Affordable Rural Cooperative (ARC) Energy Program
🏛 Rural Utilities Service
✓ Free, no account · Source: Grants.gov · Last verified Oct 8, 2026
Can you apply?
This grant is for rural electric cooperatives and utilities seeking to deploy advanced transmission infrastructure or nuclear power to reduce emissions. Applicants must be entities eligible under the Rural Utilities Service programs serving rural electric systems. The program prioritizes emission-free power generation and grid efficiency improvements that benefit rural communities. All applicants must provide 25 percent cost-sharing, typically through cash or equity investment. Eligible entities include rural electric cooperatives, public utilities, tribal entities, and similar rural power providers.
⚖️ Cost sharing / matching required — applicants must contribute their own funds.
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Program description
The Rural Utilities Service (RUS or the Agency), a Rural Development (RD) agency of the United States Department of Agriculture (USDA), is soliciting Letters of Interest (LOI) for applications under the Affordable Rural Cooperative (ARC) Program. In addition, the Agency is announcing the eligibility requirements, application process and deadlines, and the criteria that will be used by RUS to assess ARC Applications. The ARC Program is making approximately $175 million in appropriated budget authority for the cost of loan and grant funds available under the Inflation Reduction Act (IRA) of 2022. In keeping with the statutory authority for the program, RUS will utilize the ARC funds to assist Eligible Entities to achieve future net reductions consistent with Section 22004 of the IRA through the deployment of advanced, efficient transmission infrastructure and nuclear power supply. Available funds will be allocated for each purpose while advancing the long-term resiliency, reliability, and affordability of rural electric systems. All Eligible Entities are responsible for any expenses incurred in developing their LOIs and ARC Applications.
This funding notice advances the statutory purpose of achieving the greatest reductions as provided in Section 22004 of the IRA associated with rural electric systems by increasing the amount of emission-free nuclear power and increasing the efficiency of the transmission grid within such systems. These new sources of cooperative power supply and enhanced transmission efficiency will result in reduced future demand for other sources of power.
Cost Sharing or Matching:
For Project and System loans, RUS will finance up to 75 percent of the total capitalized cost of the Project in the loan component of a Project and/or System Award. The Awardee will be required to initially provide and maintain for the term of the Project and/or System Award at least 25 percent of the Project’s total capitalized cost in the form of cash or an equity investment.
As noted in Section 2.0 of the NOFO, the Agency may where Financially Feasible allow an Awardee to utilize the grant component of the Award and/or any applicable tax credit that it expects to receive (including credit amounts expected to be received through Elective Pay elections under section 6417 of the Internal Revenue Code) toward the 25 percent equity requirement for a Project Award. Such financial equity may not come from the proceeds of any loan from any creditor, including insiders of the Awardee.
Who can apply
Eligible applicants
How to apply
Application links
Key dates & requirements
Required documents
- Letter of Interest (LOI)
- Financial statements and creditworthiness documentation
- Detailed project plan with technical specifications
- Cost-benefit analysis and emissions reduction projections
- Evidence of cost-sharing commitment (25 percent equity)
- Board resolutions or organizational authorization
- Environmental review documentation (NEPA compliance)
Program contact
- 👤 RUS Electric Program Grantor
- 📧 SM.RD.RUS.ARC-Questions@usda.gov
- 📞 (202) 690-4492
Funding track record
Recent awards under CFDA 10.758 from the last 3 years — real organizations that won funding through this same program.
Top 10 Largest Recent Awards
-
$794,354,472
-
$676,796,440
-
$651,624,032
-
$481,985,251
-
$431,395,785
-
$396,682,809
-
$316,862,500
-
$306,464,331
-
$261,606,800
-
$227,882,710
Top States by Funding
- MN 10 awards $976.1M
- ND 4 awards $856.6M
- CO 12 awards $799.3M
- IN 1 awards $676.8M
- MI 1 awards $651.6M
Source: USAspending.gov — federal spending transparency. Data covers last 3 years.
Funding history
Annual funding for this program — Federal obligations (CFDA 10.758). How funding has trended year over year.
| 2024 | $2,040,852,232 | |
| 2025 | $14,217,934,577 | |
| 2026 est. | $233,387,900 |
FAQ
What types of organizations can apply for ARC funding?
Rural electric cooperatives, municipal utilities, tribal utilities, and similar entities serving rural electric systems are eligible. Contact RUS to confirm your organization's eligibility status.
What is the cost-sharing requirement?
Applicants must provide at least 25 percent of total capitalized project cost. RUS finances up to 75 percent through the loan component; grants and tax credits may count toward your equity share.
What projects are funded under ARC?
The program funds nuclear power deployment and advanced transmission infrastructure improvements that reduce emissions in rural electric systems. Both components must advance system reliability and affordability.
How competitive is this funding?
This is highly competitive federal funding focused on complex infrastructure projects. Strong applications demonstrate long-term emissions reduction, system benefits, and financial sustainability.
What is the funding range per award?
Award amounts vary based on project scope and capitalized costs. Contact RUS for typical award sizes and current funding availability.
💡 Tips for applicants
- Submit a strong Letter of Intent first if required; this signals serious commitment and allows RUS early feedback on project feasibility.
- Develop detailed financial models showing how your 25 percent equity will be sourced and sustained throughout the project period.
- Document long-term emissions reductions and system reliability improvements; demonstrate how nuclear or advanced transmission directly benefits rural ratepayers.
- Engage RUS early in planning to confirm technical and financial feasibility before investing in a full application.
- Build partnerships with other utilities, suppliers, and financial institutions to strengthen your competitive position and reduce financial risk.
⚠️ Common mistakes
Underestimating the cost-sharing burden or relying solely on loans to meet the 25 percent equity requirement (equity must be actual cash or investment, not debt). Proposing projects without strong emissions reduction data or failing to connect infrastructure improvements to rural system affordability. Submitting incomplete financial projections or unclear governance structures for multi-party cooperatives.
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