Affordable Rural Cooperative (ARC) Program

What does the program do? 

The Affordable Rural Cooperative (ARC) Program provides loans and grants to electric cooperatives for nuclear energy and transmission efficiency projects serving rural areas. The program strengthens the resiliency, reliability, and affordability of rural electric systems.

Who can apply?

• Operating rural electric cooperatives who are current or former Rural Electrification Act (RE Act) borrowers. 
• Rural electric cooperatives serving predominantly rural areas.
• Wholly or jointly owned subsidiaries of such rural electric cooperatives. 

What is an eligible area?

• If you are not a current or former RE Act borrower you must prove projects financed with ARC funds will provide electric service to “Predominantly Rural” areas —meaning at least 50 percent of the people (or meters served) are in rural areas as define in the NOFO. 
• Note: If you are a current or former RE Act borrower, your entire service area has already been deemed to the rural.   

How can funds be used?

Funds can be used to:

• Construct, improve or purchase facilities, buildings, or land used for nuclear energy production or distribution.
• Construct or improve linear facilities (transmission lines) needed to operate new generation facilities, receive new power supply or export energy.
• Purchase of all or part of a new, existing or re-energized nuclear power facility.
• Upgrade a nuclear power facility to extend the facility’s useful life or expand its power output.
• Buy nuclear energy under a power purchase agreement. This may include nuclear energy from an energy storage system — but only if the energy storage system was charged using 100% nuclear energy.

Funds can also be used to reimburse:

• Some pre-award expenses.
• Interest expenses incurred during construction.
• The cost of purchasing nuclear energy under a power-purchase agreement.

What kind of funding is available?

Loans, grants and loan-grant combinations are available. 

• The amount of individual awards is limited by available budget resources. 
• The maximum grant is 25 percent of the total award costs and cannot exceed $20 million.
• Rural Development Rural Utilities Service (RUS) can finance up to 75 percent of the total cost of the project. 
  • The awardee must maintain at least 25 percent of the project’s total cost in cash or an equity investment. RUS may allow awardees to use the grant component of the award to meet the required equity. 
• RUS may choose to provide funding for 100 percent of a project if it serves a Substantially Underserved Trust Area (SUTA). Additional information about the SUTA is available at www.rd.usda.gov/about-rd/initiatives/substantially-nderserved-trust-area-suta.

How do I get started?

1. Review the ARC NOFO.
2. Join an ARC webinars. 
3. Visit the ARC helpful resources at https://www.rd.usda.gov/programs-services/electric-programs/affordable-rural-cooperative-arc-program.
4. Contact the General Field Representatives (https://www.rd.usda.gov/contact-us/electric-gfr/all) in your state before applying.
5. Submit a Letter of Interest between October 19, 2026, at 11:59 a.m., and November 20, 2026, at 11:59 a.m. on grants.gov 
6. If invited to proceed, submit an application within 90 calendar days of receiving the invitation. 

What governs this program?

• The ARC Program is authorized under the Inflation Reduction Act of 2022 (Public Law No. 117-169, “IRA”), Subtitle C, Section 22004, and is administered by the Rural Utilities Service. 
• Rural Electrification Act 

Contact

Contact Information

General Field Representatives in your state. 

Email questions to SM.RD.RUS.ARC-Questions@usda.gov