The US Department of Agriculture (USDA) has launched the new Affordable Rural Cooperative (ARC) programme providing $175m in the form of loans and grants. The aim is to support rural electrical cooperatives in modernising their transmission systems and expanding their nuclear energy supply.
The financing is provided under the Inflation Reduction Act (IRA) of 2022. The programme is administered by the Rural Utilities Service (RUS), a sub-agency of the USDA. Support is provided for the purchase or construction of facilities for advanced, efficient transmission infrastructures as well as extensions and modernisations in the field of nuclear energy supply. All projects must contribute to a future net reduction in emissions.
Eligible applicants are rural electrical cooperatives that are current or former borrowers of the Rural Electrification Act (RE Act), cooperatives in predominantly rural areas, and their full or joint subsidiaries. Electrical cooperatives must first submit a Letter of Interest (LOI) between 19 October and 20 November to be considered for the application process
“The directive from President Trump is clear: we must invest in stronger, broader, more reliable power to keep America at the forefront of growth and progress,” said USDA under Secretary for Rural Development Glen Smith. “With this new programme, USDA is helping our nation’s electric cooperatives expand American power generation with more efficient technologies.”
