Affordable Rural Cooperative (ARC) Energy Program 2026 Grant
USDA-RUS
In context
This call is open to co-operatives, at scale-up and mature. Funding is a grant. Coverage is read from the notice itself: United States.
This USDA-RUS programme funds rural electric cooperatives to deploy advanced transmission infrastructure and nuclear power to achieve net emission reductions and improve system reliability and affordability. Eligible cooperatives can access loans covering up to 75% of project costs, with grants and tax credits available to meet the required 25% equity contribution.
About this grant
The Affordable Rural Cooperative (ARC) Energy Program, administered by the Rural Utilities Service (RUS) of the USDA Rural Development mission area, is a forecasted discretionary opportunity with approximately $175 million in appropriated budget authority for loan and grant funds under the Inflation Reduction Act of 2022. The program forecasts about 20 awards in a loan and grant combination structure, under Assistance Listing 10.758. The program aims to help eligible rural electric cooperatives achieve future net reductions in emissions consistent with Section 22004 of the IRA. RUS plans to do this by funding the deployment of advanced, efficient transmission infrastructure and nuclear power supply. The stated goals are to increase emission-free power supply and transmission efficiency within rural electric systems, which should reduce future demand for other power sources, while advancing long-term resiliency, reliability, and affordability of those systems. The agency is soliciting Letters of Interest (LOI) before full ARC applications. Eligible entities bear their own costs of developing LOIs and applications. For Project and System loans, RUS will finance up to 75 percent of total capitalized project cost, and the awardee must provide at least 25 percent in cash or equity, which may in some cases include grant funds or expected tax credits, including elective pay amounts, where financially feasible. The equity may not come from loan proceeds from any creditor, including insiders of the awardee.
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Eligibility
Eligible applicants are electric cooperatives described in section 501(c)(12) or 1381(a)(2) of the Internal Revenue Code that currently are, or have in the past been, RUS electric loan borrowers under the Rural Electrification Act. Also eligible are electric cooperatives serving predominantly rural areas, defined as a service territory including at least 50 percent Rural Areas, and wholly or jointly owned subsidiaries of the cooperatives described in the first two categories.
Key requirements
- ✓Applicant must be an eligible rural electric cooperative
- ✓Project must achieve future net reductions in emissions consistent with IRA Section 22004
- ✓Applicant must provide minimum 25% equity in cash or equity (may include grant funds or tax credits); equity cannot come from loan proceeds
- ✓RUS will finance up to 75% of total capitalized project cost
- ✓Letter of Interest (LOI) required before full application; applicants bear own LOI and application development costs
Funder contact
The notice names a programme contact you can speak to before applying.
Frequently asked questions
- How much funding does USDA-RUS offer?
- Affordable Rural Cooperative (ARC) Energy Program offers $20M.
- When is the Affordable Rural Cooperative (ARC) Energy Program deadline?
- Applications close 20 Nov 2026.
- Who can apply for Affordable Rural Cooperative (ARC) Energy Program?
- Eligibility covers organisations in US; cooperative. See the eligibility criteria above for the full conditions.
Relevant sectors
How this compares
- Compared with 7 similar grants (grid mod in United States) listed in the last 12 months.
- This is the only similar grant from this organisation listed here in the last 12 months.
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Figures are computed from notices listed on Raise Lens in the same sector and country over the last 12 months.
About this sector
Grid modernisation covers transmission, distribution, smart meters, interconnectors and the software that balances a network with more variable supply. Funding comes as innovation calls for network operators and suppliers as well as large public tenders for equipment and works. Applicants are usually asked to show technical readiness and experience working with regulated network companies.
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