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The U.S. Forest Service (Forest Service) is requesting proposals under the Fiscal Year 2026 Wood Innovations Grant Program to substantially expand and accelerate wood products and wood energy markets throughout the United States in support of forest management needs on National Forest System and other forest lands.

Up to $30 million in total funding is available, with applications due April 22, 2026.

What is the purpose of the Forest Service Wood Innovations Grant Program?

The intent of the Wood Innovations Funding Opportunity is to stimulate, expand, and support U.S. wood products and wood energy markets to support the long-term management of National Forest System and other forest lands.

Program funding priorities include:

• Create or expand markets for wood and biomass generated by forest health and hazardous fuels reduction projects on National Forest System and other U.S. forested lands.
• Support development of domestically sourced timber and U.S. manufacturing of mass timber and other wood products.
• Involve wood products or wood industry partners.
• Support commercial building markets or other markets that use innovative wood products.
• Demonstrate how the project will reduce land management costs.
• Bundle or address multiple wood energy or wood products projects.
• Commit to utilizing domestically sourced timber for mass timber construction projects.

The program aligns with Forest Service goals to:

• Reduce wildfire risk and improve forest health
• Reduce the costs of forest management
• Promote economic and environmental health of communities

Preference will be given to proposals that expand markets for wood and biomass generated by forest health and hazardous fuels reduction projects and support domestically sourced timber and U.S. manufacturing.

Who is eligible to apply?

Applicants must obtain a Grants.gov account and maintain active registration in the System for Award Management (SAM.gov) throughout the life of the award. Eligible applicants include:

• For-profit entities
• State and local governments
• Indian tribes
• Not-for-profit organizations
• Institutions of higher education
• Special purpose districts (e.g., public utilities districts, fire districts, school districts, conservation districts, ports)

What projects are eligible?

In practical terms, this program supports projects that turn low-value or excess wood – such as small-diameter trees, forest thinning materials, and woody biomass – into useful products and energy. Whether it’s expanding a sawmill, launching a mass timber manufacturing line, installing a wood energy system at a public facility, or building new markets for forest-derived materials, the goal is to create real, scalable demand for wood that supports forest health and reduces wildfire risk.

Examples of eligible projects include, but are not limited to:

• Completing architectural, engineering, cost analysis, and permitting requirements for commercial wood construction or wood energy projects seeking financing (early project development proposals or feasibility studies will not be competitive)
• Establishing or expanding wood products manufacturing capacity and markets that support forest restoration
• Demonstrating environmental and economic benefits of wood as a sustainable building material in commercial projects
• Establishing or expanding statewide wood utilization or wood energy teams
• Developing clusters of wood energy projects or installing stationary wood energy systems
• Purchasing stationary wood energy or wood products equipment to create markets supporting forest management

Construction of buildings, purchase of mobile equipment, raw material costs, and operational labor are not allowable with federal or match funds.

What are the funding levels for this program?

• Total estimated funding: Up to $30 million
• Expected number of awards: Up to 100
• Typical maximum award: $300,000

The Forest Service may consider awards up to:

• $500,000 for projects demonstrating significant and sizeable market impact (with prior consultation), and
• Up to $1,000,000 for stationary wood energy systems rated greater than 5 Megawatts in thermal output that meet specified efficiency criteria.

Is there a cost-sharing or match requirement?

Yes. Applicants must contribute matching funds equal to at least 100% of the Forest Service requested amount (1:1 match). Match must come from non-Federal sources and may include cash or in-kind contributions. Letters confirming third-party match commitments are required. No additional points are awarded for match beyond the required 1:1 contribution.

When are applications due?

Applications must be submitted through Grants.gov by April 22, 2026. Award announcements are expected in June 2026.

The request for proposals and full application instructions can be found on Grants.gov under Funding Opportunity Number USDA-FS-WOOD INNOVATIONS-2026 (Assistance Listing 10.674).

For more information on this grant or how to apply with Morrison’s assistance, please contact the Morrison Grants Team by email at grants@morrisonco.net or call us at 530-893-4764.