Opportunity Information: Apply for USDA FS WOOD INNOVATIONS 2026
Apply for USDA FS WOOD INNOVATIONS 2026
- The Forest Service in the natural resources sector is offering a public funding opportunity titled "2026 Wood Innovations Grant Funding Opportunity" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 10.674.
- 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 $300,000.00 in funding.
- Eligible applicants include: Others.
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Opportunity Summary:
The 2026 Wood Innovations Grant Funding Opportunity is a discretionary grant program from the USDA Forest Service (CFDA 10.674) aimed at rapidly growing wood products and wood energy markets across the United States in ways that directly support forest management on National Forest System lands and other forestlands. The central idea is to create stronger, more reliable demand for material generated through hazardous fuels reduction and forest restoration work, especially the lower-value wood residues that are costly to handle and dispose of. By strengthening end markets for this material, the program is meant to make restoration and fuels treatments easier to carry out at scale while also delivering local economic and environmental benefits.
This funding opportunity is framed around three priorities. First, it seeks to reduce wildfire risk and improve overall forest health by helping move hazardous fuels and restoration byproducts into productive uses instead of leaving them in the woods or paying for disposal. Second, it aims to reduce the costs of forest management on all land types by improving market conditions and infrastructure so that removed material has a viable value chain. Third, it intends to promote the economic and environmental health of communities by supporting projects that create jobs, stimulate rural and regional development, and expand the use of wood as a sustainable material and energy resource. The Forest Service ties this work to multiple federal authorities and policy goals, including the Agriculture Improvement Act of 2018, Rural Revitalization Technologies authorities, and the Infrastructure Investment and Jobs Act, emphasizing a national need to manage woody residues in practical, market-supporting ways.
The program is specifically focused on projects that are far enough along to make near-term progress, rather than concept-stage ideas. Competitive proposals are expected to be in the later stages of development, where grant funding can help complete the final technical, financial, and regulatory steps needed to secure financing and move into construction or implementation. Examples highlighted in the opportunity include finishing engineering designs, conducting cost analyses, and completing permitting for commercial construction projects that use wood as a primary building material, as well as similar late-stage development needs for wood energy projects. The announcement is explicit that early-phase project development proposals will not be competitive, which signals that applicants should be prepared to show concrete readiness, defined next steps, and a clear path to execution.
Beyond late-stage project readiness work, the opportunity supports several other categories of activities designed to expand wood utilization at a systems level. One major area is developing manufacturing capacity and the supporting infrastructure required to produce and deliver wood products that align with forest ecosystem restoration goals. That can include investments and planning that help connect restoration supply with processing capability and stable markets, especially for materials that might otherwise be difficult to monetize. Another eligible project type is demonstrating the quantifiable environmental and economic benefits of using wood in an actual commercial building, with an expectation that the project will not only prove benefits on one site but also provide a credible analysis of the benefits that could be achieved if similar approaches were replicated nationally based on commercial construction trends.
The Forest Service also calls out market-building and coordination work, including the establishment of statewide wood utilization teams and statewide wood energy teams. A key restriction applies here: only proposals from states that do not currently have, and have not formerly had, such a team will be considered. This indicates the agency is trying to expand geographic coverage of coordinated technical assistance and market development capacity rather than re-funding established teams. In addition, the program encourages development of clusters of wood energy projects within a geographic region or within a specific institutional or commercial sector, such as prisons, hospitals, universities, manufacturing, or other industrial settings. Related to that, proposals that directly address market barriers and stimulate expansion of commercial-scale wood energy adoption are also within scope, reflecting an emphasis on practical deployment and market conversion rather than research-only efforts.
Eligibility is broad and includes for-profit entities, state and local governments, Indian Tribes, school districts, nonprofit organizations, institutions of higher education, and special purpose districts such as public utility districts, fire districts, conservation districts, and ports. The award ceiling is listed as $300,000 per award. The opportunity listing does not specify the number of expected awards in the provided source data, so applicants should plan based on competitiveness and alignment with the stated priorities rather than assuming a particular volume of awards.
Applications must be submitted through Grants.gov by 11:59 PM Eastern Time on April 22, 2026. The agency also provides supporting materials through the Wood Innovations program, including the application form (FS-1500-0050), written instructions for the FY26 opportunity, a webinar, and a factsheet. Taken together, the program is best understood as an implementation-oriented market development grant: it is designed to move advanced wood products and wood energy projects across the finish line, strengthen processing and utilization infrastructure, and expand coordinated statewide capacity, all in service of reducing wildfire risk, lowering forest management costs, and improving community outcomes.
2026 Wood Innovations Grant (USDA Forest Service) FAQs
What is the 2026 Wood Innovations Grant Funding Opportunity?
The 2026 Wood Innovations Grant Funding Opportunity is a discretionary grant program from the USDA Forest Service (CFDA 10.674). It is designed to rapidly grow wood products and wood energy markets in the United States in ways that directly support forest management on National Forest System lands and other forestlands.
What problem is this grant trying to solve?
The program targets a major challenge in forest restoration and hazardous fuels reduction: large volumes of lower-value wood and woody residues that are expensive to handle and dispose of. By strengthening end markets and demand for this material, the program aims to make restoration and fuels treatments easier to implement at scale while supporting local economic and environmental benefits.
What are the main priorities of the program?
The opportunity is framed around three priorities:
- Reduce wildfire risk and improve forest health by moving hazardous fuels and restoration byproducts into productive uses rather than leaving them in the woods or paying for disposal.
- Reduce the costs of forest management across all land types by improving market conditions and infrastructure so removed material has a viable value chain.
- Support community economic and environmental health by creating jobs, stimulating rural and regional development, and expanding wood as a sustainable material and energy resource.
What types of projects does the grant support?
Based on the information provided, the program supports implementation-oriented projects that expand wood utilization and markets, including:
- Late-stage development activities that help wood products and wood energy projects reach construction or implementation (for example: completing engineering designs, cost analyses, and permitting).
- Manufacturing capacity and supporting infrastructure development needed to produce and deliver wood products aligned with forest ecosystem restoration goals.
- Commercial building projects using wood as a primary material that demonstrate quantifiable environmental and economic benefits and include analysis of potential benefits if replicated nationally.
- Statewide wood utilization team establishment (with restrictions described in another FAQ).
- Statewide wood energy team establishment (with restrictions described in another FAQ).
- Clusters of wood energy projects within a region or within specific sectors (such as prisons, hospitals, universities, manufacturing, and other industrial settings).
- Projects addressing market barriers and stimulating expansion of commercial-scale wood energy adoption.
Are early-stage or concept-only projects competitive?
No. The announcement emphasizes that competitive proposals are expected to be in later stages of development. Early-phase project development proposals are described as not competitive, and applicants are expected to show clear readiness, defined next steps, and a path to execution.
What does “late-stage project readiness” mean in this opportunity?
In the context of this grant, late-stage readiness refers to projects that are far enough along that grant funds can help complete final technical, financial, and regulatory steps needed to secure financing and proceed into construction or implementation. The examples provided include completing engineering designs, conducting cost analyses, and completing permitting.
Does the grant support wood energy projects?
Yes. The opportunity explicitly includes wood energy projects, including late-stage development needs, clusters of wood energy projects in a region or sector, and efforts that address market barriers to expand commercial-scale wood energy adoption.
Does the grant support wood use in commercial buildings?
Yes. One eligible project category is demonstrating the quantifiable environmental and economic benefits of using wood in an actual commercial building, along with a credible analysis of benefits that could be achieved if similar approaches were replicated nationally based on commercial construction trends.
What is meant by “developing manufacturing capacity and supporting infrastructure”?
This refers to work that strengthens the ability to produce, process, and deliver wood products in ways that align with forest ecosystem restoration goals. The description emphasizes connecting restoration supply with processing capability and stable markets, particularly for materials that are otherwise difficult to monetize.
What are statewide wood utilization teams and statewide wood energy teams?
The opportunity includes “market-building and coordination work,” including establishing statewide wood utilization teams and statewide wood energy teams. These teams are framed as a way to expand coordinated capacity for technical assistance and market development at the statewide level.
Who can apply to establish a statewide wood utilization team or statewide wood energy team?
A key restriction applies: only proposals from states that do not currently have, and have not formerly had, such a team will be considered. The intent described is to expand geographic coverage rather than re-fund established teams.
Is this grant limited to National Forest System lands?
No. While the program is designed to directly support forest management on National Forest System lands, it also applies to “other forestlands,” and its priorities include reducing the costs of forest management on all land types.
How does the program connect to wildfire risk reduction?
The program focuses on creating stronger demand and end markets for hazardous fuels reduction and forest restoration byproducts, especially lower-value residues. By making the removed material more usable and marketable, the program aims to support fuels treatments and restoration work that reduce wildfire risk and improve overall forest health.
How does the program aim to reduce forest management costs?
The program’s approach is to improve market conditions and infrastructure so that removed material has a viable value chain. When wood residues and restoration byproducts can be sold or used productively, it can reduce the need (and cost) for disposal and make treatments easier to carry out at scale.
What community benefits does the Forest Service emphasize?
The opportunity highlights economic and environmental community benefits, including creating jobs, stimulating rural and regional development, and expanding the use of wood as a sustainable material and energy resource.
Who is eligible to apply?
Eligibility is broad and includes:
- For-profit entities
- State and local governments
- Indian Tribes
- School districts
- Nonprofit organizations
- Institutions of higher education
- Special purpose districts (including public utility districts, fire districts, conservation districts, and ports)
What is the maximum award amount?
The award ceiling is $300,000 per award.
How many awards will be made?
The provided information does not specify the number of expected awards. Applicants should plan based on competitiveness and how well the proposal aligns with the stated priorities and eligible activity types.
When is the application deadline?
Applications must be submitted by 11:59 PM Eastern Time on April 22, 2026.
Where do applicants submit their application?
Applications must be submitted through Grants.gov.
What supporting materials are mentioned for this opportunity?
The agency references supporting materials through the Wood Innovations program, including:
- The application form (FS-1500-0050)
- Written instructions for the FY26 opportunity
- A webinar
- A factsheet
What kinds of outcomes is the program trying to achieve?
Based on the description provided, the program is intended to move advanced wood products and wood energy projects across the finish line, strengthen processing and utilization infrastructure, and expand coordinated statewide capacity, all in service of reducing wildfire risk, lowering forest management costs, and improving community outcomes.
What is CFDA 10.674?
CFDA 10.674 is the assistance listing identifier provided for this USDA Forest Service program in the opportunity description.
What federal laws or authorities are referenced as related context?
The opportunity ties the work to multiple federal authorities and policy goals, including the Agriculture Improvement Act of 2018, Rural Revitalization Technologies authorities, and the Infrastructure Investment and Jobs Act, emphasizing a national need to manage woody residues through practical, market-supporting approaches.
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