USDA Rural Development Funding in Doubt Amid Cuts, Closures
TL/DR –
The U.S. Department of Agriculture (USDA) has set up a path to release $10.8 billion for three rural energy programs funded by the Inflation Reduction Act, which had previously been frozen by the Trump administration. This funding will now have to align with President Donald Trump’s executive order for energy production and exploration on federal lands and waters. However, there are concerns that staffing reductions at the USDA could impact the disbursement of these funds.
Possible Staff Reductions and Office Closures at USDA
Workforce reductions and office closures are on the horizon at the U.S. Department of Agriculture (USDA) due to the planned release of $10.8 billion, including $2.5 billion in loan subsidies, from the Inflation Reduction Act to fund rural energy programs. Agriculture Secretary Brooke Rollins declared on March 25, 2025, that the USDA would release funding previously obligated under REAP, New ERA, and PACE programs, legally-binding commitments according to the Congressional Budget Office.
The announcement indicates that funding recipients have 30 days to adjust their project plans to align with President Donald Trump’s Unleashing American Energy executive order, which rescinds Biden-era clean energy orders and encourages energy production on federal lands and waters. The USDA has established a website for submitting proposed project changes before April ends.
After funds for these programs were frozen by the Trump administration, a federal judge ruled such actions illegal. The judge ordered that USDA and other agencies resume processing, disbursement, and payment of awarded funding promptly.
Uncertainty around Rural Energy Program Funding
The USDA’s Rural Development arm administers funding for the Rural Energy For America Program (REAP), Empowering Rural America (New ERA) program, and Powering Affordable Clean Energy (PACE) program. These programs offer grants and affordable loans to farmers, small businesses, and rural electric cooperatives to promote electrification and clean energy. There are concerns, however, that changes in USDA staffing could affect the disbursement of funds.
USDA Staff Reductions and Office Relocations
At the same time as the rural energy program funding release, a second “deferred resignation” offer has been extended to USDA employees. There are expected further job cuts and plans to close and relocate USDA offices, raising concerns about the department’s operational efficiency.
Changes in staffing could lead to an imbalance in capacity and expertise, further depopulating the Rural Development staff. This could result in slower responses to email inquiries and appointment requests, adversely affecting farmers, small businesses, and others who rely on Rural Development services.
—
Read More US Economic News