USDA Grants: Rural Development, REAP & NIFA Guide (2026)

Full answer: USDA offers grants through two main channels: Rural Development (community infrastructure, business development, energy, and broadband programs) and NIFA (agricultural research, education, and extension). Most Rural Development grants require location in a rural area (under 50,000 population), though thresholds vary by program. Apply through RD Apply after contacting your state's USDA Rural Development office.

If you're a local government, rural nonprofit, agricultural producer, or rural business trying to access USDA funding, this guide covers the major programs, eligibility requirements, and how the application process actually works.

USDA Grants: The Complete Guide

Data note: Amounts may shift with annual appropriations.

USDA is one of the most underutilized federal funding sources outside of agricultural communities. Its Rural Development mission agency alone manages more than 40 loan and grant programs, and in many states, the state USDA Rural Development office is genuinely one of the most accessible federal agencies for small applicants. A common mistake is skipping the state RD office. USDA's community programs have a pre-application consultation step, and that step is where the program specialist tells you whether your project is a good fit, which program to use, and what the scoring criteria reward.

A community whose median household income falls below 60% of the statewide nonmetro median can qualify for the highest level of grant funding. That income figure, buried in Census tables, sets the grant-to-loan ratio.

Last updated: October 2026

For this update, Grantsights checked the current RBDG, REAP, VAPG, and ReConnect pages against the Forest Service Community Wood fact sheet and NIFA's Beginning Farmer and Rancher page in October 2026. Program status and award caps below reflect those pages.

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How USDA Grant Programs Are Organized

USDA grant programs are distributed across several agencies and mission areas. Understanding the structure helps you find the right program:

USDA Rural Development (RD): The primary source of community and economic development grants. RD has three service agencies:

• Rural Housing Service (RHS): housing grants and loans for rural families and communities
• Rural Business-Cooperative Service (RBCS): business development grants and loans
• Rural Utilities Service (RUS): infrastructure grants and loans for electric, water, telecom, and broadband

USDA National Institute of Food and Agriculture (NIFA): Research, education, and extension grants for agricultural universities, researchers, and extension services.

USDA Forest Service (FS): Community forestry, urban forestry, and watershed grants.

USDA Farm Service Agency (FSA): Primarily loan programs, but includes some grant components.

USDA Natural Resources Conservation Service (NRCS): Conservation practice payments (EQIP, CSP) are structured as cost-share payments rather than traditional grants.

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Community Facilities Grant and Loan Program

The Community Facilities (CF) program is the workhorse of USDA Rural Development. It funds construction, expansion, and improvement of essential community facilities in rural areas, including:

• Healthcare facilities (clinics, hospitals, assisted living)
• Public safety facilities (fire stations, police stations, EMS)
• Educational facilities
• Libraries
• Community centers and government buildings
• Childcare facilities
• Transitional housing

Eligibility: Public bodies (local governments, special purpose districts), nonprofits, and federally recognized tribal governments in rural communities with 20,000 or fewer people.

Funding structure: CF programs offer grants, loans, and loan guarantees. Grants are reserved for the most financially distressed rural communities and are typically combined with low-interest loans. Grant percentages depend on median household income and population: communities with median household income below 60% of the state nonmetropolitan median and populations under 5,000 may receive the highest grant percentage.

Loan rates: CF direct loan rates are set quarterly and depend on the community's population and median household income, with terms up to 40 years. Ask the state RD office for the current rate. For many rural communities, the loan portion is as valuable as any grant.

How to apply: Contact your USDA RD state or area office to start a pre-application conversation. CF applications require a pre-application (Form RD 3570-1) before the full application. The state office will tell you upfront whether your project qualifies and what grant percentage to expect.

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Rural Business-Cooperative Service Programs

RBCS runs the business development side of USDA Rural Development. Key grant programs:

Rural Business Development Grants (RBDG)

Funds technical assistance and business development services in rural areas. Two tracks:

• Opportunity grants: small business training and technical assistance (capped at 10% of annual RBDG funding in total)
• Enterprise grants: larger economic development projects (business incubators, revolving loan funds)

According to the RBDG program page, there's no maximum grant amount, but smaller requests get higher priority, and there's no cost sharing requirement. Eligible applicants: public bodies and government entities, federally recognized tribes, and nonprofits primarily serving rural areas. For-profit businesses can't apply. The FY2026 application window closed June 30, 2026 (June 15 for the SECD track).

Value-Added Producer Grants (VAPG)

VAPG helps independent agricultural producers develop markets for value-added products (turning grain into flour, milk into cheese, etc.). Awards:

• Planning grants: up to $50,000 for feasibility studies and business plans
• Working capital grants: up to $200,000 for operational expenses of a value-added enterprise

Eligible applicants: individual farmers, farmer cooperatives, agricultural producer groups, and farmer-based venture capital groups. Beginning farmers and socially disadvantaged farmers receive a reservation of funds.

Business and Industry Loan Guarantees (B&I)

B&I is primarily a loan guarantee program (not grants), but it enables commercial lenders to provide financing that wouldn't otherwise be available in rural areas. Guaranteed loan amounts up to $25 million (or $40 million for cooperative projects).

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ReConnect: Broadband Infrastructure Grants

The ReConnect program provides grants and loans for broadband infrastructure in rural areas lacking adequate service. Current status: USDA's ReConnect page says the agency isn't currently accepting applications "due to pending guidance and authorization." The last round was Round 5 (2024).

Eligibility (Round 5): At least 90% of the households in the proposed service area had to lack sufficient access to broadband, which the February 21, 2024 NOFO defined as 25 Mbps download and 3 Mbps upload, according to USDA's service area eligibility page. Funded networks had to deliver 100 Mbps symmetrical service to every premises.

Funding structure:

• Grants only: up to 75% of project cost
• Grant/loan combinations
• Loans only

The IIJA (Infrastructure Investment and Jobs Act) added $2 billion to ReConnect, and that money has largely been awarded.

Award sizes (Round 5): Grants up to $25 million; loans up to $50 million. Applications are competitive and technically complex. Most successful applicants hire consultants with broadband grant experience.

Who wins: Rural electric cooperatives, telecom cooperatives, and rural telephone companies with existing service infrastructure dominate the award pool. New entrants can compete but need a compelling technology plan and strong financial analysis.

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Rural Energy for America Program (REAP)

REAP funds renewable energy systems and energy efficiency upgrades for agricultural producers and rural small businesses. The Inflation Reduction Act significantly increased REAP funding, committing more than $2 billion through 2031.

Grant caps under recent notices: Energy efficiency projects up to $500,000 (up from $250,000). Renewable energy systems up to $1 million (up from $500,000). REAP ran quarterly competitions in FY2024.

Current status: USDA Rural Development's REAP page says the agency isn't accepting REAP grant applications at this time. Guaranteed loan applications can still be submitted, so check that page before you plan a grant request.

Eligible applicants: Agricultural producers (farmers, ranchers) and rural small businesses located in rural areas.

Eligible projects: Solar, wind, anaerobic digesters, small hydroelectric, geothermal, ocean energy, hybrid systems, and energy efficiency improvements.

Grant percentage: Grants cover up to 50% of eligible project costs (up to the dollar caps above). Loans cover up to 75%.

Application: REAP applications are submitted through RD Apply. Technical reports are required demonstrating energy production projections and project feasibility. Most agricultural producers need technical assistance to prepare the energy assessment.

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NIFA: Agricultural Research and Extension Grants

The National Institute of Food and Agriculture (NIFA) is USDA's research funding agency, analogous to NIH or NSF for the agricultural and food system sciences.

Competitive Grant Programs:

Agriculture and Food Research Initiative (AFRI): USDA's flagship competitive grant program. Awards range from $250,000 to $10 million. Funding priorities include sustainable agriculture, food safety, nutrition, rural development, and agricultural systems. Open to universities, nonprofits, and businesses. For the current Foundational and Applied Science competition, review our AFRI program page.

Specialty Crop Research Initiative (SCRI): Funds research, education, and extension for specialty crops (fruits, vegetables, tree nuts, dried fruits, horticulture nursery crops, and floriculture).

Organic Agriculture Research and Extension Initiative (OREI): Funds research on organic agriculture practices, market development, and adoption barriers.

Formula Funds:

NIFA also distributes formula funds through the Hatch Act (to state agricultural experiment stations), Morrill Act (to land-grant universities), and Smith-Lever Act (to Cooperative Extension Services). These go to institutions, not directly to individual researchers.

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USDA Forest Service Grant Programs

The Forest Service runs several grant programs for communities and nonprofits:

Urban and Community Forestry (UCF) Program: Funds local government and nonprofit tree planting, urban forest management plans, and community forestry activities. Most UCF money flows through state forestry agencies, though the Forest Service has also run national competitive rounds. Check your state forester for current amounts.

Community Wood and Wood Innovations grants: Grants for wood energy facilities and wood product manufacturing. According to the Forest Service Community Wood fact sheet, Community Wood grants go up to $1 million (up to 35% of capital costs). Wood Innovations grants are smaller (up to $300,000 in the latest listing). The FY2026 round closed April 22, 2026.

State and Private Forestry Programs: Includes hazardous fuel reduction grants, forest health protection, and cooperative forestry programs distributed to landowners and communities.

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Using the Rural Eligibility Map

Before investing time in any USDA Rural Development application, confirm your project location qualifies. USDA uses different rural definitions for different programs:

• Community Facilities: communities under 20,000 population
• ReConnect (Round 5): areas where 90% of households lacked 25/3 Mbps service, outside cities over 20,000
• REAP: rural small business or agricultural producer located outside urban areas
• VAPG: agricultural producer, no geographic restriction

Use the USDA eligibility map at eligibility.rd.usda.gov. Enter a specific address and select the program. The map will confirm whether that address qualifies. Some programs use the most recent census data; others use annually updated eligibility determinations.

Don't assume: a community of 8,000 can fail a specific program's definition, while an address in the suburbs of a mid-size city can qualify under agricultural producer definitions.

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How to Apply Through RD Apply

RD Apply (rdapply.usda.gov) is USDA's online portal for Rural Development applications. Steps:

1. Create an account: Register at RD Apply with your organization's UEI (required). Link your SAM.gov registration.
2. Contact your state office: Before submitting anything electronically, call or email your USDA RD state or area office. Introduce your project, confirm eligibility, and get assigned a contact.
3. Pre-application: Most programs require a pre-application or letter of intent before the full application. This screens eligibility and helps RD staff budget for the review workload.
4. Full application: Complete the required forms in RD Apply. Most applications require a project narrative, budget, site plans or architectural drawings (for CF), environmental review documentation, and letters of support.
5. Environmental review: USDA RD conducts an environmental review of most projects. This adds time (often 60-90 days) and may require additional documentation. Start gathering site information early.

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What USDA Grants Don't Tell You

USDA Rural Development staff generally want to help applicants get funded. This isn't true of every federal agency.

The mistake most communities make isn't a bad application. They don't call before applying. USDA RD state offices have program specialists who will tell you exactly what your application needs to say. They know the current funding levels, the priorities for this cycle, and whether your project is competitive. Use them.

The other thing most guides won't tell you: USDA grant and loan programs are often combined intentionally. The grant reduces the debt burden; the loan makes the project feasible. Don't screen yourself out because you think a "grant" means no repayment obligation on any portion. For large capital projects like water systems and healthcare facilities, the loan terms matter as much as the grant amount.

For more on USDA programs, see our USDA grants guide. For small business owners pursuing USDA RBDG or REAP, also see our federal grants for small businesses guide.

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USDA Rural Development Grant Programs: Quick Reference

Related Guides

• Value-Added Producer Grants
• USDA Rural Development Grants
• USDA REAP Grants
• Federal Grants for Rural Organizations

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Sources

• USDA Rural Development all programs: rd.usda.gov/programs-services/all-programs
• REAP Federal Register NOFO FY2025-2027: federalregister.gov
• VAPG program page: rd.usda.gov/programs-services/business-programs/value-added-producer-grants
• USDA eligibility map: eligibility.sc.egov.usda.gov
• ReConnect program: usda.gov
• RBDG program page: rd.usda.gov
• Beginning Farmer and Rancher Development Program: nifa.usda.gov

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FAQ

Q: Who is eligible for USDA Rural Development grants? A: Eligibility varies by program, but most USDA Rural Development grants require the project to be located in a rural area (generally defined as communities with 50,000 or fewer residents, though some programs use 20,000 or 10,000 thresholds). Eligible applicants typically include local governments, tribes, nonprofits, rural electric cooperatives, and small businesses depending on the specific program. Use the USDA eligibility map at eligibility.rd.usda.gov to check whether a specific address qualifies under a specific program's rural definition.

Q: What is the difference between a USDA grant and a USDA loan? A: USDA Rural Development offers both grants and loans, and many programs combine them. Grants don't require repayment; loans do. For Community Facilities, the majority of USDA assistance comes as low-interest loans (rates set quarterly by population and income tier), with grants limited to the most financially distressed communities and capped at a percentage of total project cost. VAPG offers standalone grants; REAP grant applications and ReConnect applications aren't being accepted right now. Understanding the grant-loan combination for a specific program is essential before applying because the loan portion significantly affects project feasibility analysis.

Q: How do I apply for USDA Rural Development grants? A: Most USDA Rural Development programs use RD Apply, USDA's online application portal at rdapply.usda.gov. Before applying, you need a UEI (Unique Entity Identifier from SAM.gov), and some programs require Grants.gov registration as well. Your first step should be contacting your USDA Rural Development state or area office. USDA RD staff are unusually accessible and will walk you through pre-application requirements, confirm eligibility, and identify whether loans or grants (or both) are appropriate for your project.

Q: What USDA grants are available for farmers? A: Several USDA programs target individual agricultural producers: VAPG funds feasibility studies and working capital for value-added agricultural products (up to $50,000 for planning and $200,000 for working capital (FY2026 caps)). REAP has funded renewable energy systems and energy efficiency upgrades for agricultural producers (up to $1 million for renewable energy systems), but USDA isn't accepting REAP grant applications right now. NRCS EQIP provides payments for conservation practices. The Beginning Farmer and Rancher Development Program is run by NIFA and funds collaborative networks and partnerships that train beginning farmers; individual farmers can't apply for it directly.

Q: What is the USDA ReConnect program? A: ReConnect is USDA's program to fund broadband infrastructure in rural areas lacking sufficient broadband service (in Round 5, at least 90% of households had to lack 25/3 Mbps service). ReConnect offers grants, loans, and grant-loan combinations, with grants up to $25 million in Round 5 (2024). USDA isn't currently accepting ReConnect applications, pending guidance and authorization. Eligible applicants include rural utilities, cooperatives, companies, state and local governments, and tribal governments.

Q: Does USDA fund nonprofits? A: Yes, several USDA programs are open to nonprofits. Community Facilities grants and loans serve nonprofits providing essential community services. Rural Business Development Grants (RBDG) fund nonprofits and government entities for technical assistance and business support. NIFA research grants fund nonprofits conducting agricultural research. USDA Forest Service Community Forestry and Urban and Community Forestry programs also fund nonprofits. Check specific program eligibility carefully, as some programs exclude certain nonprofit types.