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You are here: Home / Grant Duration / 3 Years / USDA/RUS: High Energy Cost Grants 2025

USDA/RUS: High Energy Cost Grants 2025

Dated: January 2, 2025

The Rural Utilities Service (RUS or the Agency), a Rural Development (RD) agency of the United States Department of Agriculture (USDA), announces funding availability under the High Energy Cost Grant (HECG) Program for fiscal year (FY) 2025.

Donor Name: Rural Utilities Service

State: All States

County: All Counties

Territory: Commonwealth of Puerto Rico, Guam, U.S. Virgin Islands, American Samoa, and Commonwealth of Northern Mariana Islands

Type of Grant: Grant

Deadline: 02/28/2025

Size of the Grant: More than $1 million

Grant Duration: 3 years

Details:

These grant funds will be made to qualified types of applicants to acquire, construct, extend, upgrade, or otherwise improve energy generation, transmission, or distribution facilities serving communities in which the average residential expenditure for home energy is at least 275 percent of the national average.  Grants may also be used for programs that install on-grid and off-grid renewable energy systems and energy efficiency improvements in eligible communities. Funding for FY 2025 will not be known until Congress passes an appropriations act.

The purpose of this program is to provide financial assistance for a broad range of energy facilities, equipment, and related activities to offset the impact of extremely high home energy costs on eligible communities. The grants help communities provide basic energy needs by financing energy infrastructure supporting rural prosperity and job creation.

Funding Information

  • Estimated Total Program Funding: $10,000,000
  • Award Ceiling: $3,000,000
  • Award Floor: $100,000.

Grant Period

The performance period will be three-years from the date of the Grant Agreement.

Eligibility Criteria 

  • Individuals
  • Small businesses
  • Special district governments
  • Nonprofits that do not have a 501(c)(3) status with the IRS, other than institutions of higher education
  • For profit organizations other than small businesses
  • City or township governments
  • Nonprofits having a 501(c)(3) status with the IRS, other than institutions of higher education
  • Independent school districts
  • Public and State controlled institutions of higher education
  • Native American tribal governments (Federally recognized)
  • Native American tribal organizations (other than Federally recognized tribal governments)
  • Public housing authorities/Indian housing authorities
  • Private institutions of higher education
  • County governments.

Additional Eligibility 

Grants are for projects that serve an eligible community; grants are not for the benefit of individuals or a single business. Individuals may apply on behalf of entities not yet incorporated but awards will not be made directly to individuals. Applicants must be located in the United States, a U.S. Territory or other area authorized by law to participate in programs of the Rural Utilities Service or under the Rural Electrification Act.

For more information, visit Grants.gov.

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