The REAP (Rural Energy for America Program) is experiencing significant changes and interruptions as of November 2025. Grant and combined grant-loan applications are officially paused until September 30, 2025, due to an overwhelming backlog of applications, and USDA has not yet released new application guidance for Fiscal Year 2026. However, guaranteed loans may still be accepted and processed during this period, with special terms for Fiscal Year 2025, including up to 80% guarantee coverage for eligible projects.

Key Updates and Restrictions

• Funding Freeze and Delays: Earlier in 2025, the REAP program experienced a funding freeze due to an Executive Order that shifted federal support away from renewable energy. This resulted in delayed payments and paused applications, most of which resumed only in April 2025. The current application cycle, anticipated to open on October 1, 2025, has been delayed due to an ongoing backlog and policy changes.
• Solar and Wind Project Restrictions: The USDA now excludes ground-mounted solar systems larger than 50kW from REAP grants and loans, and prohibits the use of solar panels manufactured by foreign adversaries. Utility-scale solar farms on productive farmland are no longer eligible for incentives. Projects must demonstrate historical energy usage directly tied to the applicant’s facility, and speculative solar developments are not supported.
• Preserved Support for Small Projects: REAP continues to offer grants of up to $1 million for qualifying on-farm and rural business renewable energy or energy efficiency projects, with up to 50% coverage of project costs. Projects are now more tightly restricted, with a strong emphasis on farmland preservation, food security, and taxpayer accountability.
• Loan Guarantee Terms: For projects approved in FY 2025, loan guarantees can cover up to 80% of eligible project costs; past years’ limits were lower. Grant awards typically range from $2,500 to $1 million for renewable energy systems, and tax credits may still be applicable for certain solar and energy efficiency investments.

Program Outlook

• The REAP program remains popular and in high demand, but current USDA guidance is limited, causing uncertainty for new applicants and technical assistance providers. The most recent updates indicate that the USDA is working on releasing new rules and priorities, but has not finalized official guidance for the upcoming grant rounds as of November 2025.
• Applicants and stakeholders are encouraged to monitor USDA announcements for updated guidance and to plan for future application windows once the current pause is lifted.

In summary, as of November 2025, REAP is no longer accepting new grant proposals, has significantly restricted eligibility for solar projects, and is now prioritizing small-scale, on-farm, and rural business projects. Loan guarantees remain available for qualifying projects; however, future application opportunities depend on USDA’s forthcoming updates and the resolution of the current backlog.