Agricultural groups sue USDA over restrictions on renewable energy program funding

A coalition of farmers and renewable energy organizations filed a federal lawsuit challenging the USDA's August 2025 modifications to the Rural Energy for America Program that reduced solar project eligibility. The changes restricted funding for large ground-mounted solar systems on certain cropland and excluded projects using foreign-manufactured components, affecting a program where solar previously represented 68 percent of awards. Plaintiffs argue the department unlawfully restricted previously approved or expected assistance retroactively.

The Rural Energy for America Program originated from the 2002 farm bill as a mechanism to help agricultural producers and rural enterprises invest in renewable and energy-efficient infrastructure. Solar installations dominated the program's portfolio, accounting for roughly seven of every ten awards granted between 2011 and early 2025.

The August 2025 policy shift introduced three major restrictions: eliminating funding for large ground-mounted solar arrays on specific cropland categories, prohibiting equipment sourced from countries classified as foreign adversaries, and citing concerns that solar development was driving up farmland costs and reducing availability for agricultural use.