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By Marc Heller | 04/01/2026 01:08 PM EDT
USDA said it won’t accept grant applications on the rural energy program until new limits on renewable energy are in place.
Sheep graze at a solar farm at Cornell University in Ithaca, New York. Heather Ainsworth/AP
The Trump administration will suspend grants through a rural energy program, citing the “massive cost” of supporting solar and other renewable energy sources previously encouraged by the Agriculture Department.
In an announcement to stakeholders Tuesday, USDA’s Rural Development office said it’s holding off on grants through the Rural Energy for America Program until the administration finalizes regulations to put new limits on such energy sources.
“These changes reflect our commitment to ending the massive cost of providing taxpayer handouts for unreliable energy sources and follows administrative priorities of energy dominance, national security, economic growth, and the fiscal health of the nation,” the department said in the notice.
While solar energy won’t be barred from the program, the administration has said, the forthcoming changes will discourage larger-scale projects that generate electricity beyond the farms that receive many REAP grants. Other small businesses are also eligible.
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