Rural Utilities Service · Department of Agriculture

Affordable Rural Cooperative (ARC) Energy Program

Forecast — not open yet ? · Opportunity RUS-ARC-2026 · Assistance Listing 10.758

Deadline: Opens Oct 19, 2026 (estimate)
Award size: Up to $20M
Total available: $175M · about 20 awards
Cost share / match ?: Required · Work out your budget and match
Who can apply: Other (see eligibility)
Where: Anywhere in the U.S., including Tennessee

Before you apply: federal grants require an active SAM.gov registration (Unique Entity ID) and a Grants.gov account. Registration is free but can take weeks, so start now, not when the deadline is close. Grant-ready checklist

How this fits you

Available in Tennessee (nationwide program)
Requires a cost share / match
Past Tennessee awards on file: 2

Tell us who you are to see whether you're eligible.

About this grant

The Rural Utilities Service (RUS or the Agency), a Rural Development (RD) agency of the United States Department of Agriculture (USDA), is soliciting Letters of Interest (LOI) for applications under the Affordable Rural Cooperative (ARC) Program. In addition, the Agency is announcing the eligibility requirements, application process and deadlines, and the criteria that will be used by RUS to assess ARC Applications. The ARC Program is making approximately $175 million in appropriated budget authority for the cost of loan and grant funds available under the Inflation Reduction Act (IRA) of 2022. In keeping with the statutory authority for the program, RUS will utilize the ARC funds to assist Eligible Entities to achieve future net reductions consistent with Section 22004 of the IRA through the deployment of advanced, efficient transmission infrastructure and nuclear power supply. Available funds will be allocated for each purpose while advancing the long-term resiliency, reliability, and affordability of rural electric systems. All Eligible Entities are responsible for any expenses incurred in developing their LOIs and ARC Applications. This funding notice advances the statutory purpose of achieving the greatest reductions as provided in Section 22004 of the IRA associated with rural electric systems by increasing the amount of emission-free nuclear power and increasing the efficiency of the transmission grid within such systems. These new sources of cooperative power supply and enhanced transmission efficiency will result in reduced future demand for other sources of power. Cost Sharing or Matching: For Project and System loans, RUS will finance up to 75 percent of the total capitalized cost of the Project in the loan component of a Project and/or System Award. The Awardee will be required to initially provide and maintain for the term of the Project and/or System Award at least 25 percent of the Project’s total capitalized cost in the form of cash or an equity investment. As noted in Section 2.0 of the NOFO, the Agency may where Financially Feasible allow an Awardee to utilize the grant component of the Award and/or any applicable tax credit that it expects to receive (including credit amounts expected to be received through Elective Pay elections under section 6417 of the Internal Revenue Code) toward the 25 percent equity requirement for a Project...

Eligibility (from the notice)

(1) Operating Electric cooperatives described in section 501(c)(12) or 1381(a)(2) of the Internal Revenue Code of 1986 who are currently or have been in the past a RUS electric loan borrower pursuant to the RE Act;(2) Electric cooperatives serving predominantly Rural Areas; or(3) Wholly or jointly owned subsidiaries of such electric cooperatives listed in (1) and (2).For the purposes of this program, the term “predominantly rural” as used in (2) in this paragraph shall mean a service territory that must include at least 50 percent Rural Areas

Should we apply? (2-minute check) Ask a partner for a letter

What the official notice requires

Pulled from the funding notice ARC_NOFO.pdf (33 pages) so you can see the requirements at a glance. Each item shows the notice's own words; open the page to read it in context. The notice itself always controls.

Registrations you need first

SAM.gov · p. 2

“To do business with the Federal Government and to submit your application electronically using the Grant Application Portal, you must— o Have a Unique Entity Identifier (UEI) and a Taxpayer Identification Number (TIN); o Be registered in SAM.gov (System for…” Open page 2
Unique Entity ID (UEI) · p. 2

“To do business with the Federal Government and to submit your application electronically using the Grant Application Portal, you must— o Have a Unique Entity Identifier (UEI) and a Taxpayer Identification Number (TIN); o Be registered in SAM.gov (System for…” Open page 2
Grants.gov · p. 9

“Any system that does not produce any emissions of gases described in Section 22004 when it is operated. 1.4 Application of Awards All LOIs must be submitted to RUS electronically through Grants.gov.” Open page 9

New to these? SAM.gov registration can take weeks, so start early: grant-ready checklist.

Steps before the deadline

Loi · p. 9

“LOI submitters with high-ranking scores will receive an invitation to proceed and the agency will provide information about the method of application submission at that time Letters of Interest must include data as calculated in the New Clean Power Tool or…” Open page 9
Pre-application · p. 15

“Award funds must be used to pay only allowable, necessary, and eligible costs incurred post Award, except for approved pre-application expenses that are listed below.” Open page 15
Loi · p. 17

“The LOI must include the following:” Open page 17
Loi · p. 17

“If the Eligible Entity is a subsidiary of one or more Eligible Entities the Eligible Entity must list its owners in the LOI.” Open page 17

What to submit

Environmental documentation · p. 19

“If the Applicant has not received written notice from RUS that the Project environmental review process is concluded as provided in the Environmental and Historic Preservation Requirements, it must submit documents that establish that a review is in progress…” Open page 19
Letters of support or commitment · p. 28

“All RUS requirements and Award conditions specified in the Commitment Letter must be met before loan or grant funds will be disbursed.” Open page 28

Length limits

Portfolio of Actions: 1,500 words max · p. 18

“(ii) The description of the Portfolio of Actions shall not exceed 1,500 words, and it must include a summary of the technical aspects of the various actions that will allow RUS to measure the Section 22004 Reductions resulting from the Portfolio of Actions.” Open page 18

Dates in the notice

October 19, 2026 · p. 1

“ET on October 19, 2026 Letter of Interest Due Date: 11:59 a.m.” Open page 1
September 30, 2031 · p. 13

“Four (4) years from the date of environmental clearance, but no later than September 30, 2031.” Open page 13

Mistakes that get applications rejected

Could get your application rejected · p. 2

“Letters of Interest will not be accepted after 11:59 a.m.” Open page 2
Could get your application rejected · p. 15

“Any request for an advance of funds under the Award that includes any ineligible costs will be rejected.” Open page 15
Could get your application rejected · p. 26

“(a) Incomplete LOIs and applications or ineligible applications as of the deadline for submission will not be considered further, and the Applicant will be notified in writing.” Open page 26

Who in Tennessee has won this program

2 awards to Tennessee recipients in 2 counties since 2025. Largest shown:

Past Tennessee recipients
Recipient	Where	Amount	FY
Chickasaw Electric Cooperative	Somerville, Fayette County	$35.7M	2025
Seven States Power Corporation	Chattanooga, Hamilton County	$24.7M	2025

Source: USAspending.gov. Past awards show who this program funds; they don't guarantee future awards.

About the program (10.758)

Affordable Rural Cooperative — 22004

How applications are judged

RUS will review and evaluate the LOIs to determine if they are eligible, feasible, competitive and within the funding limits and policy objectives of the ARC Program. Each of the metrics in the criteria will be scored using the New Clean Power Tool or other methods acceptable to RUS. Pursuant to Section 22004, points will be awarded as described in the NOFO. Other factors to be considered include: reliability and resiliency; affordability; geographic diversity; resources of the ARC Program; SUTA provisions; funds available from other federal programs; and feasibility. Applicants who have been invited to proceed with an application will be placed into one of two categories: 1) For Eligible Energy Awards, project ranking will be based on the estimated increase in MWh eligible nuclear power supply and the cost per MWh as well as the corresponding reduction as measured by the New Clean Power Tool. Both the estimated total cost of the project(s) and the anticipated cost to government will be evaluated and factored into the ranking. For power purchase arrangements or equivalent, the estimated cost of the project(s) will be based on the anticipated cost schedule for the term of the arrangement. For the construction of generation facilities and improvements to existing facilities, the estimated cost will be based on the estimated total capitalized cost. Cost estimates shall be inclusive of all expenses associated with the project(s) and modeled using assumptions and methods...

Matching requirements

This program has no statutory formula. For Project and System loans, RUS will finance up to 75 percent of the total capitalized cost of the Project in the loan component of a Project and/or System Award. The Awardee will be required to initially provide and maintain for the term of the Project and/or System Award at least 25 percent of the Project�s total capitalized cost in the form of cash or an equity investment. As noted in Section 2.0 in the NOFO, the Agency may where Financially Feasible allow an Awardee to utilize the grant component of the Award and/or any applicable tax credit that it expects to receive (including credit amounts expected to be received through Elective Pay elections under section 6417 of the Internal Revenue Code) toward the 25 percent equity requirement for a Project Award. Such financial equity may not come from the proceeds of any loan from any...

Examples of funded projects

Fiscal Year2025: An electric cooperative in rural America was awarded a grant for the construction of new generation facilities, improvements to transmission systems, and the purchase of power through a Power Purchase Agreement.

Program listing on SAM.gov

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Key facts