Opportunity Information: Apply for USDA FS COMMUNITY WOOD 2026

  • The Forest Service in the natural resources sector is offering a public funding opportunity titled "2026 Community Wood Energy and Wood Innovation Program" and is now available to receive applicants.
  • Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 10.708.
  • This funding opportunity was created on 2026-02-18.
  • Applicants must submit their applications by 2026-04-22. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
  • Each selected applicant is eligible to receive up to $1,000,000.00 in funding.
  • Eligible applicants include: Others.
Apply for USDA FS COMMUNITY WOOD 2026

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Opportunity Summary:

The 2026 Community Wood Energy and Wood Innovation Program is a discretionary grant opportunity run by the USDA Forest Service that helps communities and businesses put wood to work in ways that improve forest health and strengthen local economies. The program is built around federal authorities that encourage rural revitalization and clean energy and manufacturing investments, including provisions in the Agriculture Improvement Act of 2018 and the Bipartisan Infrastructure Law. At its core, the Forest Service is looking to fund practical, near-term projects that expand the use of renewable wood energy and increase capacity for innovative wood products, with an emphasis on tangible results that can be completed within the grant period.

The Forest Service is specifically soliciting proposals that do two things: expand “thermally led” community wood energy and/or grow innovative wood products opportunities, while also improving forest health and stimulating local economic activity. “Thermally led” generally means the project is designed primarily to produce useful heat (for buildings, campuses, districts, or industrial processes), with optional combined heat and power where electricity may be generated as a secondary output. A major theme throughout the notice is that projects should be “shovel ready,” meaning they are far enough along in planning, permitting, design, financing, and execution readiness that they will not need extra time or additional funding to finish after the award period ends.

Eligible projects cover a wide range of capital investments tied to wood utilization. On the wood energy side, examples include installing community-scale wood energy systems that provide heating, cooling, and/or electricity and directly displace fossil fuels like coal, heating oil, propane, or natural gas. On the wood innovation and manufacturing side, eligible concepts include purchasing and installing production equipment for mass timber facilities, expanding sawmills to add higher-value product lines using innovative technology and cost-saving approaches, and equipping new facilities that convert forest residues into biofuels. The common thread is that the funding is meant to help move woody material into higher-value or energy-producing uses that can support restoration and hazardous fuels reduction while keeping more economic activity local.

In terms of funding, the Forest Service expects to make awards based on available appropriations and plans up to $6 million in total awards under this announcement. The typical maximum award is $1 million, and the Forest Service share is intended to cover up to 35 percent of a project’s total capital costs. The notice also leaves room for larger awards: the agency may consider up to $1.5 million covering up to 50 percent of total capital costs for proposals that merit special consideration, with areas of high unemployment called out as an example of where that higher federal share may be justified. This structure makes it clear the program is designed to catalyze larger projects rather than fully pay for them.

Although the program does not require formal “matching funds,” it does require leveraging, and the distinction matters in practice. Applicants must bring the remaining money needed to complete the project beyond the amount requested from the Forest Service. For example, if the Forest Service pays 35 percent of total capital costs, the applicant must commit to the other 65 percent from non-federal sources within the grant timeframe. Those non-federal dollars are treated as “leveraged funds,” which generally come with fewer compliance burdens than a required match, but they are still subject to program requirements. If any of the leveraged funding will come from partners or third parties, the application must include commitment letters confirming the amounts being provided, which is a key documentation item that applicants need to have ready at submission.

The applicant pool is broad and includes nonprofit organizations; local, state, and tribal governments; for-profit businesses, companies, and corporations; institutions of higher education; and special purpose districts such as public utility districts, fire districts, conservation districts, school districts, ports, and similar entities. The funding instrument is a grant, the administering agency is the Forest Service, and the program is categorized under natural resources (CFDA 10.708). The opportunity number is USDA FS COMMUNITY WOOD 2026, and the posted closing date is April 22, 2026. Applicants are directed to official program materials, including a Community Wood grant application form (FS-1500-0051), program instructions, and a factsheet, along with a prerecorded pre-application webcast intended to walk applicants through how to apply and what the Forest Service is looking for.

2026 Community Wood Energy and Wood Innovation Program (USDA Forest Service) - FAQs

What is the 2026 Community Wood Energy and Wood Innovation Program?

The 2026 Community Wood Energy and Wood Innovation Program is a discretionary grant opportunity administered by the USDA Forest Service. It supports communities and businesses that want to put wood to work in ways that improve forest health and strengthen local economies, with a focus on practical projects that can be completed within the grant period.

What is the Forest Service trying to fund through this program?

The Forest Service is specifically soliciting proposals that (1) expand thermally led community wood energy and/or (2) grow innovative wood products opportunities, while also improving forest health and stimulating local economic activity. A consistent theme is funding projects that are ready to move forward and deliver tangible results within the award period.

What does "thermally led" wood energy mean?

"Thermally led" generally means the project is designed primarily to produce useful heat (for buildings, campuses, districts, or industrial processes). Combined heat and power can be included, but electricity generation is considered secondary/optional compared to the thermal (heat) purpose.

What does "shovel ready" mean for this grant?

"Shovel ready" means the project is far enough along in planning, permitting, design, financing, and execution readiness that it can be completed within the grant period and will not require extra time or additional funding after the award period ends to finish.

What kinds of wood energy projects are eligible?

Examples of eligible wood energy projects include installing community-scale wood energy systems that provide heating, cooling, and/or electricity and directly displace fossil fuels such as coal, heating oil, propane, or natural gas.

What kinds of wood innovation or manufacturing projects are eligible?

Eligible concepts highlighted in the notice include purchasing and installing production equipment for mass timber facilities, expanding sawmills to add higher-value product lines using innovative technology and cost-saving approaches, and equipping new facilities that convert forest residues into biofuels.

What is the common goal across eligible projects?

The common thread is using the funding to move woody material into higher-value or energy-producing uses that can support restoration and hazardous fuels reduction, while keeping more economic activity local.

How much funding is available overall?

The Forest Service plans up to $6 million in total awards under this announcement, subject to available appropriations.

What is the typical maximum award amount?

The typical maximum award is $1 million.

What share of project costs will the Forest Service cover?

The Forest Service share is intended to cover up to 35 percent of a project's total capital costs.

Are larger awards possible?

Yes. The notice indicates the agency may consider awards up to $1.5 million covering up to 50 percent of total capital costs for proposals that merit special consideration. Areas of high unemployment are specifically called out as an example where a higher federal share may be justified.

Does this grant require matching funds?

The program does not require formal "matching funds," but it does require leveraging. In practice, applicants must bring the remaining funding needed to complete the project beyond the amount requested from the Forest Service.

What does "leveraging" mean here?

Leveraging means the applicant must commit enough non-federal funding to cover the portion of total capital costs not paid by the Forest Service. For example, if the Forest Service funds 35 percent of total capital costs, the applicant must provide the remaining 65 percent from non-federal sources within the grant timeframe.

Do leveraged funds need documentation?

Yes. If any leveraged funding will come from partners or third parties, the application must include commitment letters confirming the amounts being provided. This is a key documentation item the applicant needs to have ready at submission.

Who is eligible to apply?

The eligible applicant pool includes nonprofit organizations; local, state, and tribal governments; for-profit businesses, companies, and corporations; institutions of higher education; and special purpose districts such as public utility districts, fire districts, conservation districts, school districts, ports, and similar entities.

What type of funding instrument is this?

This opportunity uses a grant as the funding instrument.

Which agency administers the program?

The administering agency is the USDA Forest Service.

What is the program category or CFDA number?

The program is categorized under natural resources and is listed as CFDA 10.708.

What is the opportunity number?

The opportunity number is USDA FS COMMUNITY WOOD 2026.

What is the application deadline?

The posted closing date is April 22, 2026.

What application materials are referenced in the notice?

Applicants are directed to official program materials including the Community Wood grant application form (FS-1500-0051), program instructions, and a factsheet.

Is there any training or guidance available for applicants?

Yes. The opportunity references a prerecorded pre-application webcast intended to walk applicants through how to apply and what the Forest Service is looking for.

Is this program intended to fully fund projects?

No. The funding structure (typically up to 35 percent of total capital costs, with limited exceptions) indicates the program is designed to catalyze larger projects rather than fully pay for them.

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