Federal News
USDA Funds Timber Production Expansion in Eight States
March 23, 2026
The U.S. Department of Agriculture (USDA) announced a $115.2 million investment through the Timber Production and Expansion Guaranteed Loan Program to support sawmills and wood processing facilities across eight states, including California, Wisconsin, Kansas, Oklahoma, Mississippi, and Idaho. This funding aims to increase timber production by 25%, reduce wildfire risks, and strengthen rural economies by creating and retaining jobs. Key loans include a $25 million investment in a biomass gasification plant in Wilseyville, California, and multiple loans to sawmill projects in Wisconsin and Kansas. The initiative is a collaborative effort with the U.S. Forest Service to promote sustainable forest management and wildfire mitigation.
- Why this matters: Procurement professionals should note the significant federal funding directed at timber industry infrastructure, presenting opportunities for contractors specializing in sawmill construction, biomass energy facilities, and forest management equipment.
- The program supports rural economic development and wildfire risk reduction, aligning with federal priorities for sustainable resource management and community resilience.
- Companies involved in timber processing, biomass energy, and related equipment supply can leverage this funding cycle to pursue contracts and partnerships.
- Agencies and contractors should consider the geographic focus on California, Wisconsin, Kansas, and other states for targeted business development and compliance with sustainable forestry practices.
The American forest products industry is critical to maintaining the health of the nation's forests. The Timber Production and Expansion Guaranteed Loan Program is one of many ways the Forest Service partners with the timber industry to maintain rural jobs, processing facilities, and an outlet for wood that needs to be removed from national forests.
— Tom Schultz, U.S. Forest Service Chief
Under the leadership of President Trump and Secretary Rollins, USDA is committed to timber industry innovations that improve forest health and reduce wildfire threats while creating good-paying jobs for people in rural, forest-dependent communities in Wisconsin. The funding that is being announced nationally today will support projects in Wisconsin that are a win for Wisconsinโs economy, consumers who want American-made products, and forest management.
— Andrew C. Iverson, State Director, USDA Rural Development Wisconsin
After years of severe wildfire impacts across the golden state, California is grateful to receive the largest TPEP investment in the nation. This funding reflects the Trump Administrationโs commitment to protecting our state from wildfire risks, while strengthening domestic timber industries that create jobs and keep our forests clean.
— Bryan Anguiano, California State Director
Agencies
U.S. Department of Agriculture, U.S. Forest Service, U.S. Department of Agriculture Rural Development, California State Office of USDA Rural Development, USDA Rural Development Wisconsin
Vendors
Beachcombers, LLC, Timber Professionals Cooperative Enterprises, Blue Mountain Electric Company, LLC, Alpenglow Timber LLC, Sierra Forest Products Holdings, Inc
Contracts
$115.2 million, $25 million, $18.5 million
Locations
Sources
- USDA Announces $115.2 Million in Eight States to Capitalize on Timber Production and Protect our Communities from Devastating Wildfires | Rural Development · USDA · Mar 23
- USDA Announces $115.2 Million in Eight States, $1.72 Million in Kansas, to Capitalize on Timber Production and Protect our Communities from Devastating Wildfires | Rural Development · USDA · Mar 23
- USDA Announces $115.2 Million in Eight States to Capitalize on Timber Production and Protect our Communities from Devastating Wildfires | Rural Development · USDA · Mar 20
- USDA Announces $115.2 Million Investment to Expand Timber Production and Enhance Forest Health in Eight States | Rural Development · USDA · Mar 23