Community Wood Energy and Wood Innovation Program Grants, $10K-$1.5M, Forest Service
Summary
The USDA Forest Service announces the Community Wood Energy and Wood Innovation Program (Community Wood) funding opportunity for FY2026. The program supports thermally led community wood energy systems and innovative wood product facilities with up to $6 million in total awards. Individual awards range from $10,000 to $1 million (covering up to 35% of capital costs), with up to $1.5 million available for projects in high-unemployment areas (up to 50% of capital costs). Applicants must provide leveraged funds from non-federal sources to cover remaining project costs.
What changed
The USDA Forest Service published the FY2026 Community Wood Energy and Wood Innovation Program funding opportunity under Assistance Listings 10.708. The program provides grants for installing thermally led community wood energy systems that replace fossil fuels, as well as expanding innovative wood product facilities including mass timber production and biofuel production from forest residues. Awards range from $10,000 to $1 million (up to 35% of total capital costs), with potential awards up to $1.5 million for projects in high-unemployment areas.
Eligible applicants include state, local, and tribal governments, institutions of higher education, nonprofits, and for-profit entities. While matching funds are not required, leveraging is mandatory—applicants must contribute remaining funds from non-federal sources. Third-party contributions require commitment letters. Communities, businesses, and organizations seeking to develop renewable wood energy infrastructure or expand wood product manufacturing capacity should review program requirements and prepare applications before the deadline.
What to do next
- Review eligibility requirements and prepare proposal
- Commit leveraged funds from non-federal sources
- Submit commitment letters from third-party contributors
Archived snapshot
Apr 16, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
2026 Community Wood Energy and Wood Innovation Program
Agency: Forest Service
Assistance Listings: 10.708 -- Community Wood Energy and Wood Innovation Program
Last Updated: February 18, 2026 View version history on Grants.gov
Description
The USDA Forest Service is delivering the Community Wood Energy and Wood Innovation Program (Community Wood) to support the Rural Revitalization Technologies 7 U.S.C. Sec. 8113 and Agriculture Improvement Act of 2018 Pub. L. 115-334 Sec. 9013, and Infrastructure Investment and Jobs Act (Bipartisan Infrastructure Law) Pub. L. 117-58 Div. J Title VI which directly support the installation of thermally led community wood energy systems or development and expansion of innovative wood product facilities. The intent of the Community Wood is to support forest health and stimulate local economies by expanding renewable wood energy use and innovative wood products manufacturing capacity.
... The Forest Service solicits proposals for projects that will achieve the following:
- Expand thermally led community wood energy or innovative wood product opportunities;
- Improve Forest health; and
- Stimulate local economies. This funding opportunity is intended for shovel ready projects that will not require additional funding or time to complete after the award period.
Examples of eligible projects include, but are not limited to:
- Install a thermally led community wood energy system for heating, cooling, and/or electricity that replaces fossil fuels such as coal, oil, propane, or natural gas.
- Purchase and install manufacturing equipment at a mass timber production facility.
- Expand a sawmill to add higher value production lines that incorporate innovative technologies and cost cutting measures.
- Purchase and install equipment at a new facility to produce biofuels from forest residues. All awards are based on funding availability. The Forest Service plans to award up to $6 million in total awards under this announcement. The maximum for each award is $1 million to pay for up to 35% of total capital costs. The Forest Service may consider awarding up to $1.5 million (for up to 50% of total capital costs) for a proposal that warrants special consideration, especially for projects located in areas of high unemployment.
Matching funds are not required; however, leveraging is required. Applicants must contribute the remaining funds (leveraged funds) necessary to complete the project above and beyond the requested Forest Service funding. For example, if an applicant requests Forest Service funding for 35% of the total capital costs of the project, then the applicant must commit to providing 65% of the total capital costs of the project. In this example, the 65% of the total capital costs are considered the required leveraged funds. Even though leveraged funds have a lower reporting burden and fewer legal requirements than matching funds, applicants must adhere to requirements for leveraged funds.
Leveraged funds must be from non-federal sources and be committed within the grant timeframe. Moreover, if third-party organizations contribute to the leveraged funds requirement, then applicants must submit with their proposal package commitment letters from the third-party organizations confirming the amount of leveraging being committed.
A pre-recorded webcast that presents information on applying for this funding opportunity can be found at FY26 Community Wood Pre-Application Webcast (Available by 2/20)
Additional details on the funding opportunity can be found at Wood Innovations Homepage
Instructions on how to apply for funding and the official application can be downloaded at the following weblinks:
Instructions FY26 Community Wood Program
Community Wood Grant Application (FS-1500-0051)
Community Wood Grant Factsheet
Show full description
Eligibility
Eligible applicants
Miscellaneous
- Other
Additional information
Eligible applicants are non-profits; local, state, and tribal governments; businesses, companies, corporations (for profit); institutions of higher education; and special purpose districts (public utility districts, fire districts, conservation districts, school districts, and ports.)
Grantor contact information
Description
Alex Kazer
Wood Innovations Specialist
Wood Innovations Program Email
sm.fs.wood.innovations@usda.gov
Documents
Download all
| File name | Description | Last updated |
| --- | --- | --- |
| FS-1500-0051CommunityWoodApplicationFinal.pdf | FS-1500-0051 CW Application Form | Feb 17, 2026 07:06 PM UTC |
| FY26FSNOFOCommunityWood.docx | NOFO Instructions - FY26 Community Wood | Feb 23, 2026 06:26 PM UTC |
Link to additional information
Closing: April 22, 2026
Application process
This site is a work in progress. Go to www.grants.gov to apply, track application status, and subscribe to updates. View on Grants.gov
Award
$--
Program Funding
--
Expected awards
$10,000
Award Minimum
$1,000,000
Award Maximum
Funding opportunity number:
USDA-FS-COMMUNITY-WOOD-2026
Cost sharing or matching requirement:
No Funding instrument type:
Grant
Opportunity Category:
Discretionary
Opportunity Category Explanation:
-- Category of Funding Activity:
Natural resources
Category Explanation:
--
History
Version:
9
Posted date:
February 18, 2026
Archive date:
January 17, 2028
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