USDA Lifts Freeze on REAP/New ERA/PACE Funds

The U.S. Department of Agriculture (USDA) has lifted the freeze on three of its most substantial programs funding electric sector infrastructure investments. The action comes after the Trump administration’s Unleashing American Energy Executive Order required agencies, including USDA, to review their programs for alignment with the new Administration’s policies within 90 days of the inauguration. The resolution of the initial pause came ahead of the 90-day timeline, which implies that the Administration views the program as aligned with their policy to enhance energy independence.

USDA’s March 25th press release outlines that while funds from the Inflation Reduction Act (IRA) programs — Rural Energy for America (REAP), Empowering Rural America (New ERA), and Powering Affordable Clean Energy (PACE) — are now available, recipients may voluntarily modify their programs to align with USDA’s policies during a 30-day period that is closing soon. BEL has facilitated conversations between electric cooperatives and with industry experts to assist with their next steps and has been deeply involved in ensuring the program is a success since its inception. We can hardly wait to talk more about the program as the projects move forward to completion.