The USDA Forest Service requests proposals to substantially expand and accelerate wood energy and wood products markets throughout the United States to support forest management needs on National Forest System and other forest lands. The grants and agreements awarded under this announcement will support the Agriculture Improvement Act of 2018 Pub. L. 115-334 Sec. 8643, Rural Revitalization Technologies 7 U.S.C. Sec. 6601, and Infrastructure Investment and Jobs Act Pub. L. 117-58 Div. J Title VI to meet the nationwide challenge of disposing of hazardous fuels and other wood residues from the National Forest System and other U.S. forest lands in a manner that supports wood products and wood energy markets. This Request for Proposals focuses on the following priorities to: 1.) Reduce wildfire risk and improve forest health on National Forest System and other forestlands; 2.) Reduce costs of forest management on all land types; 3.) Promote economic and environmental health of communities.

The intent of the Wood Innovations Funding Opportunity is to stimulate, expand, and support wood products markets and wood energy markets. Projects can include, but are not limited to: 

• Completing requirements, such as engineering designs, cost analyses, and permitting necessary, in the later stages of commercial construction projects that use wood as a primary building material and in the later stages of wood energy project development to secure financing. Early phase project development proposals will not be competitive.
• Developing manufacturing capacity, other necessary wood products infrastructure, and markets for wood products that support forest ecosystem restoration.
• Showcasing quantifiable environmental and economic benefits of using wood as a sustainable building material in an actual commercial building and the projected benefits achieved if replicated across the United States based on commercial construction market trends.
• Establishing statewide wood utilization teams and statewide wood energy teams. Only proposals from States without an existing (or former) team will be considered. 
• Developing a cluster of wood energy projects in a geographic area or specific sector (e.g., prisons, hospitals, universities, manufacturing sector, or industrial sector).
• Overcoming market barriers and stimulating expansion of wood energy in the commercial sector.

Additional details on the funding opportunity can be found at Wood Innovations Home page

Instructions on how to apply for funding and the required Application Form can be downloaded at the following weblinks.

Wood Innovations Funding Opportunity Application (FS-1500-0050)

Instructions FY26 Wood Innovations Funding Opportunity

Wood Innovations Application Webinar

Wood Innovations Grant Factsheet

Applications must be submitted in Grants.gov by 11:59 ET on April 22, 2026.