WASHINGTON, D.C. — America’s rural landscape is on the verge of an energy revolution. Earlier this month, Agriculture Secretary Tom Vilsack announced a massive $4.37 billion in loans and grants through the United States Department of Agriculture’s (USDA) Empowering Rural America (New ERA) Program. The historic investment—made possible by the Inflation Reduction Act—will enable rural electric cooperatives to deliver cleaner, cheaper, and more reliable energy to communities across the country. But this isn’t just about powering homes and farms—it’s about fueling economic opportunity and slashing climate pollution on an unprecedented scale.
“USDA is committed to enhancing the quality of life and improving air and water in our rural communities,” said Secretary Vilsack. “The Inflation Reduction Act’s historic investments enable USDA to partner with rural electric cooperatives to strengthen America’s energy security and lower electricity bills for hardworking families, farmers, and small business owners.”
This groundbreaking funding, the largest rural electrification effort since the 1936 Rural Electrification Act, aims to revolutionize how power is generated and distributed in rural areas. The projects will not only help lower energy costs for millions of Americans but also significantly cut down climate pollution—by more than 11 million tons annually—while supporting at least 5,000 jobs.
Changing the Face of Rural Energy
For decades, rural electric cooperatives have been the backbone of power delivery in America’s most remote regions, but outdated infrastructure and limited funding have made it difficult to keep up with modern energy demands. The New ERA program is flipping the narrative. By focusing specifically on supporting member-owned cooperatives, USDA is putting control back in the hands of communities while delivering major upgrades to the national grid.
This month alone, 10 cooperatives from Arizona to Minnesota were chosen to receive funding for projects that will harness cutting-edge technologies, including solar and wind energy, battery storage, and transmission upgrades. The goal? To make renewable energy the norm, not the exception.
Take Minnesota-based Connexus Energy, for example. The state’s largest electric cooperative will receive nearly $170 million to procure over 282 megawatts of renewable energy from hydro, solar, and wind sources. Connexus will also invest in 20 megawatts of battery energy storage, reducing energy costs and cutting over 1.1 million tons of climate pollution annually.
Other trailblazing projects include Colorado’s CORE Electric Cooperative, which will leverage $225 million to procure 550 megawatts of wind and solar energy and add 100 megawatts of battery energy storage. This project will stabilize energy costs for rural communities while driving the state closer to its net-zero emissions goals.
Meanwhile, in South Texas, San Miguel Electric Cooperative, Inc. is receiving over $1.4 billion—the largest investment in this round—to deploy 600 megawatts of solar power and battery storage. With the capacity to power 47 counties, this project will slash emissions equivalent to removing 446,000 cars from the road annually while creating up to 600 jobs.
A Green Future That Starts With Rural America
These projects represent more than clean energy—they’re a blueprint for economic opportunity and climate action. From small municipalities to expansive farmland, Americans living in rural counties will see tangible benefits in their daily lives. Lower energy bills. Better infrastructure. New jobs in solar farms, battery storage facilities, and upgraded electrical grids. But the impact ripples outward too.
Clean energy investments create a stronger, more resilient economy by reducing dependence on fossil fuels and ensuring communities are equipped to handle the challenges of the modern climate crisis. Take Nebraska’s Electric G&T, which is funneling $200 million into 725 megawatts of wind and solar energy across three counties. By accommodating enough energy to power 170,000 homes annually, this single project is proving how renewable technology can meet energy demands for growing rural populations.
Beyond the economic perks, one of the greatest victories is sustainability. With projects like Florida’s Seminole Electric Cooperative, Inc., which will reduce greenhouse gas emissions by 3.5 million tons annually (the same as taking 740,000 cars off the road), USDA is showcasing what nationwide climate action can achieve. These efforts to harness renewable energy come at a time when climate pollution and global warming have become existential threats to rural farmers and small businesses.
A Push for Equality
New ERA funding isn’t just reshaping how rural Americans receive energy; it’s targeting the communities that have been routinely ignored. Some of the funding is specifically directed towards disadvantaged and underrepresented areas, fulfilling the Biden Administration’s Justice40 Initiative, which ensures at least 40% of federal clean energy investments benefit marginalized communities overburdened by pollution and historical neglect.
For example, Yampa Valley Electric Association is using $50 million to expand solar energy and battery storage integration in disadvantaged regions spanning northwestern Colorado and southwestern Wyoming. This project also includes targeted scholarship programs to equip the workforce with job-ready skills.
Expanding the Reach
The $4.37 billion announced this month is just part of a larger vision. To date, USDA has provided nearly $9 billion in New ERA loans and grants to 15 cooperatives, with more awards expected in the coming weeks. According to USDA, one in five rural Americans will benefit from this sweeping effort to bring clean energy to rural America.
By tackling energy needs at the local level, the New ERA program ensures member-owned cooperatives remain at the forefront of the energy transition—without passing unnecessary costs onto consumers. For residents of remote towns or rural counties who have long felt left behind, this initiative signals a future built not just for them, but with them.
A Historic Shift
The New ERA program marks a seismic shift in both rural policy and energy reform. It’s no longer just about keeping the lights on—it’s about building a foundation for the next 100 years. With rural cooperatives leading the charge and USDA providing the tools and funding, the future of rural America is no longer tied to outdated systems or polluted environments. Clean, renewable energy is not just coming—it’s here.
The Biden Administration’s historic investment underlines one clear message: rural America isn’t just part of the conversation—it’s the heart of it. With this $4.37 billion push, the USDA is throwing down the gauntlet and declaring that the power of the future lies where it always has—in the hands of everyday Americans, working for a better tomorrow.
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