Tom Vilsack Secretary of U.S. Department of Agriculture (USDA) | Official Website
WASHINGTON, DC, August 16, 2024 – Two years ago, President Biden signed the Inflation Reduction Act, marking the largest investment in climate action and clean energy in history. This law is central to the Biden-Harris Administration’s Investing in America agenda and aims to lower energy costs, create new income streams, and address the climate crisis. The U.S. Department of Agriculture (USDA) has received significant resources through this act to better serve communities nationwide.
"Through the Inflation Reduction Act, the Biden-Harris Administration ushered in a new era of innovation, prosperity for rural communities, and climate preparedness,” said Agriculture Secretary Tom Vilsack. “The historic resources it provided have helped USDA meaningfully improve the lives of every American by lowering energy costs, reducing wildfire risk, and bringing more farmers into our high-demand conservation programs.”
In conjunction with other initiatives like the Bipartisan Infrastructure Law and the American Rescue Plan, the Inflation Reduction Act represents a substantial investment aimed at supporting rural communities' infrastructure needs while adapting to climate challenges. Across various USDA programs, this legislation increases access to affordable clean energy and promotes climate-smart agriculture and conservation practices.
These investments are part of the Biden-Harris Administration’s Justice40 initiative which seeks to ensure that 40 percent of federal benefits from certain climate-related investments flow to disadvantaged communities affected by underinvestment and pollution.
Building a Clean Energy Future
USDA is making its largest single investment in rural electrification since 1936. In 2023 alone, USDA allocated $13.2 billion for building electrification infrastructure in rural areas with clean energy solutions.
With funding from the Inflation Reduction Act:
- More than $525 million was provided for 14 new clean energy projects serving rural Americans through partially forgivable loans via the Powering Affordable Clean Energy (PACE) program.
- An investment of $605 million was made in 4,529 projects under the Rural Energy for America Program (REAP), aimed at renewable energy systems and energy-efficiency improvements.
- Announced $181 million for 222 projects through the Higher Blends Infrastructure Incentive Program (HBIIP) to increase biofuel availability.
- Plans to award $9.7 billion through the Empowering Rural America (New ERA) Program to assist rural Americans in transitioning to clean energy.
Investing in Climate-Smart Agriculture and Forestry
The act also provides unprecedented funding for USDA conservation programs focused on addressing climate change.
The National Resources Conservation Service (NRCS) received $19.5 billion for popular conservation programs offering financial assistance to farmers and ranchers. For Fiscal Year 2023 alone, NRCS invested over $2.8 billion across more than 45,000 contracts.
For Fiscal Year 2024 starting October 1, 2023:
- EQIP received $1.65 billion,
- RCPP got $754 million,
- CSP obtained $472 million.
Additionally:
- NRCS announced $90 million for Conservation Innovation Grant (CIG) projects.
- Invested $138 million in new climate-smart conservation easements through ACEP.
The act also included $300 million for improving greenhouse gas emissions measurement strategies within agriculture and forestry sectors.
Moreover:
- The Forest Service received an additional $4.9 billion from this act.
Notable Forest Service investments include:
- Over $1 billion for grants increasing equitable access to urban forests,
- Allocating $1.2 billion towards reducing wildfire risks,
- Funding private forest land conservation efforts with amounts totaling over several hundred millions.
Creating an Equitable Agricultural Future
This legislation continues investing in diverse agricultural workforces by improving access to land and capital while assisting distressed producers:
- Provided $2.4 billion aiding over 43,800 FSA loan borrowers,
- Allocated another $2 billion compensating those who experienced discrimination prior January 2021,
Programs launched include Increasing Land Access Program ($300 million), NextGen program ($262.5 million).
For further details on USDA's implementation visit: www.usda.gov/ira
Under current administration leadership; efforts transform America's food system focusing resilient local production fairer markets safe nutritious foods new markets using sustainable practices historical investments infrastructures commit equity remove systemic barriers build representative workforce visit www.usda.gov learn more about these initiatives underway today positively impacting lives across nation daily basis comprehensive manner possible now future ahead remains bright promising together forward!
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