2026 Community Wood Energy and Wood Innovation Program

The Community Wood Energy and Wood Innovation Program, administered by the U.S. Department of Agriculture (USDA) Forest Service, provides critical funding support to community-based projects that advance renewable wood energy systems and the manufacturing of innovative wood products. The program aligns with the agency’s objectives to improve forest health, stimulate rural economies, and reduce wildfire risks through the development of sustainable wood products infrastructure. This program is part of a broader national effort to bolster local economies, increase timber production, and retain domestic energy capacity while responsibly managing America’s forest lands. The 2026 Community Wood Grant targets shovel-ready projects that either install community-scale wood energy systems or build or expand wood product manufacturing facilities. These projects are designed to use low-value wood materials that often lack market demand, aiding forest restoration and promoting sustainable economic development in underserved or high-unemployment areas. The Forest Service gives funding priority to projects located where such wood markets are underdeveloped, or those that retrofit existing sawmill infrastructure and employ advanced pollution control technologies in regions lacking natural gas pipelines. Projects can involve new construction, equipment installation, or expansion of facilities, provided they are commercially viable and ready for immediate execution upon award. Awards can reach up to $1 million per project, and in exceptional cases—such as projects contributing to critical manufacturing infrastructure or located in distressed regions—up to $1.5 million may be awarded, contingent on prior approval. However, Forest Service funds may only cover up to 35% of total capital costs in most cases, and up to 50% only under approved special circumstances. Applicants must supply the remaining leveraged funds from non-federal sources. These leveraged funds must be committed at the time of application, with letters of support from third-party contributors confirming the funding. Costs that qualify as leverage include equipment purchases, design work, and site preparation, but not operating expenses, marketing, or land acquisition. Eligible applicants include nonprofit organizations, state, local, and tribal governments, higher education institutions, and for-profit entities. Applications must be submitted via Grants.gov by April 22, 2026. All applicants must be registered in the System for Award Management (SAM.gov) and possess a valid Unique Entity Identifier (UEI). The application must include form FS-1500-0051, budget forms SF-424 and SF-424A, and supporting appendices such as letters of support, resumes of key personnel, and any feasibility or engineering assessments. Submissions via mail, email, or fax are not accepted. Applications will be evaluated based on project clarity, alignment with program goals, potential forest and economic impact, technical merit, and qualifications of the project team. Proposals will be scored across several dimensions including forest health improvement, local job creation, technological innovation, and location in high-unemployment areas. Selected projects are expected to begin around August 2026 and must be completed within a 2- to 5-year performance window. Quarterly or semi-annual reports will be required to track outcomes such as job creation, wood volume utilization, and energy generation or cost savings. This funding opportunity recurs annually, with applications typically due each April. Award notifications are expected in June of the application year. The program strongly encourages applicants to consult with USDA Wood Innovations Coordinators prior to submission to determine project fit and competitiveness. Questions can be directed to the regional coordinators via contact information available on the USDA Forest Service Wood Innovations website, or emailed to [email protected].

Priority given to projects in areas of high unemployment, using stringent emission controls, or expanding manufacturing infrastructure.