Grants / Department of Agriculture / Rural Utilities Service

Affordable Rural Cooperative (ARC) Energy Program

Open Closes November 20, 2026 (20 days left) Opportunity RUS-ARC-2026

• Award ceiling$20.0 million
• Award floor$100,000
• Expected awards30
• Total funding$175 million
• Cost sharingRequired
• Funding typeOther

Key dates

Add the deadline to your calendar

Who can apply

This opportunity is open to the applicants described in the notice.

• Others (see text field entitled "Additional Information on Eligibility" for clarification)

(1) Operating Electric cooperatives described in section 501(c)(12) or 1381(a)(2) of the Internal Revenue Code of 1986 who are currently or have been in the past a RUS electric loan borrower pursuant to the RE Act;(2) Electric cooperatives serving predominantly Rural Areas; or(3) Wholly or jointly owned subsidiaries of such electric cooperatives listed in (1) and (2).For the purposes of this program, the term “predominantly rural” as used in (2) in this paragraph shall mean a service territory that must include at least 50 percent Rural Areas

Is this a realistic fit?

• The notice requires cost sharing or matching funds, so you must contribute part of the project cost.

What the grant funds

The Rural Utilities Service (RUS or the Agency), a Rural Development (RD) agency of the United States Department of Agriculture (USDA), is soliciting Letters of Interest (LOI) for applications under the Affordable Rural Cooperative (ARC) Program. In addition, the Agency is announcing the eligibility requirements, application process and deadlines, and the criteria that will be used by RUS to assess ARC Applications. The ARC Program is making approximately $175 million in appropriated budget authority for the cost of loan and grant funds available under the Inflation Reduction Act (IRA) of 2022. In keeping with the statutory authority for the program, RUS will utilize the ARC funds to assist Eligible Entities to achieve future net reductions consistent with Section 22004 of the IRA through the deployment of advanced, efficient transmission infrastructure and nuclear power supply. Available funds will be allocated for each purpose while advancing the long-term resiliency, reliability, and affordability of rural electric systems. All Eligible Entities are responsible for any expenses incurred in developing their LOIs and ARC Applications. This funding notice advances the statutory purpose of achieving the greatest reductions as provided in Section 22004 of the IRA associated with rural electric systems by increasing the amount of emission-free nuclear power and increasing the efficiency of the transmission grid within such systems. These new sources of cooperative power supply and enhanced transmission efficiency will result in reduced future demand for other sources of power. Cost Sharing or Matching: For Project and System loans, RUS will finance up to 75 percent of the total capitalized cost of the Project in the loan component of a Project and/or System Award. The Awardee will be required to initially provide and maintain for the term of the Project and/or System Award at least 25 percent of the Project’s total capitalized cost in the form of cash or an equity investment. As noted in Section 2.0 of the NOFO, the Agency may where Financially Feasible allow an Awardee to utilize the grant component of the Award and/or any applicable tax credit that it expects to receive (including credit amounts expected to be received through Elective Pay elections under section 6417 of the Internal Revenue Code) toward the 25 percent equity requirement for a Project Award.

Category: Energy.

How to apply

1. Read the full notice and attachments on Grants.gov and the agency's announcement. The notice is the official source for deadlines and requirements.
2. Make sure your organization has an active SAM.gov registration and Unique Entity ID; registration can take several weeks.
3. Register on Grants.gov and submit through Workspace before the deadline and time given in the notice. Our application guide walks through each step.

Questions go to Amy A McWilliams, Grantor, SM.RD.RUS.ARC-Questions@usda.gov, 2022058663.

Open the official notice