Controversy has erupted as environmental groups take legal action against the U.S. Department of Agriculture (USDA) on behalf of farmers and solar agencies. The lawsuit challenges recent adjustments to a renewable energy initiative, claiming these changes adversely affect solar projects.
The legal complaint highlights alterations made during the Trump administration to the Rural Energy for America Program (REAP), which allegedly render “almost all solar projects ineligible” for funding. These adjustments were reportedly applied retroactively, impacting projects previously approved for funding.
Aaron Lehman, President of the Iowa Farmers Union, remarked in a recent webinar that Iowa has been proactive in utilizing the REAP program, emphasizing its significance since its inception in the 2008 farm bill. “Unfortunately, we’ve seen some very unfortunate twists and turns with the program that our members have been impacted by,” Lehman noted. “This breaking of this commitment is really damaging.”
According to the lawsuit filed by Earthjustice and the Environmental Law & Policy Center, solar undertakings have constituted over two-thirds of the projects receiving REAP funding between 2011 and early 2025. Notably, Iowa’s rural areas have leveraged these funds for solar installations on small businesses and farming operations, in addition to enhancing energy efficiency in ethanol facilities and grain dryers.
In August 2025, the Trump administration proposed limiting federal subsidies for solar projects to safeguard farmland. This policy shift specified that REAP funds could not support solar projects exceeding a certain scale or those using panels manufactured by “foreign adversaries,” including China.
Chad Hughes from the Environmental Law & Policy Center explained to Iowa Farmers Union members that these changes effectively paused the program. A subsequent USDA announcement in March 2026 introduced new regulations, allowing applications to be resubmitted once these were implemented.
“People expected to get paid, and they followed the rules and they built these systems, and then suddenly they’re being told by USDA, ‘Oh, sorry, just kidding, you’re gonna be denied because you know you didn’t follow rules that did not exist when you applied,’” Hughes stated.
The lawsuit centers on the original intent of REAP, established by Congress to bolster renewable energy in rural regions. The 2008 farm bill explicitly aimed to “promote energy efficiency and renewable energy development for agricultural producers and rural small businesses.”
Hughes argued that despite the current USDA leadership’s apparent opposition to renewable energy, it is not within their jurisdiction to contradict Congressional directives. “USDA does not have the ability to advance policies based on a political disagreement with Congress,” he said.
The USDA has emphasized the need to protect farmland and reduce taxpayer spending on what it terms “unreliable energy sources” as part of the Trump administration’s energy priorities.
‘Mid-flight’ rule changes
The environmental groups represent a diverse array of entities, including the Iowa Farmers Union, Iowa Solar Energy Trade Association, and RENEW Wisconsin, among others. The lawsuit also addresses the retroactive application of rules, which affected members of the Book family in Illinois who had been slated to receive over $300,000 in REAP funding.
“We just have these awful situations where farmers have lived up to their end of the bargain, have committed to this public-private partnership too, and are left holding the bag,” Lehman expressed.
Hughes contended that rule alterations cannot occur “mid-flight” without statutory authority or a compelling rationale. “USDA has neither,” he asserted.
For over two decades, the USDA has supported solar initiatives through REAP, yet Hughes criticized the agency for not providing “sensible reasons” for its recent policy shift.
As of now, the USDA has not issued a response to the legal action. Nonetheless, the final rules for REAP were published in the Federal Register, indicating that projects must be fully constructed and operational before funding applications can be submitted.
The new rules, according to the summary, aim to streamline the process, reduce risks, simplify administration, and prioritize projects with verifiable outcomes.
USDA data reveals that since 2016, Iowa has seen over 1,200 REAP project investments, totaling more than $114 million. For the fiscal years 2025 and 2026, investments in Iowa surpassed $26 million, supporting over 200 projects.
Original Story at www.mississippivalleypublishing.com