USDA commits $80 million to expand timber markets and improve forest resilience

The U.S. Department of Agriculture will allocate $80 million through its Wood Innovation Grants program to support the expansion of wood products manufacturing, forest management, and renewable energy development in timber-producing regions. The funding was announced on July 17 by Agriculture Secretary Brooke L. Rollins and is managed by the U.S. Forest Service.

The grants are part of a broader strategy to promote forest health, reduce wildfire risks, and stimulate rural economic activity. According to USDA, the investment also supports President Donald Trump’s economic agenda by encouraging domestic resource utilization and reducing reliance on foreign imports.

“Proper forest use and management lowers our reliance on foreign products and is inherently aligned with President Trump’s America First agenda,” Secretary Rollins said in a statement. “We’re investing in innovation that ensures a steady, sustainable supply of American wood that not only supports jobs and fuels economies, it protects the people and communities we serve.”

The announcement builds on a $200 million timber sector investment made in May, and complements regulatory reforms aimed at expediting project approvals. USDA noted that overstocked and poorly managed forests heighten wildfire risks and damage ecological resilience.

The Wood Innovation Grants program, launched in 2015, targets national priority areas such as mass timber construction, renewable wood energy, and technologies that promote fuel reduction. Additional USDA programs include:

• Community Wood Grant Program, which funds thermally led wood energy systems and new manufacturing facilities;

• Wood Products Infrastructure Assistance (WPIA), supporting facilities that process byproducts from forest restoration near federal or tribal lands;

• Temporary Bridge Funding Opportunity, aimed at protecting water quality during forestry operations through partnerships with states and tribal governments.

The USDA is also expanding its technical assistance offerings. The Wood Manufacturing Assistance Team and the Wood Energy Technical Assistance Team provide direct support to companies for project implementation and facility improvement. Since 2009, the Wood Energy team has supported over 200 projects using more than 850,000 green tons of biomass annually, supporting nearly 2,700 jobs and contributing $34 million to local economies.

Efforts to integrate wood into construction are also ongoing. More than 2,300 mass timber buildings have been constructed or are in design in the U.S., backed by training for nearly 290,000 architects, engineers, and developers. Thirteen domestic facilities now manufacture cross-laminated timber for commercial and institutional use.

USDA emphasized that wood energy and products not only support rural economies but also contribute to climate goals by reducing greenhouse gas emissions and utilizing waste biomass.