WASHINGTON, DC – U.S. Senator Tina Smith (D-MN), Senate Agriculture Committee Ranking Member Amy Klobuchar (D-MN), and House Agriculture Committee Ranking Member Angie Craig (D-MN02) are pressing the Trump Administration about the continued confusion surrounding key clean energy projects that help Minnesota farmers and small businesses lower their costs. This freezing of federal funding has hurt many farmers and small business owners’ bottom lines, especially those that put up their own money expecting to be reimbursed by the federal government. Rural Energy for America Program (REAP) funding is specifically set aside for agricultural producers and rural small businesses to install renewable, clean energy systems, or to make their operations more energy efficient. Example projects include installing energy efficient grain dryers, LED lighting and heat mats for livestock, solar panels, or energy efficient heating and cooling systems.
“We write to express our deep concern over reports that hundreds of contracted awards under the Rural Energy for America Program (REAP) remain frozen and inaccessible to Minnesota farmers and rural small businesses,” wrote the lawmakers. “This back and forth from the Department on a critical program has created a lot of uncertainty for rural communities in Minnesota.”
“Since its inception in the bipartisan Farm Bill in 2008, REAP has provided grants and loans that have helped more than 21,000 farms and rural businesses nationwide access affordable, renewable energy and energy efficiency systems,” the lawmakers continued. “Farmers have invested thousands of their own dollars into these projects because they are counting on the Federal government to uphold its commitments. At a time when the cost of operations is high and farmers’ access to markets is uncertain, supporting American farmers is critical.”
Senator Smith championed and strengthened the REAP program in the Inflation Reduction Act to help farmers cut their energy costs. She introduced the bipartisan, bicameral REAP Modernization Act, which would increase the cost share for REAP grants, raise certain grant limits, and improve the accessibility of the program to farmers and small businesses.
Full text of the letter is available here or below.
Dear Secretary Rollins,
We write to express our deep concern over reports that hundreds of contracted awards under the Rural Energy for America Program (REAP) remain frozen and inaccessible to Minnesota farmers and rural small businesses. In March, the U.S. Department of Agriculture (USDA) announced the release of previously frozen REAP funding. However, much of the REAP funding is still under review with grants still being frozen. This back and forth from the Department on a critical program has created a lot of uncertainty for rural communities in Minnesota.
In 2024, Minnesota received awards for more than 380 clean energy projects on farms and in rural communities through REAP, representing more than $44 million in investments that will help save each operation thousands of dollars a year.
These awards are part of REAP’s long history of popularity and success. Since its inception in the bipartisan Farm Bill in 2008, REAP has provided grants and loans that have helped more than 21,000 farms and rural businesses nationwide access affordable, renewable energy and energy efficiency systems. In 2022 alone, REAP supported nearly 2,500 different projects across the country to provide enough combined estimated energy savings and energy generation to power more than 250,000 homes per year.
In addition to diversifying our energy supply and making energy efficiency investments, REAP helps communities support good paying jobs, lower producer costs, advance “Buy American” manufacturing, and improve environmental quality. It is a win for farmers’ bottom line, and for the lands that they steward.
Farmers have invested thousands of their own dollars into these projects because they are counting on the Federal government to uphold its commitments. At a time when the cost of operations is high and farmers’ access to markets is uncertain, supporting American farmers is critical. As such, we request you provide written answers to the following questions by April 30, 2025:
- Which REAP awards have been frozen or terminated by USDA? When did USDA freeze or terminate these awards? Please list the award and the freeze or termination date.
- Has the USDA conducted any assessments of how freezing or terminating REAP awards have impacted producers and rural small businesses? If so, please provide a copy of any such assessments.
- What offices and staff are involved in decisions to freeze, unfreeze, or terminate REAP awards? Please list out names and affiliations, including anyone from the “Department of Government Efficiency”.
Thank you in advance for your attention to this matter. We look forward to receiving your prompt responses to our questions.
Sincerely,
Tina Smith
United States Senator
Amy Klobuchar
United States Senator
Ranking Member, Committee on Agriculture, Nutrition and Forestry
Angie Craig
Members of Congress
Ranking Member, Committee on Agriculture
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