Senate Farm Bill Maintains Important Rural Energy Opportunities
Every five years or so, Congress considers a new Farm Bill that shapes federal investments in agriculture, rural development, conservation, and energy programs that impact communities across the country. For rural communities, the Farm Bill plays a vital role in determining access to resources that help farmers, small businesses, and rural electric cooperatives. As Congress continues negotiations on the next Farm Bill, the Rural Power Coalition (RPC) is committed to advocating for programs that support investments in affordable rural energy.
The Senate Agriculture Committee’s release of the 2026 Senate Farm Bill represents an important step forward in protecting rural energy investments that support farmers, small businesses, and rural communities across the country.
RPC appreciates the leadership of Senator John Boozman, (R, Arkansas) and the Senate Agriculture Committee’s recognition that America’s growing energy needs require solutions that include rural communities. Programs that help farmers and rural businesses lower energy costs, strengthen grid reliability, and invest in new technologies are critical as electricity demand continues to grow across the nation.
The Senate proposal removes several concerning provisions from the House Agriculture and Appropriations Committees’ proposal. In our view, it is a positive sign that, the Senate text does not include the solar acreage restrictions that would limit access to USDA support for certain solar projects. This version of the bill also does not include proposed cuts that would eliminate Rural Energy for America Program (REAP) grant funding.
REAP has been one of USDA’s most successful rural energy programs, helping farmers and rural small businesses lower operating costs through energy efficiency improvements and renewable energy investments.
The Senate bill does propose changes to REAP and the Rural Energy Savings Program (RESP) that would broaden some program language rather than remaining specifically focused on renewable energy and energy efficiency.
Energy efficiency is critical, because the cheapest energy is the energy you don't have to produce.
While we are continuing to review these changes, our initial reading is that renewable energy and energy efficiency projects remain eligible. Maintaining access to these programs ensures rural communities can participate in and benefit from America’s rapidly changing energy landscape rather than being left behind.
The bill also includes several positive updates, including expanded technical assistance, simplified application pathways, increased project thresholds, and an energy-efficient equipment rebate pilot.
One provision we will continue monitoring is language restricting renewable energy development on certain federal lands, including wind, solar, geothermal, and related infrastructure within designated areas. While geographically limited, maintaining pathways for responsible energy development remains important as communities work to meet growing electricity demand. Based on our initial review, this provision is unlikely to significantly impact the resource planning efforts currently underway with rural electric cooperatives across the country.
Overall, when focusing on the rural energy provisions, the Senate Farm Bill is a promising starting point. It maintains important rural energy opportunities while avoiding several proposals that would have limited the ability to participate in meeting America’s growing energy needs and achieving American energy dominance.
We look forward to working with members of Congress to ensure the final Farm Bill continues supporting affordable, reliable, and locally driven energy solutions that strengthen rural communities.