Biden-Harris Administration Launches New Program to Support Wood Processing Facilities and Help Reduce Wildfire Threats

BOZEMAN, Mont., December 23, 2024 – U.S. Department of Agriculture (USDA) Secretary Tom Vilsack today unveiled a new program to support American wood processing facilities. USDA Rural Development is partnering with USDA Forest Service to provide funding through the new Timber Production Expansion Guaranteed Loan Program (TPEP). The program will support the processing and utilization of wood products from National Forest System lands to improve forest health and reduce the risk posed by wildfires, insects, and disease and the detrimental impacts they have on communities and critical infrastructure.

This program is funded through President Biden’s historic Bipartisan Infrastructure Law. It also reflects the goals of the President’s Investing in America agenda to rebuild the economy from the bottom up and middle out, and to strengthen the nation’s infrastructure.

“Rural America is the backbone of our country, providing the everyday essentials we all depend on,” Secretary Vilsack said. “Under the leadership of the Biden-Harris Administration, USDA Rural Development is partnering with the Forest Service to support timber industry innovations that improve forest health and reduce wildfire threats while creating good-paying jobs for people in rural, forest-dependent communities.”

Kathleen Williams, Montana State Director for USDA Rural Development added, “Timber processing infrastructure is a critical component in our ability to manage our forests in an era of climate change, insect infestations, and uncharacteristic fire hazard. We hope this program will aid in retaining and building this critical sector in Montana.”

Through TPEP, USDA Rural Development and the Forest Service will make $220 million available in loan guarantees for borrowers to establish, reopen, retrofit, expand, or improve wood processing facilities, sawmills and paper mills, that use trees harvested from federal or Tribal lands. The program is designed to manage up to 20 million acres of national forests managed by USDA Forest Service and complement the Forest Service’s 10-year Wildfire Crisis Strategy.

USDA Rural Development will begin accepting TPEP applications on December 26, 2024, with a maximum loan amount of $25 million. USDA encourages applicants to use the TPEP Dashboard to find areas the Forest Service has identified as high or very high priority areas to address the risk of wildfires and insect infestations or disease, which have caused or have the potential to cause significant damage.

Applicants may learn more through the upcoming TPEP webinar, scheduled for January 6, 2025 at 1:00 p.m. ET.

USDA encourages applicants to consider projects that will advance the following key priorities:

Reducing climate pollution and increasing resilience to the impacts of climate change through economic support to rural communities;

Ensuring all rural residents have equitable access to USDA Rural Development programs and benefits from Rural Development-funded projects; and

Assisting rural communities recover economically through more and better market opportunities and through improved infrastructure.

Applications must be submitted electronically using Grants.gov and will be accepted until funds are expended.

Additional information will be available in the Dec. 26, 2024, Federal Register. To learn more about investment resources for rural areas, visit http://www.rd.usda.gov or contact the nearest USDA Rural Development state office.

USDA Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, Tribal and high-poverty areas. Visit the Rural Data Gateway to learn how and where these investments are impacting rural America. For more information, visit http://www.rd.usda.gov.

The USDA Forest Service has for more than 100 years brought people and communities together to answer the call of conservation. Grounded in world-class science and technology– and rooted in communities–the Forest Service connects people to nature and to each other. The Forest Service cares for shared natural resources in ways that promote lasting economic, ecological, and social vitality. The agency manages 193 million acres of public land, provides assistance to state and private landowners, and maintains the largest wildland fire and forestry research organizations in the world. The Forest Service also has either a direct or indirect role in stewardship of about 900 million forested acres within the U.S., of which over 130 million acres are urban forests where most Americans live.

USDA touches the lives of all Americans each day in so many positive ways. Under the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit http://www.usda.gov.