USDA Rural Development’s Rural Utilities Service has announced the Affordable Rural Cooperative (ARC) Energy Program, Funding Opportunity Number RUS-ARC-2026. The opportunity is currently opening soon. Letters of Interest may be submitted beginning October 19, 2026 at 11:59 a.m. Eastern Time and are due November 20, 2026 at 11:59 a.m. Eastern Time.
Rural community relevance
ARC is an electric-system financing program rather than a direct healthcare, school, telehealth, or EMS grant. It may indirectly support rural critical facilities by improving the resiliency, reliability, and affordability of the electric systems that serve rural communities.
Funding and cost share
USDA states that approximately $175 million in program funding is available. Loans, grants, and loan-grant combinations may be offered. The maximum grant component is 25 percent of total eligible award costs and may not exceed $20 million. For Project and System loans, RUS generally finances up to 75 percent of total capitalized project cost, with the awardee maintaining at least 25 percent in cash or equity. USDA may allow the grant component and qualifying tax credits toward that equity requirement when financially feasible. A qualifying Substantially Underserved Trust Area may receive different treatment under the notice.
Who may apply
Eligible entities are operating rural electric cooperatives that are current or former Rural Electrification Act borrowers, electric cooperatives serving predominantly rural areas, and wholly or jointly owned subsidiaries of such cooperatives. For applicants that are not current or former RE Act borrowers, the financed project must serve a predominantly rural service area as defined in the NOFO.
Eligible activities
ARC supports eligible nuclear power supply and advanced transmission-efficiency investments. Eligible uses include construction, improvement, or acquisition of qualifying facilities and transmission infrastructure, purchases or ownership interests in qualifying nuclear facilities, qualifying nuclear power purchase arrangements, and certain related pre-award and construction-period costs. Research and development and feasibility studies that do not result in eligible power supply or transmission-efficiency improvements are not eligible activities.
Submission process
Phase 1 is a Letter of Interest submitted electronically through Grants.gov. The LOI must include the entity profile and point of contact, UEI and taxpayer identification information, borrower status, project location and service-area information including a digital shapefile, requested assistance type and amount, financial information, and a technical description of the proposed portfolio. The technical description is limited to 1,500 words and must include the New Clean Power Tool calculations or comparable information acceptable to USDA. Selected entities will receive an Invitation to Proceed and then have 90 calendar days to submit the full ARC application.
Atlas assessment
This is a rural electric cooperative infrastructure opportunity with indirect community-resilience relevance. It is not a direct healthcare or telehealth grant and is not a direct Dr. Miltie applicant path under the published eligibility rules. Applicant-specific execution should proceed only for a verified eligible cooperative after the opportunity opens.
Official sources: USDA Rural Development ARC Program and Grants.gov opportunity RUS-ARC-2026.