U.S. Agriculture Department Announces $194 Million for Economic Development and Clean Energy Projects in Rural Communities

The U.S. Department of Agriculture on Dec. 4 announced $194 million in grants and loans through its Rural Partners Network, or RPN, to fund family farms, small businesses, infrastructure and clean energy in underserved rural and tribal communities across 14 states and Puerto Rico. The projects will help these communities address immediate challenges and facilitate sustainable economic growth.

In southeast Alaska, the funds will finance improvements to a hydroelectric plant to expand clean power access to Prince of Wales Island residents. The funds will also support local businesses and create job opportunities around Thorne Bay.

In Kentucky, the funding will help Appalachian communities upgrade sewer systems and install solar arrays to save costs for small businesses.

In Wisconsin, the investments will focus on projects that improve water and well systems in Tribal and underserved communities, and install solar power to help small agricultural businesses save energy costs.

Launched by the Biden administration in April 2022, the RPN ensures federal funding is channeled into rural and underserved communities, with support from 25 federal agencies and regional commissions. Since its launch, the RPN has received $8.5 billion in federal funding.

Financing clean energy projects in rural communities has been a priority for the department. In November, the department announced $256 million in funding for its Rural Energy for America Program, or REAP. This program expands access to renewable energy sources such as solar, wind, and hydropower which typically have high startup costs, to rural communities and agricultural businesses. The program not only helps create jobs in rural communities but also reduces greenhouse gas emissions in heavy-polluting industries like agriculture.

Supported by the 2022 Inflation Reduction Act, the program will use this funding to support 1,100 clean energy projects in 40 states. Since 2021, the department has invested $2.7 billion via REAP to finance 9,901 improvements in renewable energy and energy efficiency.