USDA Pauses REAP Grant Applications for Q3 2025

What Rural Businesses & Farmers Need to Know

TL;DR

• USDA did not accept REAP grant applications from July 1 to Sept 30, 2025.
• Guaranteed loans stayed open on a rolling basis.
• USDA said the pause would give it time to work through a backlog of applications.
• At the time, we suggested using the pause to tighten technical studies, energy audits, and scoring narratives. The new REAP rule of October 1, 2026 changes much of that advice. See the update below.

Update: October 2, 2026

USDA published a new REAP final rule on October 1, 2026. It takes effect October 16, 2026. USDA is taking public comments until November 2, 2026, so details could still change (Federal Register doc 2026-20178). The key changes:

• Finish first, then apply. Your project must have been completed 12 to 24 months before you apply. For the first application window under the new rule, the range is 12 to 36 months (7 CFR §4280.122(a)(1)) (7 CFR §4280.122(a)(6)).
• Grant size. The grant covers up to 25% of project cost, and you pay at least 75% (7 CFR §4280.122(a)(3)). Requests run from $1,500 to $500,000 for renewable energy and $1,500 to $250,000 for efficiency (7 CFR §4280.122(a)(2)).
• New farm definition. An agricultural producer must be 100% owned by one person, or one person and their immediate family, or wholly owned by a Tribe. All owners must work in the operation, and the majority owner must earn at least 50% of their income from it (7 CFR §4280.104).
• Some projects are out. Ground-mount solar or wind on cropland no longer qualifies (7 CFR §4280.122(b)(11)). Neither do projects at more than one location (7 CFR §4280.122(b)(10)).
• New scoring and selection. Applications are scored out of 90 points, plus up to 10 priority points. The minimum is 40. Requests of $20,000 or less compete first for reserved funds. Then USDA funds the top application in each state (the top two if more than $100 million is available) before funding the rest in national rank order (7 CFR §4280.140(d)-(e)) (7 CFR §4280.150).
• Application dates. USDA publishes application dates on its website. Applications are due by 5:00 p.m. Eastern time on the published deadline (7 CFR §4280.133(a)).

Read what changed for eligibility, then check your own project with our eligibility tool.

The original July 2025 report follows. We changed it to the past tense and corrected advice that no longer fits the new rule.

Why Did USDA Hit “Pause”?

USDA Rural Development updated its REAP program page indicating a temporary suspension of grant and combo (grant + loan) submissions during Q3 2025. USDA said the pause would give it time to work through a backlog of applications. At the time, industry observers also pointed to:

• Record application volume after Inflation Reduction Act (IRA) funding boosts.
• Scoring backlog from prior quarters that had to be cleared before FY 2026.
• Potential rule tweaks aligning with new administration priorities (e.g., domestic manufacturing incentives and revised environmental review templates). A new rule did arrive. USDA published it on October 1, 2026.

What If I Already Submitted?

• Previously accepted application filings were expected to continue through scoring, with longer review times.
• Filings made between July 1 and Sept 30, 2025 were returned without review. We advised re-filing once the portal reopened.
• Guaranteed loan-only requests were unaffected and could proceed through OneRD.
• Under the new rule, an application with a Form 1940-1 “Request for Obligation of Funds” signed by the applicant and USDA before the rule’s effective date continues to be processed (7 CFR §4280.153).

How the Pause Affected Different Applicant Types

Rural Small Businesses

• We advised re-checking SBA size-standard documentation, since many firms outgrow thresholds by year-end. That still matters. The new rule requires an active SBA profile in SAM.gov that identifies you as a small business (7 CFR §4280.120(a)(2)).
• We also suggested finishing energy audits and refreshing pro formas with updated financials & utility tariffs. Under the new rule, efficiency projects need an Energy Assessment or Energy Audit (7 CFR §4280.131(b)(3)). Projects costing $200,000 or more need two years of pro forma financial statements (7 CFR §4280.131(a)(9)(ii)).

Agricultural Producers

Confirm you meet the new agricultural producer definition. The majority owner must earn at least 50% of their income from the agricultural operation, based on the most recent complete calendar year. The business must also be 100% owned by one person, or one person and their immediate family, or wholly owned by a Tribe (7 CFR §4280.104).

Gather your energy data. Renewable energy projects must include 12 consecutive months of energy use from before installation and 12 months of energy produced after (7 CFR §4280.131(b)(17)). Efficiency projects must show energy use before and after the improvement (7 CFR §4280.131(b)(17)).

Action Plan (Updated for the 2026 Rule)

Our original Q3 2025 plan assumed you would apply before building. The new rule reverses that, so we updated each step.

Priority	Recommended Task	Why Now?
1	Confirm your project was completed 12 to 24 months ago	Only completed projects in that window qualify (7 CFR §4280.122(a)(1)) (7 CFR §4280.122(a)(6))
2	Gather your technical report, invoices, and proof of payment	Your budget must list each cost with the dates it was incurred and paid (7 CFR §4280.131(b)(15)). Costs outside the Project Period are not allowed (7 CFR §4280.125(b)(21))
3	Update SAM & UEI	You must register with the “All Awards” option (7 CFR §4280.120(a)(1)). Registration can take up to 10 business days to become active, so do it before the rush.
4	Estimate your score	Scoring is out of 90 points plus up to 10 priority points, with a 40-point minimum (7 CFR §4280.140(d)-(e)) (7 CFR §4280.150). Try our score estimator
5	Book a free eligibility & scoring check with our team	Catch red flags early, before you file.

SEO-Rich FAQ

Is the USDA REAP grant still available in 2025? In 2025, grant applications were paused for Q3. REAP now runs under the final rule published October 1, 2026. USDA publishes application dates on its website (7 CFR §4280.133(a)).

Can I apply for a REAP loan during the pause? Yes. Guaranteed loans stayed open during the 2025 pause. Under the new rule, the grant and guaranteed loan together cannot cover more than 75% of project cost (7 CFR §4280.122(b)(20)).

Will the Q3 2025 pause affect FY 2026 funding levels? At the time, we reported that no reduction was planned and that USDA was realigning application windows. FY 2026 has since ended. Check the USDA REAP website for current application dates (7 CFR §4280.133(a)).

How can I improve my REAP score before the next deadline? Under the new rule, your project is already built when you apply, so your score mostly reflects the finished project. Project-based points come from:

Energy saved or produced per grant dollar requested, measured in BTUs (7 CFR §4280.140(d)(2)).

Percent of energy saved or replaced (7 CFR §4280.140(d)(3)).

Environmental benefits, such as producing no greenhouse gases (7 CFR §4280.140(d)(4)).

Simple payback (7 CFR §4280.140(d)(6)).

Our free scoring preview pinpoints weak spots and suggests fixes. You can also try our score estimator.

Get Ready for the Next Window

USDA’s 2025 mid-year freeze was inconvenient. Under the new rule, the best preparation is making sure your finished project and your paperwork meet every requirement. Book a complimentary REAP readiness call with Cleaner Greener Future today:

15-minute eligibility confirmation

Draft scorecard with improvement tips

Timeline checklist so you file before the 5:00 p.m. Eastern deadline (7 CFR §4280.133(a))