, including $50 million in October 2023 and $74 million in May 2024, although exact amounts of IRA funding are not available since the announcements are intermingled with other funding from IRA Section 23002 and the Bipartisan Infrastructure Law. Over $450 million has also been announced in total for access to emerging climate markets, including $150 million in August 2023, $145 million in March 2024, $15 million in August 2024, and $210 million in December 2024 for connecting underserved forest landowners with emerging climate markets.