WASHINGTON, D.C. — The U.S. Department of Agriculture (USDA) announced a groundbreaking $6 billion investment to expand clean energy access and infrastructure in rural America. Delivered through the Empowering Rural America (New ERA) and Powering Affordable Clean Energy (PACE) programs, the funding aims to lower electricity costs, create jobs, and significantly reduce climate pollution.
The initiative, made possible by President Biden’s Inflation Reduction Act, represents the largest federal investment in rural electrification since the 1936 Rural Electrification Act. More than one in five rural Americans is expected to benefit through enhanced renewable energy access.
“In just two years, the New ERA and PACE programs have created dozens of new partnerships with rural electric cooperatives and communities that will reduce pollution, create jobs and make clean energy more affordable for millions of rural Americans,” said Agriculture Secretary Tom Vilsack. “These investments we’re making will continue to support the health, prosperity and well-being of rural Americans for generations to come.”
Transformational Projects Across States
Under the New ERA program, USDA is allocating $5.49 billion in grants and loans to support renewable energy projects in 21 states. These projects will harness solar, wind, and hydroelectric power, reducing reliance on fossil fuels while bolstering rural economies.
Examples of key projects include:
- Inside Passage Electric Cooperative (Alaska) will receive $7.4 million to construct a hydropower facility in Hoonah, providing clean energy to 543 homes, creating 25 jobs, and cutting annual climate pollution by nearly 1,548 tons.
- Great River Energy (Minnesota and North Dakota) will utilize $794 million to procure 1,275 megawatts of renewable energy, including large-scale wind projects. This effort is projected to create over 1,600 jobs, save members $40 million annually, and reduce emissions by 5.49 million tons each year.
- Seven States Power Corp. (Southeastern U.S.) will deploy $439 million to establish a 250-megawatt solar facility powering 113,000 homes. This initiative will create 100 jobs and reduce emissions by 291,000 tons annually while cutting project costs by $340 million through grants and interest savings.
Expanding Access Through PACE
Complementing New ERA, the PACE program is providing additional financing to extend affordable renewable energy access to disadvantaged communities, aligning with the administration’s Justice40 Initiative. This program prioritizes infrastructure improvements and resource accessibility for marginalized regions often overlooked in energy investment.
A Lasting Impact
Combined, the New ERA and PACE investments will reduce climate pollution by millions of tons annually, representing significant progress toward national energy goals. Since the start of the Biden-Harris Administration, USDA has worked to position rural America as a leader in renewable energy innovation, with major initiatives drawing on partnerships with rural electric cooperatives, state agencies, and private industry.
By advancing these clean energy programs, USDA underscores its commitment to climate resilience, energy independence, and economic revitalization in rural communities. These efforts pave the way for a greener, more equitable future across the nation.
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