Report on the Suspension of the USDA’s Rural Energy for America Program (REAP) and its Implications for Sustainable Development Goals

Executive Summary

• The U.S. Department of Agriculture (USDA) has suspended the application period for the Rural Energy for America Program (REAP) due to an overwhelming volume of applications and a subsequent processing backlog.
• REAP is a critical federal initiative for advancing several Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action).
• The suspension temporarily halts new funding opportunities for renewable energy and waste-to-energy projects in rural communities, impacting progress towards these goals.
• The USDA has announced the application period for fiscal year 2026 will reopen on October 1, 2025.

Program Overview and Alignment with Sustainable Development Goals (SDGs)

REAP provides grant and loan financing for renewable energy systems and energy efficiency improvements for agricultural producers and rural small businesses. The program’s objectives are strongly aligned with the United Nations’ SDGs:

• SDG 7 (Affordable and Clean Energy): The program’s core mission is to fund clean energy technologies, including solar, wind, and anaerobic digestion, making sustainable energy more accessible in rural areas.
• SDG 12 (Responsible Consumption and Production): By funding anaerobic digestion facilities, REAP supports circular economy principles, turning agricultural waste into a valuable energy resource and reducing overall waste generation (Target 12.5).
• SDG 13 (Climate Action): The promotion of clean energy and energy efficiency projects directly contributes to the reduction of greenhouse gas emissions, a key objective of global climate action.
• SDG 8 (Decent Work and Economic Growth) & SDG 9 (Industry, Innovation, and Infrastructure): Investments in these projects stimulate local economies, create jobs, and build resilient, sustainable infrastructure in rural regions.

Factors Leading to Application Suspension

1. Increased Funding and Demand: The Inflation Reduction Act of 2022 provided a significant financial boost to REAP, allocating over $1 billion for fiscal years 2023 and 2024. This led to a surge in program popularity and application submissions.
2. Application Backlog: The USDA stated the delay was a direct result of the “overwhelming response” which created a substantial backlog of applications requiring processing.
3. Recent Investment Activity: Prior to the suspension, the program was actively funding projects, including a $1 million grant awarded on January 10 for the construction of an anaerobic digestion facility in Kansas, highlighting the program’s tangible impact.

Legislative and Policy Context

• Bipartisan Legislative Interest: There has been bipartisan support in Congress for expanding REAP. Both House and Senate budget proposals included provisions to double the program’s maximum guaranteed loan amount to $50 million, though a short-term budget reauthorization was passed instead.
• Policy Shift on SDG-Related Priorities: The current administration has directed changes to the program’s focus. In March, Agriculture Secretary Brooke Rollins instructed REAP applicants to remove language related to diversity, equity, and inclusion (DEI) and certain climate priorities. This policy shift presents a challenge to the holistic achievement of SDGs that include social equity, such as SDG 5 (Gender Equality) and SDG 10 (Reduced Inequalities).

Future Outlook

• The USDA will utilize the suspension period to address the current backlog of applications.
• The next application window for REAP funding is scheduled to open on October 1, 2025, for the 2026 fiscal year.

SDGs Addressed in the Article

The article on the USDA’s Rural Energy for America Program (REAP) touches upon several Sustainable Development Goals (SDGs) by highlighting efforts to fund and develop renewable energy and waste management solutions in rural agricultural settings.

• SDG 7: Affordable and Clean Energy
• SDG 9: Industry, Innovation and Infrastructure
• SDG 11: Sustainable Cities and Communities
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 17: Partnerships for the Goals

Specific SDG Targets Identified

Based on the article’s content, the following specific targets can be identified:

1. SDG 7: Affordable and Clean Energy

   • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
     
     Explanation: The article directly mentions that REAP funds renewable energy technologies such as “solar, wind and anaerobic digestion” on farms. The program’s mission is to fund “clean energy technologies.”
   • Target 7.3: By 2030, double the global rate of improvement in energy efficiency.
     
     Explanation: The article states that REAP’s mission includes funding “energy efficiency projects” alongside clean energy technologies.
   • Target 7.a: By 2030, enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology.
     
     Explanation: Although the article focuses on the U.S., it details a significant government financial mechanism (REAP) to “promote investment” in clean energy. It mentions the USDA’s promise to “obligate more than $1 billion through fiscal years 2023 and 2024” and a proposal to double the loan amount to $50 million, which are direct financial commitments to clean energy infrastructure.

2. SDG 9: Industry, Innovation and Infrastructure

   • Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable… and greater adoption of clean and environmentally sound technologies.
     
     Explanation: The program funds the “construction of an anaerobic digestion facility on a farm,” which is a direct example of upgrading agricultural infrastructure with sustainable, clean technology to manage waste and produce energy.

3. SDG 11: Sustainable Cities and Communities

   • Target 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to… municipal and other waste management.
     
     Explanation: The article identifies REAP as one of the “largest programs in USDA that funds waste-related projects,” specifically mentioning anaerobic digestion. This technology directly addresses “other waste management” (in this case, agricultural waste), reducing its environmental impact.

4. SDG 12: Responsible Consumption and Production

   • Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.
     
     Explanation: Funding for anaerobic digestion represents a form of waste recycling and reuse, as it converts agricultural waste into a valuable resource (energy), thereby contributing to the reduction of waste.

5. SDG 13: Climate Action

   • Target 13.2: Integrate climate change measures into national policies, strategies and planning.
     
     Explanation: REAP is a national program that integrates climate goals into agricultural policy by funding clean energy. The article highlights this connection by mentioning the program’s boost from the Inflation Reduction Act and the political controversy over removing “far-left climate” priorities from applications.

6. SDG 17: Partnerships for the Goals

   • Target 17.17: Encourage and promote effective public, public-private and civil society partnerships.
     
     Explanation: REAP functions as a public-private partnership. The USDA (public sector) provides “grant and loan funding options” to applicants from the private sector (farms). The “overwhelming response and… backlog of applicants” indicates a high level of engagement in this partnership model.

Indicators for Measuring Progress

The article mentions or implies several indicators that can be used to measure progress towards the identified targets:

• Financial Flows for Clean Energy (Indicator for Target 7.a)

  The article provides specific monetary values that serve as direct indicators of investment in clean energy.

  • The USDA’s commitment to obligate “more than $1 billion through fiscal years 2023 and 2024.”
  • A specific “$1 million grant toward the construction of an anaerobic digestion facility.”
  • A proposed doubling of the “maximum guaranteed loan amount to $50 million.”

• Adoption of Renewable Energy Technologies (Indicator for Target 7.2)

  The article implies progress can be measured by the number and type of projects funded.

  • The number of funded projects for “solar, wind and anaerobic digestion.”
  • The “overwhelming response and… backlog of applicants” serves as an indicator of demand and potential for adoption of these technologies.

• Investment in Waste Management Infrastructure (Indicator for Targets 9.4 and 11.6)

  The funding and construction of specific facilities are key indicators.

  • The number of “waste-related projects” funded by REAP.
  • The number of new “anaerobic digestion facilit[ies]” constructed with program support.

Summary of SDGs, Targets, and Indicators

Source: wastedive.com