Federal resources benefit all Nebraskans, funding essential services like education, health care, infrastructure, and disaster recovery. However, recent actions by the current administration have put rural programs at risk, including those supporting agriculture and energy.
Disruptions to federal funding, including those initiated by President Trump’s Executive Order, Unleashing American Energy, pose a risk to rural communities. For example, in July 2024, the Nebraska Department of Environment and Energy (NDEE) was awarded $307 million from the Environmental Protection Agency to invest in agriculture and energy projects. This investment is currently under review, leaving recipients uncertain about its long-term status.
While NDEE’s award is under review, programs like Opportunity for Nebraska: Reducing Emissions and Decarbonization (ONE RED) have been paused. ONE RED would strengthen our state’s economy, reduce energy costs, encourage sustainable agriculture practices, and increase energy efficiency. One of its initiatives, the Irrigation Engine Rebate, received an overwhelming response from producers interested in replacing diesel irrigation motors with electric motors.
The Inflation Reduction Act (IRA) added more than $820 million to the Rural Energy for America Program (REAP), which helps small businesses and agricultural producers install renewable energy systems and improve energy efficiency. Grant recipients who received funding through the additional IRA resources have moved forward with projects like solar arrays and grain drying systems, expecting matching grant funds once projects are completed, as outlined in their contracts. Now, because the funding is tied to the IRA, the expanded funding is on pause, and awardees are left to figure out how to pay for remaining costs.
Federal funding plays an essential role in the lives of many rural Nebraskans. The government must honor their commitments to our state’s residents by ensuring program funding achieves its intended purposes. Community members should contact their congressional representatives and ask for these legally binding contracts and obligations to be upheld.
Val Ankeny
Policy Associate Center for Rural Affairs