In a landmark announcement during a visit to Wisconsin, President Joe Biden and U.S. Department of Agriculture (USDA) Secretary Tom Vilsack unveiled over $7.3 billion in financing for rural electric cooperatives to accelerate clean energy development in rural communities across the U.S. This investment is part of the Empowering Rural America (New ERA) program and represents the largest investment in rural electrification since the New Deal era under President Franklin D. Roosevelt.
The funds, part of Biden’s “Investing in America” agenda, are aimed at transforming rural communities by building more than 10 gigawatts of clean energy infrastructure. The announcement underscores the administration’s commitment to clean energy while also supporting rural jobs, reducing pollution, and lowering energy costs for American families.
“Under the Biden-Harris Administration, we are supporting a more prosperous future for rural communities by speeding up the transition to clean energy while at the same time keeping monthly bills low and investing in the American workforce with new jobs and apprenticeships,” said Secretary Vilsack. “One in five rural Americans will benefit from these clean energy investments, thanks to partnerships with rural electric cooperatives like Dairyland. Put simply, this is rural power, for rural America.”
The announced investments will benefit rural communities in 23 states, providing cleaner and more resilient electricity to approximately five million households, farms, businesses, and schools. The states include Alaska, Arizona, California, Florida, Ohio, South Dakota, and Wisconsin, among others. The projects are expected to support over 4,500 permanent jobs and 16,000 construction jobs, reflecting the administration’s broader economic goals of job creation and infrastructure development.
“The Inflation Reduction Act makes the largest investment in rural electrification since FDR and the New Deal in the 1930s,” said John Podesta, Senior Advisor to the President for International Climate Policy. “Today’s awards will bring clean, affordable, reliable power to rural Americans all across our nation.”
The 16 selectees will collectively reduce and avoid more than 43.7 million tons of greenhouse gases annually, which is equivalent to taking more than 10 million gasoline-powered cars off the road. The projects will also contribute to President Biden’s broader climate goals, with clean energy components including wind, solar, nuclear, and hydropower investments. This massive push toward renewable energy is expected to reduce pollution by 2.9 billion tons over the lifetime of the projects.
The first finalized award under the New ERA program, nearly $573 million, was granted to Dairyland Power Cooperative. Dairyland is expected to leverage this funding into a total investment of $2.1 billion, developing over 1,000 megawatts of new clean energy infrastructure through various solar and wind installations.
Dairyland’s electric rates are estimated to be 42% lower over the next 10 years due to the New ERA funding, a significant cost-saving measure for rural Americans. The project will also include a Community Benefit Plan developed in collaboration with the University of Wisconsin-Madison Clean Energy Community Initiative. This plan will ensure benefits reach both local farmers and labor organizations, including partnerships with the International Brotherhood of Electrical Workers (IBEW), Wisconsin Building Trades Council, and others.
The Biden-Harris Administration’s commitment to clean energy and rural electrification is embodied in this significant investment, which builds on the president’s larger efforts through the Inflation Reduction Act. USDA Rural Development will play a pivotal role, providing loans and grants that expand economic opportunities, create jobs, and improve infrastructure across rural America.
These initiatives are also central to the administration’s Justice40 Initiative, which seeks to ensure that 40% of the benefits from federal climate, clean energy, and other investments reach disadvantaged communities that have been marginalized and overburdened by pollution.
The broader vision of USDA under the Biden-Harris administration is to transform America’s food system, promote climate-smart practices, and invest in infrastructure that benefits all Americans. “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,” the USDA said.
This historic $7.3 billion clean energy investment will deliver meaningful benefits to rural communities across the U.S. by lowering energy costs, creating jobs, and significantly reducing pollution. As Secretary Vilsack put it, “Put simply, this is rural power, for rural America.”
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