Broken Contracts Leave Rural Illinoisans in Limbo
FOR IMMEDIATE RELEASE
Monday, March 17, 2025
Contacts: Amanda Pankau, Prairie Rivers Network, apankau@prairierivers.org, 217-840-3057
Rural Illinois – Illinois farmers and rural small businesses were counting on federal funding from the Rural Energy for America Program (REAP) to help finance cost-saving energy projects, like solar panels and energy efficiency upgrades. However, the Trump Administration cut federal funding, imperiling most of Illinois’ expected $119.1 million in FY2024 REAP funding and a portion of the $46.3 million in FY2023 REAP funding from the U.S. Department of Agriculture (USDA). Illinois’ expected REAP awards in FY2024 totaled more than any other state.
Recently, REAP grant and loan recipients in Illinois and across the nation learned that the federal government is not disbursing the REAP funds they were promised despite Congress having already allocated funds for this program. Many rural businesses and farms have already signed legally binding contracts and either begun or completed construction projects based on these awards that the government is now not honoring, leaving them on the hook for significant costs incurred.
Prairie Rivers Network, an Illinois environmental non-profit, was doing outreach to help rural communities learn about REAP and other energy transition opportunities that have now been stripped away by these extreme federal cuts. “Promises of funding made to hardworking farmers and rural small business owners have been broken, leaving them in a devastating position,” said Amanda Pankau, Director of Energy and Community Resiliency with Prairie Rivers Network. “These businesses plan for every penny spent and dollar earned, and pulling the rug out from under them not only hurts these businesses, but also the communities they serve.”
Analytical Brewing, a small business in McLean County, Illinois, learned in November 2024 that it received a REAP grant to assist with the upfront costs of building a 27.5 kW solar project that will power its brewery and tap room on Lexington’s Main Street, just off historic Route 66. This project will bring long-term cost and energy savings to the company’s bottom line. However, the federal government had not paid the reimbursement owed before abruptly cutting REAP program funding.
“Like in many small, rural towns, our building is old and electricity prices are high. Our solar project, supported by a REAP grant, is expected to save us $5,000 in electricity costs annually. As a new business, anything that we can do to reduce operational expenses is going to make us, and the community we serve, more sustainable in the long term,” said Brian Graves, Co-owner of Analytical Brewing.
Fox at the Fork Farm, a small-scale regenerative farm located in unincorporated Monee in Will County, has not received their REAP grant funds that were awarded to them in FY2024. They’ve built their farm business with long-term sustainability in mind, both for the land and their community. Investing in solar was a natural next step to reduce their energy costs and make their farm more financially sustainable as well. “We have already built and paid for the project trusting that our REAP grant we were awarded would help make it possible, but now the funding we were promised is stalled. As a small, first-generation farm, every dollar matters, and these funding cuts are putting a real strain on our operation this year,” said Josh Snedden, Owner and Farmer of Fox at the Fork Farm.
The Rural Energy for America Program (REAP) was established under the 2008 Farm Bill as part of the USDA’s efforts to support rural communities through the cost-saving benefit of energy efficiency and renewable energy projects. Over the years, REAP has been consistently funded through the Farm Bill, with periodic adjustments in funding amounts. A significant boost came in 2022 with the Inflation Reduction Act (IRA), which allocated an additional $2 billion to REAP over a 10-year period, significantly increasing funding opportunities and grant percentages. This expansion in funding allowed Illinois to increase REAP awards from $1,900,000 in FY 2022 with Farm Bill funding alone to $119,141,924 in FY 2024 with increased IRA funding. USDA continues to make awards and accept applications for a small number of Farm Bill funded REAP projects. The IRA-funded projects are those that are impacted by the abrupt funding cuts.
The IL House Congressional Districts with farms and businesses owed the most from FY 2024 frozen REAP funding include Rep Mary Miller ($36.7M), Rep Mike Bost ($36.4M), and Rep Darin LaHood ($35M).
StraightUp Solar, a Midwest-based solar company with offices in Bloomington-Normal, has worked with many small businesses and farmers to access solar through the REAP Grant. “StraightUp Solar is inspired by small businesses who are making the smart choice to invest in solar energy technology. REAP grants are vital for driving the adoption of solar energy in rural America,” added Shannon Fulton, VP of Preconstruction with Straight Up Solar. “These incentives not only benefit individual businesses but also contribute to a more resilient and sustainable energy future for our communities.”
In the near-term, Illinois farmers and small business owners are anxious to learn if and when they will receive the funding they are owed. In the long term, the future of REAP funding from both the IRA and Farm Bill is uncertain. The benefits of the REAP program to rural businesses, farms and communities have historically brought bipartisan support, but the current administration’s budget and staffing cuts, and hostility to clean energy, may threaten the future of this program and its benefits to rural Illinois.
At Prairie Rivers Network (PRN), we protect water, heal land, and inspire change. Using the creative power of science, law, and collective action, we protect and restore our rivers, return healthy soils and diverse wildlife to our lands, and transform how we care for the earth and for each other. PRN is the Illinois affiliate of the National Wildlife Federation.
