Section 23003 of the IRA appropriates the following amounts to USDA:
1) $700 million for competitive grants to states under the Forest Legacy Program in Section 7 of the Cooperative Forestry Assistance Act of 1978, 16 U.S.C. § 2103(c), for the acquisition of land and interests in land. Applications that offer significant natural carbon sequestration benefits or provide benefits to underserved populations shall be prioritized; and
2) $1.5 billion for competitive grants to a state agency, local government entity, agency or governmental entity of the District of Columbia, Indian Tribe, or non-profit organization under the Urban and Community Forestry Assistance Program in section 9(c) of the Cooperative Forestry Assistance Act of 1978, 16 U.S.C. § 2105(c), for tree planting and related activities. Projects that benefit underserved populations shall be prioritized.
Section 23003 of the IRA also authorizes USDA, in its discretion, to waive any non-federal cost share requirements applicable to the above grants.
The funds appropriated under section 23003 shall remain available until September 30, 2031.
Eligible Entities:
Environmental Justice Considerations:
This provision contains references made to underserved communities, and includes a grant of authority to the Secretary of the USDA to waive non-federal cost share requirements at his/her discretion.
Current Status:
Section 10201 of the One Big Beautiful Bill Act of 2025 (Public Law 119-21) rescinded unobligated funds under IRA section 23003(a)(2).
Trump Administration Actions:
- Congress Passes Budget Bill, Rescinding Funds and Repealing IRA Programs and Tax Credits [07/03/2025]
- Litigation Compliance Report Indicates USDA Released Previously Frozen Awards [04/23/2025]
- OMB Orders Temporary Pause on Financial Assistance Programs, Later Rescinded [01/27/2025]
- OMB Clarifies Scope of the Order to Halt IRA Spending [01/21/2025]
- Trump Issues Executive Order to Halt All IRA Funding Disbursements [01/20/2025]
Implementation Status at End of Biden Administration:
IRA appropriates $700 million for the Forest Legacy Program and $1.5 billion for the Urban and Community Forest Assistance Program to be used by September 30, 2031. A total of $1,723,500,00 has been awarded. $545 million has been committed to the Forest Legacy Program, and $1,223,500,000 has been committed for the Urban and Community Forest Assistance Program. $476.5 million remains available to spend through September 30, 2031.
Biden Administration Actions:
- USDA Announces $265 Million in Funding for Forestland Conservation Projects [10/29/2024]
- USDA Announces $190 Million Grant Opportunity to Help Forest Landowners Address Climate Change [07/25/2024]
- USDA Announces Over $154 Million for the Forest Legacy Program [05/13/2024]
- USDA Announces $20 Million in IRA Funds to Tribes and Alaska Native Corporations to Address Climate Change [02/14/2024]
- New York Awarded $13.5 Million from Forest Service Urban and Community Forestry Program [10/13/2023]
- USDA Announces $1 Billion for Urban and Community Forestry Program Projects [09/14/2023]
- White House Releases IRA Guidebook for Tribes [04/04/2023]
Litigation:
In Cultivate KC v. USDA (formerly Butterbee Farm v. USDA) (filed March 13, 2025), farmers and nonprofit organizations sued USDA to compel the agency to unfreeze funds awarded under four IRA programs. On May 19, the plaintiffs filed an amended complaint. On June 2, USDA filed its answer to the amended complaint. On July 18, the plaintiffs filed a motion for summary judgment. On August 17, USDA filed a cross-motion for summary judgment.
In Urban Sustainability Directors Network v. USDA (filed June 5, 2025), Urban Sustainability Directors Network and other organizations sued USDA to challenge the termination of grant awards, including awards made under the IRA’s forestry conservation programs. On August 14, the court partially granted the plaintiffs’ motion for a preliminary injunction, enjoining USDA’s termination of awards. On August 29, USDA filed its answer.
On October 17, 2025 USDA filed an appeal of the partial preliminary injunction in the D.C. Circuit Court of Appeals. On December 5, the court granted the plaintiffs’ motion to hold the case in abeyance pending the outcome of similar cases, including Climate United Fund v. Citibank.