Senators Press USDA to Restore REAP Upfront Payments
Minnesota's Klobuchar and Smith lead 21 senators urging USDA to reverse a rule that delays farm energy grants until projects are finished.
Updated on Nov. 5, 2026 in Agriculture
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Senators Amy Klobuchar and Tina Smith, both Democrats from Minnesota, joined 21 senators in a letter to USDA Secretary Brooke Rollins urging the department to reverse changes to the Rural Energy for America Program. The USDA rule, effective October 1, now pays REAP grants only after projects are fully built and operational.
Why it matters
The senators argue the new payment timing would shut out many intended beneficiaries at a time when energy costs are rising, while favoring farmers who can fund projects without federal help. Under the previous structure, REAP provided grant money upfront to help farmers make a down payment on equipment.
The letter was signed by 21 senators and sent to USDA Secretary Brooke Rollins on October 23, 2025. The USDA rule has been in effect since October 1, and the senators' requested written response is due November 5.
The players
Amy Klobuchar
Amy Klobuchar is a Democratic U.S. senator from Minnesota who has long focused on agriculture and rural policy.
Tina Smith
Tina Smith is a Democratic U.S. senator from Minnesota who has worked on rural economic and energy issues.
Brooke Rollins
Brooke Rollins is the U.S. Secretary of Agriculture, leading the department that administers the Rural Energy for America Program.
The details
Under the new USDA rule, farmers cannot apply for REAP until their projects are fully built and operational, and they are not guaranteed to receive a grant. REAP funds energy upgrades such as energy-efficient grain dryers and solar panels for farmsteads, and the senators have asked the department to restore the earlier upfront payment approach.
Timeline
October 1, 2025: The USDA rule changing REAP payments took effect.
October 23, 2025: Senators sent their letter to USDA Secretary Brooke Rollins.
October 31, 2025: Senators requested a staff briefing from USDA.
November 5, 2025: Senators requested a written response from USDA.
Market Landscape
The change alters how the Rural Energy for America Program, a long-standing federal grant initiative for farm energy projects, delivers funding to producers. It shifts financial risk onto farmers, who must now finance projects before receiving federal support, a structure that favors operations with existing capital.
Farmers planning energy upgrades such as grain dryers or solar panels may need to cover project costs upfront, since REAP grants will not arrive until installation is complete. Applicants should also be aware that receiving a grant is no longer guaranteed under the new rule.
The takeaway
The REAP payment change shifts the upfront cost of farm energy upgrades onto producers, making timing and available capital central to who can take advantage of the program. Farmers weighing REAP projects should confirm current USDA requirements before committing funds.
What happens next
The senators requested a staff briefing from USDA by October 31, 2025, and a written response by November 5, 2025.
Further reading
For related coverage of farm policy and grant programs, explore more in Agriculture.
Source note: This article includes information reported by Herald Journal Publishing -.
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