Affordable Rural Cooperative (ARC) Energy Program

The Rural Utilities Service (RUS) is issuing a Notice of Funding Opportunity (NOFO) for the Affordable Rural Cooperative (ARC) Program, providing up to $175 million in loan and grant funding (or loan‑grant combinations) to eligible electric cooperatives and their subsidiaries. Funding is intended to support the deployment of advanced, efficient transmission infrastructure and nuclear power generation to reduce emissions under the Inflation Reduction Act. Eligible entities must be operating electric cooperatives (501(c)(12) or 1381(a)(2)) that are current or former RUS loan borrowers and serve predominantly rural areas. Applicants must submit a Letter of Interest (LOI) via Grants.gov between October 19 and November 20 2026. RUS will finance up to 75 % of project capital costs as loans; the awardee must provide at least 25 % equity (cash or equity investment), which may be satisfied in part by grant components or eligible tax credits. Up to 20 awards may be made, with a ceiling of $20 million per award and typical loan terms of up to 35 years (grant terms up to 20 years). The program emphasizes emission‑free nuclear energy and transmission efficiency improvements, with reporting, audit, and Buy‑America requirements. • Eligible entities: U.S. electric cooperatives (or wholly/jointly owned subsidiaries) serving ≥50 % rural service area. • Funding: $175 M total; up to 20 awards; max $20 M per award. • Funding types: Loans, loan‑grant combos, and pure grants. • Cost‑share: RUS funds up to 75 % (loan); awardee must cover ≥25 % equity. • Application: LOI via Grants.gov 10/19/2026 – 11/20/2026; must include New Clean Power Tool data. • Evaluation: Scoring based on emission‑reduction potential, transmission efficiency, financial feasibility, and compliance. • Award terms: Loans up to 35 years, grants up to 20 years; interest rates set by RUS.