2026 Wood Innovations Grant Funding Opportunity

The 2026 Wood Innovations Grant, administered by the U.S. Department of Agriculture’s Forest Service, is a nationally scoped discretionary funding opportunity aimed at expanding and accelerating wood energy and wood product markets across the United States. The program is grounded in the legislative authority of the Agriculture Improvement Act of 2018, the Rural Revitalization Technologies statute, and the Infrastructure Investment and Jobs Act. It is designed to address the challenge of disposing hazardous fuels and wood residues while supporting economic and environmental goals through market-driven solutions. This grant opportunity supports projects that promote the long-term management of forest lands by fostering innovation in wood utilization. Eligible activities include advancing the late-stage development of commercial construction projects that use wood as a primary material, scaling wood energy systems, and strengthening wood product manufacturing capacity. Further, projects may establish or expand state-level wood utilization or energy teams, cluster wood energy systems by geography or sector, or address commercial sector market barriers. Funding may also support showcasing the environmental and economic benefits of wood-based construction, with the aim of encouraging broader adoption. Applicants may request up to $300,000, with the possibility of funding up to $1 million for high-impact stationary wood energy systems exceeding 5 megawatts in thermal output and meeting specific thermal efficiency thresholds. All awards require a 1:1 non-federal match, either in cash or in-kind services. Matching commitments must be confirmed through letters of support and be available within the project period. The Forest Service has emphasized that equipment purchases over $10,000 with federal funds trigger a federal interest, subjecting recipients to further reporting and regulatory requirements. Eligibility for this funding includes a broad array of entities: for-profit businesses, state and local governments, Indian tribes, school districts, nonprofits, institutions of higher education, and special purpose districts. The program is not limited to any geographic region, making all U.S. states and territories eligible. Applicants must be registered in SAM.gov and submit their proposals via Grants.gov using the required forms, including SF-424, SF-424A, and the FS-1500-0050 application form with appendices. Emailed or faxed applications will not be accepted. The application period closes on April 22, 2026, at 11:59 PM ET. Awards are expected to be announced by June 2026, and projects may span up to five years, though typical projects last two to three years. Applicants are encouraged to consult with their regional Wood Innovations Coordinators to ensure alignment with program goals and increase competitiveness. Evaluation criteria include the clarity and feasibility of goals, alignment with program priorities, project impact, and qualifications of the applicant team. Quarterly or semi-annual financial and progress reports are required for funded projects. These reports must detail quantifiable impacts such as wood volume used, market expansion, jobs created or retained, and energy outcomes. Applications and reports are subject to public disclosure under the Freedom of Information Act, though confidential business information may be protected under applicable exemptions.

Consult with regional coordinator to assess competitiveness; Early-phase project development will not be competitive.