Thursday, October 22, 2026

Trump executive order ends USDA program meant to fund renewable energy in rural communities

After on-and-off legislation and a series of executive orders, the United States Department of Agriculture (USDA) announced changes to a program meant to help farmers and rural small businesses build renewable energy projects, Frida Garza reports for Grist. The change went into effect on Oct. 16

The changes disqualify solar development from funding through the Rural Energy for America Program (REAP). REAP used to support farmers seeking renewables like solar, which can cost up to tens of thousands of dollars. It allowed for lower utility bills, and farmers and business owners were able to sell excess power back into the grid. REAP’s padding could be a lifeline for those bearing the brunt of high fertilizer and gas prices.

The Iowa Farmers Union is one plaintiff in a case filed against the USDA last month, alleging the agency was already harming rural communities’ access to solar. The case targets the USDA for changing REAP following an executive order by President Trump, which stated taxpayers would no longer subsidize "unreliable" and "foreign" energy sources like wind and solar. A final rule change to REAP makes having renewables on cropland built with "any component made in a country named as a foreign adversary" ineligible for funding. Most solar system parts are manufactured in China.

REAP was created in the 2008 Farm Bill by Congress. Advocates say the changes to REAP defy Congress. "The lawsuit also alleges that these anti-solar moves from the USDA violate the Administrative Procedure Act, which essentially requires agencies to show that regulatory decisions were made through careful consideration."

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