USDA Forest Service Wood Innovations Grant Program
USDA Forest Service
Up to $500,000
Expand wood markets, reduce wildfire risk
The Wood Innovations Grant Program funds projects that expand US wood products and wood energy markets, reduce wildfire risk through forest thinning, and support rural forest-dependent economies. For-profit wood products manufacturers, sawmills, mass timber companies, and biomass energy businesses are eligible. Minimum grant is $300,000 with a required 100% non-federal match. Projects in later commercial stages are preferred over early-concept proposals.
- Funding type
- Grant
- Level
- Federal
- Amount range
- $300,000 – $1,000,000
- Realistic amount
- Most awards are $300,000–$400,000. The $500,000 and $1M tiers require demonstrating significant market or energy system…
- Deadline
- Annual — FY2026 deadline was April 22, 2026 (passed); FY2027 expected spring 2027
- Status
- between-intakes
- States
- Nationwide
- Payment model
- reimbursement
Who qualifies
- For-profit entities, state and local governments, Indian Tribes, school districts, nonprofits, institutions of higher education, and special purpose districts
- Projects must focus on wood energy or wood products market expansion, forest management cost reduction, or support for community economic/environmental health
- Later-stage commercial projects preferred over early-phase concepts
- 100% non-federal dollar-for-dollar match required from applicant or partners
- Must have active SAM.gov registration and Grants.gov account
- Projects must demonstrate measurable market expansion or forest management outcomes
Hard requirements
- Must be incorporated
What it covers
Eligible expenses
- Procurement or upgrade of wood processing equipment (sawmills, kilns, pellet mills, mass timber presses)
- Market development and marketing activities for domestic wood products
- Research and development of new wood product applications
- Wood energy system installation (boilers, combined heat and power, district heating fueled by woody biomass)
- Demonstration of mass timber construction for commercial or institutional buildings
- Forest thinning, slash utilization, and small-diameter wood utilization projects
- Technical assistance and training for wood products manufacturers
Ineligible expenses
- Basic research or early-concept projects (later-stage commercial development preferred)
- Acquisition of standing timber or timberland
- Activities solely for a producer's own private benefit without demonstrable market or forest management impact
- Lobbying
- Activities in timber harvest without downstream wood products development
How to apply
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1
Review program priorities and register in SAM.gov/Grants.gov
Review the annual Notice of Funding Opportunity (NOFO) for current priority focus areas (mass timber, renewable wood energy, hazardous fuel reduction). Register in SAM.gov (UEI) and Grants.gov well before the deadline — both can take 7–14 days to activate.
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2
Develop project concept and secure match
Projects must demonstrate 100% non-federal match ($1 for every $1 of Forest Service funding). Identify and document committed match sources — private investment, state grants, equipment contributions, or other non-federal funding. Proposals lacking a secured match are scored lower.
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3
Prepare and submit application via Grants.gov
Submit the full application package including project narrative, budget, match documentation, and organizational capacity information. Applications go through Grants.gov. Forest Service program staff at your regional office are available for pre-application conversations.
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4
Technical review and award
Forest Service conducts technical merit review. Awards are announced approximately 3–4 months after the deadline. Projects are expected to run 1–3 years with performance reporting requirements.
Industry & certifications
NAICS codes: 113310, 321, 321213, 321219, 3219, 322, 32321
The 100% match requirement is real — you need $1 of committed non-federal funds for every $1 requested. Projects combining mass timber market development with wildfire risk reduction score best in current political climate.
Deadline & timing
The FY2026 Wood Innovations Grant deadline was April 22, 2026 (now closed). The program runs annually. FY2027 opportunity expected to open in late 2026 or early 2027. Check fs.usda.gov/science-technology/energy-forest-products/wood-innovation/grants for the next announcement.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.