REAP Grant Changes in Farm Bill 2.0: What Sec. 9007 Does

TL;DR: H.R. 7567 (Farm, Food, and National Security Act of 2026) revises the Rural Energy for America Program (REAP) under Sec. 9007, adjusting grant cost-share caps and reauthorizing the program through fiscal year 2031. The bill keeps REAP as a grant and loan-guarantee program for farmers and rural small businesses while changing how project funding shares are calculated. Final figures remain subject to Senate action as of June 17, 2026.

Key takeaway

Farm Bill 2.0 reauthorizes REAP through FY2031 under Sec. 9007 and revises grant cost-share rules for rural energy projects.

What happened

The Rural Energy for America Program, known as REAP, is reauthorized and amended under Sec. 9007 of H.R. 7567, the Farm, Food, and National Security Act of 2026. REAP provides grants and loan guarantees to agricultural producers and rural small businesses for renewable energy systems and energy efficiency improvements.

The House-passed text continues REAP as a combined grant and loan-guarantee program administered by the United States Department of Agriculture (USDA) through its Rural Development mission area. The bill reauthorizes program funding through fiscal year 2031.

Under the revised section, the bill adjusts the maximum federal cost-share percentage that a grant may cover for an eligible project, along with per-project dollar caps. Exact percentage and dollar figures in the enrolled text remain to be confirmed pending Senate reconciliation. You can track the bill's progress on our vote tracker and review the full funding breakdown.

REAP sits within the Energy Title of the farm bill. The program has historically funded projects such as solar arrays, grain dryers, anaerobic digesters, and lighting and refrigeration upgrades on farms and at rural businesses.

What it means

For farmers and rural small business owners, the core REAP structure stays intact: grants and loan guarantees remain available for renewable energy and efficiency projects. The changes affect how much of a project's cost the federal grant can cover and the size limits on individual awards.

Key points for applicants:

• Eligibility: Agricultural producers and rural small businesses remain the primary eligible applicants under Sec. 9007.
• Project types: Renewable energy systems and energy efficiency improvements continue to qualify.
• Cost-share: The maximum grant share of total project cost is revised. Confirm the applicable percentage with USDA Rural Development before applying.
• Administration: USDA continues to run REAP through Rural Development.

Lenders working with rural borrowers should note that the loan-guarantee component continues alongside grants. Producers comparing the 2026 bill to prior law can review our what's new vs. 2018 comparison for side-by-side detail on the Energy Title.

The practical effect for many applicants depends on the final cost-share percentage. A lower federal share means applicants cover more of project costs out of pocket or through other financing. A higher share lowers the applicant's contribution.

What's next

As of June 17, 2026, REAP changes under Sec. 9007 are part of the House-passed H.R. 7567. The Senate has not finalized its version, and the cost-share and funding figures could change in conference or through amendment.

Applicants should watch for USDA Rural Development implementation guidance, which typically follows enactment and sets the application windows, scoring criteria, and final cost-share rules. Until the bill is signed and rules are issued, current REAP terms remain in effect for open application cycles.

Producers and rural business owners who want to weigh in can reach lawmakers through our contact Congress page. Follow Senate movement on our Senate status tracker.

Frequently asked questions

What is REAP in the farm bill?

REAP stands for the Rural Energy for America Program. It is a United States Department of Agriculture (USDA) program that provides grants and loan guarantees to agricultural producers and rural small businesses for renewable energy systems and energy efficiency improvements. In H.R. 7567, the Farm, Food, and National Security Act of 2026, REAP is reauthorized and amended under Sec. 9007 through fiscal year 2031.

What section of Farm Bill 2.0 covers REAP?

Sec. 9007 of H.R. 7567 covers the Rural Energy for America Program (REAP). It sits in the Energy Title of the bill. The section reauthorizes the program through fiscal year 2031 and revises grant cost-share caps and per-project dollar limits. Exact figures in the final enrolled text remain to be confirmed pending Senate action.

Who is eligible for a REAP grant?

Agricultural producers and rural small businesses are the primary eligible applicants for REAP grants and loan guarantees. Eligible projects include renewable energy systems such as solar and anaerobic digesters, plus energy efficiency improvements like grain dryers, lighting, and refrigeration. Specific eligibility details are set by USDA Rural Development, which administers the program and issues application guidance.

Did the REAP cost-share change in the 2026 farm bill?

Yes, H.R. 7567 revises the REAP grant cost-share rules under Sec. 9007, adjusting the maximum federal share of a project's cost and per-project dollar caps. The exact percentage in the final enrolled text remains to be confirmed as of June 17, 2026, pending Senate reconciliation. Applicants should confirm the applicable rate with USDA Rural Development before applying.

When do the REAP changes take effect?

The REAP changes under Sec. 9007 take effect after H.R. 7567 is signed into law and USDA Rural Development issues implementation guidance. As of June 17, 2026, the bill has passed the House but is not finalized in the Senate. Until enactment, current REAP terms remain in effect for open application cycles.