Assistance to High Energy Cost Communities

High Energy Cost Grants
CFDA 10.859 Active Grant
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Program Funding

Annual program obligations reported to SAM.gov.

Latest annual funding (estimated)
$8M FY2026
$7.3M
FY24
$20.6M
FY25
$8M
FY26*
* estimated

Funded Projects

Examples of what this program has supported.

FY2025 Replacement of the electrical line from a diesel generation plant to the airport on a remote Alaskan island where the conduit was in danger of failing due to a highly corrosive environment.

Program Objective

The purpose of this grant program is to assure access to adequate and reliable energy services for persons in extremely high energy cost communities by providing financial assistance to acquire, construct, extend, upgrade, and otherwise improve energy generation, transmission, or distribution facilities serving the community.

Eligibility

Eligible Applicants

  • Unrestricted by Entity Type
  • U.S. Territory Government

Eligible applicants include States, political subdivisions of States, for-profit and non-profit businesses, cooperatives, associations, organizations, and other entities organized under the laws of States, Indian tribes, tribal entities, and individuals. The governments and entities located in any U.S. Territory/possession or other area authorized by law to receive the services and programs of the Rural Utilities Service or the Rural Electrification Act of 1936, as amended, are also eligible.

Beneficiaries

  • Specific Restrictions (Determined at NOFO Level)

Projects must serve rural communities in which the annual average residential expenditure for home energy is at least 275 percent of the national average. Energy cost eligibility benchmarks are included in the published Notice of Funding Availability.

How to Apply

Award Procedure

The authority to make awards is reserved to the Administrator of the USDA Rural Utilities Service.

Decision Timeline

  • Approval: From 120 to 180 days
  • Renewal interval: > 180 Days

Typically from 120 to 180 days. Selection of grant finalists will be announced approximately 90 to 180 days after the application deadline. Final Grant awards will be approved after completion of environmental review and other pre-obligation requirements.

Program details & compliance

Description

Eligible communities under this program are those where the average home energy costs exceed 275 percent of the national average under one or more high energy cost benchmarks established by RUS based on the latest available residential energy information from the Energy Information Administration (EIA) of the United States Department of Energy.

Mission Categories

Primary: Sustainability

Other categories:
Economic Development

Use of Funds

Allowed Uses

Funds must be used to acquire, construct, extend, upgrade, and improve energy generation, transmission, or distribution facilities serving communities in which the average annual expenditure for home energy costs is at least 275 percent of the national average. Energy efficiency and on-grid and off-grid renewable energy systems are eligible. Not more than 4 percent of amounts made available in grant funds may be used for planning and administrative expenses. Funds may not be used to pay utility bills, fuel costs, or operating expenses.

Restrictions

Funding may be used for long-lived infrastructure investments.

Reporting & Compliance

Records Retention
3 years

Applicable 2 CFR 200 Subparts

  • Subpart B — General Provisions
  • Subpart C — Pre-Federal Award Requirements
  • Subpart D — Post-Federal Award Requirements
  • Subpart E — Cost Principles
  • Subpart F — Audit Requirements

Formula

There is no statutory formula applicable to this program.

Contacts

Christopher McLean — Assistant Administrator, Electric Programs
2027209545
1400 Independence Ave., Stop 1560 , Washington, DC 20250
Data from SAM.gov Federal Assistance Listings. Source published: 2026-02-19. Spec v2.0. Last synced: 2026-05-28 07:26:30.