2026 Wood Innovations Grant Funding Opportunity

The Wood Innovations Grant Funding Opportunity is a competitive federal grant program administered by the U.S. Department of Agriculture (USDA), specifically through the Forest Service. This initiative is designed to stimulate, expand, and support markets for wood products and wood energy across the United States. It is grounded in legislative authorities such as the Agriculture Improvement Act of 2018, the Infrastructure Investment and Jobs Act, and other federal statutes, all aimed at addressing national forest management challenges, including the safe disposal of hazardous fuels and wood residues. The program focuses on leveraging wood-based solutions to strengthen rural economies, improve forest health, and mitigate wildfire risks. The grant opportunity emphasizes projects that reduce wildfire risk, lower forest management costs, and improve community environmental and economic well-being. Funded initiatives may include late-stage wood construction and energy projects, development of wood manufacturing capacity and infrastructure, statewide wood utilization teams, wood energy clusters in targeted sectors (e.g., healthcare, education, industry), and other efforts that showcase quantifiable benefits of wood use in construction. Early-stage project development is explicitly not competitive, and the program does not fund construction, mobile equipment, or operational labor costs. Funding under this opportunity totals up to $30 million from the Forest Service’s annual appropriations and the Infrastructure Investment and Jobs Act. Individual grant awards typically do not exceed $300,000, although exceptions allow up to $500,000 with demonstrated large-scale market impact. A special provision enables up to $1 million for high-efficiency stationary wood energy systems exceeding 5 Megawatts in thermal output. Matching funds are mandatory, requiring a 1:1 cost share, and must consist of non-federal contributions directly tied to project activities. Match contributions must be supported by third-party confirmation letters and cannot include construction, mobile equipment, or promotional expenses. Eligibility for the grant includes a broad range of applicants: for-profit entities, state and local governments, Indian Tribes, school districts, nonprofits, institutions of higher education, and special purpose districts such as conservation districts and ports. The program has a national scope, supporting projects across the United States without specific state or regional limitations. All applicants must be registered in the System for Award Management (SAM.gov) and submit their applications via Grants.gov. The application package must include required federal forms (SF-424, SF-424A), a project narrative using the FS-1500-0050 form with appendices, and documentation of match commitments. Applications for the 2026 funding cycle are due no later than 11:59 PM ET on April 22, 2026. Awards are expected to be announced in June 2026. The Forest Service strongly encourages applicants to consult with their Regional Wood Innovations Coordinators before applying to ensure project alignment with program goals and competitiveness. Proposals will be evaluated based on alignment with program goals, clarity of project design and deliverables, impact on wood product and energy markets, and qualifications of personnel and partners. Applicants are expected to submit detailed project budgets, demonstrate partnerships with wood industry stakeholders, and outline clear outreach and communication plans. Successful applicants will enter into cost-reimbursement agreements and will be required to submit quarterly or semi-annual progress and financial reports using Form SF-425. Recipients must comply with all federal regulations regarding equipment purchases, indirect costs, and use of U.S.-produced goods under 2 CFR § 200.322. While this is an annual grant program, it supports multi-year projects of up to five years, and the Forest Service may consider high-performing applications for future funding cycles under other USDA programs.

Consult your regional coordinator before applying; early-phase development proposals are noncompetitive; match letters must be included.