USDA Rule Kills REAP Solar Funding for Rural Farms — SkimNews
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- USDA published final REAP rule changes on October 1, 2025, effective October 16, that bar solar projects containing parts from any "foreign adversary" country — and since most solar components are made in China, this effectively ends new solar funding through the program.
- REAP now also requires applicants to operate energy systems for one year before becoming eligible for reimbursement, further extending the funding timeline.
- Iowa Farmers Union joined a September 28 lawsuit against the USDA alleging the anti-solar changes violate the REAP statute and the Administrative Procedure Act.
- Trump's July 2025 executive order stated taxpayers would no longer "subsidize expensive and unreliable energy sources like wind and solar," which preceded the USDA's August and October rule changes.
- Earthjustice attorney Michael Youhana said the USDA is doing "the opposite of what Congress told them to do" — Congress created REAP in 2008 to fund renewable energy on farms.
- Matt Russell, executive director of the Iowa Farmers Union, said restricting REAP will accelerate agricultural industry consolidation, leaving only "the biggest, wealthiest operations" able to survive.
- USDA told Utility Dive that under Biden "fertile farmland that should be feeding America" was used for solar, and "those days are over" — the agency did not respond to Grist's request for comment.
Why it matters: REAP was created by Congress in 2008 to help farmers offset rising energy costs through renewable systems that lower utility bills and generate revenue. By exploiting Chinese supply chain dependencies in solar components and adding a one-year operational requirement, the USDA has effectively shut off that funding pipeline for the family farms and rural businesses that need it most, accelerating the consolidation Russell warns is coming.
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