New $175M USDA Program Targets Co-op Nuclear and Transmission Projects
The USDA's Rural Utilities Service (RUS) has opened a $175 million loan and grant program for electric cooperatives only, NRECA reports. The Affordable Rural Cooperative (ARC) program repurposes leftover funds from RUS's New ERA program and splits them evenly between nuclear and transmission projects.
NRECA's Luke Theriot called ARC "a great opportunity for electric cooperatives to add nuclear to their energy portfolio," most likely through power purchase agreements, or to catch up on needed transmission upgrades.
What ARC funds
Nuclear dollars can go toward buying, building, or upgrading generation and distribution facilities, nuclear power purchase agreements, nuclear-charged storage, and related transmission and substation work. Transmission dollars cover new or upgraded lines, substations, storage, and efficiency improvements. Grants can cover up to 25% of a project, capped at $20 million, and loans up to 75%.
What it means for our manufacturers and customers
Half of ARC, about $87.5 million, is aimed at transmission and substation work, the same markets Utility Service Agency serves. Even the nuclear half pays for interconnection, substation, and transmission upgrades. For coops in our territory, that could move shelved projects forward and bring new demand for the tools and materials our manufacturers supply.
For co-op customers, letters of interest are due between Oct. 19 and Nov. 20, so project scoping and material cost estimates will likely factor into early planning.
For manufacturers, RUS-financed projects generally draw on RUS's accepted materials list, and demand may build as awards are made.
How to apply
Awards are competitive. Co-ops submit letters of interest Oct. 19 through Nov. 20, and RUS invites top-scoring co-ops to file full applications. RUS webinars run at 2 p.m. ET on Sept. 30 and Oct. 7.
Full program details are on the USDA Rural Development ARC program page.
Sources
This post is adapted from reporting by the National Rural Electric Cooperative Association (NRECA). Quotes and program details are attributed to the sources below.
• NRECA / Cooperative.com, "RUS Opens $175 Million Program to Fund Co-op Nuclear, Transmission Projects", Sept. 21, 2026. Photo on the original article courtesy of Arkansas Electric Cooperative Corp.
• USDA Rural Development, news release announcing the ARC program, Sept. 15, 2026
• USDA Rural Development, Affordable Rural Cooperative Program page
• NRECA / Electric.coop, background on the New ERA program