As of February 24, 2025, the U.S. Department of Agriculture (USDA) has announced the release of approximately $20 million in funding for previously approved contracts that had been frozen due to the Trump administration's federal government overhaul. This funding will honor contracts under programs such as the Environmental Quality Incentive Program, Conservation Stewardship Program, and Agricultural Conservation Easement Program.
Brooke Rollins announced that USDA will release the first tranche of funding that was paused due to the review of funding in the Inflation Reduction Act (IRA). "In alignment with White House directives, Secretary Rollins will honor contracts that were already made directly to farmers. Specifically, USDA is releasing approximately $20 million in contracts for the Environmental Quality Incentive Program, the Conservation Stewardship Program, and the Agricultural Conservation Easement Program", the release reads.
Despite this release, the vast majority of funds remain on hold, including those tied to the Rural Energy for America Program (REAP). The freeze, initiated by President Trump's "Unleashing American Energy" Executive Order, has left many farmers and rural business owners in financial uncertainty. Despite federal judges ruling that departments can disburse these funds, many agencies, including the USDA, have not resumed payments, leading to confusion and financial strain among recipients. "Growers need these to stay competitive."
In addition to the import tariffs for Canadian, Chinese, and Mexican products, and the import tariffs for aluminium and steel, another effect is causing great insecurity in the US greenhouse market at the moment. The freezing of the USDA funds. One of the measurements affecting the greenhouse industry is the Rural Energy for America Program, shortened as REAP. The program, which last year was extended for another three fiscal years, was supposed to spread $600 million throughout rural America for projects like clean solar energy and energy efficiency. These projects can include grants as high as a million dollars per eligible project.
The Trump administration however, froze USDA funds, including REAP. The freeze stems from Trump's "Unleashing American Energy" Executive Order, which halted funds tied to the Inflation Reduction Act (IRA) and infrastructure law for at least 90 days.
The freeze affects not only new applications but also grants that had been previously approved. For instance, farmers who had invested in renewable energy projects with the expectation of REAP reimbursements are now left in limbo, unsure when or if they will receive the promised funds. While there is ongoing litigation challenging the legality of the funding freeze, and some courts have temporarily lifted the freeze, inconsistencies in fund distribution persist. As a result, there is currently no clear timeline for when already approved REAP grants will be paid. Recipients are advised to stay in close contact with USDA representatives and monitor official communications for updates on the status of their funding.
It results in financial uncertainty for growers throughout the USA, says Richard Rhyins with P.L. Light Systems. "The majority of P.L. Light Systems clients, which include many of the largest greenhouse farms in North America; the people who produce our nation's food, flowers and other crops, pay for a significant portion of the advanced technologies they need with grants and incentives", he explains. "Many cannot afford such advancements without financial help, and without that help cannot be competitive, and for some even survive. This is true for most advanced greenhouse technologies from lighting and HVAC to cogeneration and controls. Farmers need these things to stay competitive, and the departure of USDA grants is a major blow that will be felt very deeply and in every state."
Projects throughout the industry
As Richard already makes clear, it's not just the LED projects that are being affected. For example, Michael Protas, owner of One Acre Farm, had planned to use REAP funding for a $100,000 solar panel project but now fears he'll have to cover the full cost. The setback comes as a major customer ends its long-term purchasing relationship, adding to his financial strain. Similarly, Laura Beth Resnick, owner of Butterbee Farm, is struggling after signing a REAP-backed contract for $72,000 in solar panels. She worries she'll be liable for the cost if funding remains frozen. Though her solar provider has been understanding, she acknowledges the risks for farmers relying on grants and loans.
David Funk, owner of Zero Emissions Northwest, was even forced to lay off his four employees after $10 million in rural energy projects for 67 farmers in Idaho and Washington were halted. Funk's business, which provides energy audits and connects farmers with renewable energy solutions, had a $65,000 invoice frozen for work completed since October.
Judge
A federal judge ruled that the administration must release the funds, but the Justice Department has appealed the decision. Meanwhile, USDA has declined to clarify how many farmers and businesses are affected. Many REAP projects, largely funded through the IRA, remain stalled.
Yet, secretary Rollins says American farmers and ranchers are the backbone of the nation. "They feed, fuel, and clothe our nation—and millions of people around the world. The past four years have been among the most difficult for American Agriculture, due in no small measure to Biden's disastrous policies of over-regulation, extreme environmental programs, and crippling inflation. Unfortunately, the Biden administration rushed out hundreds of millions of dollars of IRA funding that was supposed to be distributed over eight years. After careful review, it is clear that some of this funding went to programs that had nothing to do with agriculture—that is why we are still reviewing—whereas other funding was directed to farmers and ranchers who have since made investments in these programs. We will honor our commitments to American farmers and ranchers, and we will ensure they have the support they need to be the most competitive in the world."
The secretary said this is the first tranche of released funding. "Additional announcements are forthcoming as USDA continues to review IRA funding to ensure that we honor our sacred obligation to American taxpayers—and to ensure that programs are focused on supporting farmers and ranchers, not DEIA programs or far-left climate programs."