In March 2025, USDA said it would release previously awarded Rural Energy for America Program (REAP) grants and loans. Separately, recipients were invited to voluntarily revise project plans to align with the administration’s policies, while USDA removed DEIA-based scoring priorities from 14 Rural Development funding opportunities. The invitation was not a universal requirement to receive payment, and applicants who had already submitted did not have to revise their applications to be considered.
That release did not fund every pending application or open a new application window. REAP’s rules and grant-award process changed again in 2026: USDA issued a new final rule in October, and says future annual notices will specify when applications can be submitted.
What USDA meant by “unfreezing” REAP funds
The March 2025 announcement concerned grants and loans that had already been awarded. It was not a promise to fund every application in the pipeline, nor did it mean new applicants could immediately apply. Money attached to an existing award, applications being accepted, and decisions on future awards are three different stages.
REAP is a USDA Rural Development program for eligible agricultural producers and rural small businesses. It supports renewable-energy systems and energy-efficiency improvements, as well as energy audits and renewable-energy development assistance. A March release about previously awarded money did not change the program’s eligibility rules for future applicants.
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Did USDA require recipients to remove DEI or climate language?
The formal change was to scoring priorities
On March 25, 2025, USDA amended 14 Rural Development funding opportunities to remove prior-administration DEIA “key priorities” and discretionary scoring points. The set included two REAP opportunities: renewable-energy and energy-efficiency grants, and energy-audit and renewable-energy development assistance grants. USDA’s notice said applicants who had already submitted did not need to withdraw, resubmit, revise, or supplement their applications to be considered.
The revision invitation was separate—and voluntary
GAO’s 2026 account says that USDA’s March 25 announcement gave recipients of REAP, Empowering Rural America, and Powering Affordable Clean Energy awards 30 days to review and voluntarily revise project plans. AP and Grist also reported that recipients were invited to make changes to align proposals with administration policy, including removing DEIA and climate-related language. That invitation is distinct from the formal change to scoring criteria. The published scoring notice alone does not establish a universal condition that recipients had to delete such language to receive payment.
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The available sources do not establish how many REAP awards were released specifically because recipients responded to the invitation. Avoid treating individual cases or figures covering multiple USDA programs as a count of REAP awards.
What happened after the March 2025 announcement?
| Date | USDA action | What it meant for applicants and award holders |
|---|---|---|
| March 25, 2025 | Removed DEIA-based scoring priorities from 14 Rural Development funding opportunities, including two REAP opportunities. | Already-submitted applications did not need to be changed to remain under consideration. |
| March 2025 | Announced release of previously awarded grants and loans; recipients were invited to review and voluntarily revise project plans. | The action concerned existing awards, not a general reopening of applications. |
| June 30, 2025 | USDA said the first FY2026 REAP grant window would not open as planned because of an application backlog. It anticipated accepting applications beginning October 1, 2025. | That anticipated date was later overtaken by subsequent changes; it is not a current application date. |
| March 31, 2026 | USDA said it would make no further REAP grant awards until new regulations took effect. | Applicants without a fully executed Financial Assistance Agreement could reapply under a future notice. Guaranteed loans were to continue. |
| October 1–2, 2026 | The Federal Register published the final rule on October 1; USDA announced it on October 2. | The rule sets new program terms. USDA says future annual notices will announce application windows. |
What changed in the October 2026 REAP rule?
USDA says the new rule changes project eligibility and how applications are handled. Its October 2 announcement describes the following provisions:
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- Solar photovoltaic and wind projects on cropland are disincentivized.
- Projects must be built and operational before the applicant applies.
- Certain multi-location projects and technology applications are excluded.
- Applications will use a national competition process.
Those descriptions are not a substitute for the final rule’s definitions, exceptions, and eligibility conditions. A project’s eligibility depends on the detailed rule and the applicable funding notice, not simply on whether it uses solar, wind, or efficiency equipment.
Can a new applicant apply now?
USDA’s October 2026 announcement says annual notices will give the dates when application windows open and close. The announcement itself does not provide those dates. Check the current USDA REAP funding notice for an open window, eligible project categories, required documentation, and funding priorities before preparing an application. Do not rely on the October 2025 date anticipated in USDA’s earlier backlog update.
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The March 2026 pause is also historical: it was tied to new regulations taking effect. The October rule supplies a new regulatory framework, but USDA’s announcement does not by itself establish a specific application deadline or guarantee that a grant window is open. A grant and a guaranteed loan are different funding routes; in March 2026 USDA said guaranteed loans would continue even while it paused new grant awards.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to read the figures attached to USDA’s review
GAO reported that USDA officials reviewed 42,627 unique USDA grants, cooperative agreements, direct loans, and other financial-assistance transactions as part of a broader review of Inflation Reduction Act and Infrastructure Investment and Jobs Act funding. That is the scale of the USDA-wide review, not a REAP grant count. GAO also reported that 34 awards remained frozen as of May 2, 2025, and that USDA had not provided an updated status by May 2026; those were IRA- and IIJA-funded awards, not 34 identified REAP grants.
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These figures should not be used to estimate how many REAP recipients changed their plans, how many REAP awards were released, or how much REAP funding reached recipients. The cited reporting does not provide a verified total for those outcomes.
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