U.S. Forest Service announces funding to boost forest products economy

Published on February 23, 2026 Time: loading...

The U.S. Department of Agriculture’s Forest Service has unveiled up to $95 million in competitive grant funding through its Wood Innovations program, aimed at supporting projects that promote innovative wood uses, expand wood-based construction, and enhance U.S. wood energy markets and forest product processing capabilities.

Funding is available through three Forest Service grant programs: the Wood Innovations Grant, Community Wood Grant, and Wood Products Infrastructure Assistance Grant programs. Together, these programs support projects that:

  • Develop innovative wood products.
  • Increase the use of wood in commercial and residential construction.
  • Expand wood energy systems.
  • Modernize, retrofit, or increase the capacity of wood products manufacturing facilities.

“A strong timber industry is essential for active forest management and the vitality of rural economies,” said Forest Service Chief Tom Schultz. “By supporting mills and markets that transform forest byproducts into valuable goods, we strengthen domestic manufacturing, reduce wildfire risks, and generate well-paying jobs across rural America.” Tom Schultz added further.

Eligible applicants for the program include private businesses, for-profit and non-profit organizations, tribes, state and local governments, institutions of higher education, as well as public utilities, fire departments, conservation groups, and school districts.

The investments support President Trump’s Executive Order on Immediate Expansion of American Timber Production and U.S. Secretary of Agriculture Brooke L. Rollins’ direction to have the Forest Service to ramp up active forest management to improve forest health, reduce wildfire risk, and support rural prosperity. Byproducts of these activities – such as small diameter timber and woody biomass – have historically had little market value. Forest Service grant programs help create new opportunities to use this material in a wide range of wood products.

Businesses engaged in or supporting the forest products economy – which is vital to many rural and tribal communities – may apply for funding to expand manufacturing capacity.

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