USDA Releases $537 Million in Biofuel Infrastructure Funding

In a major boost to rural energy development, USDA Secretary Brooke Rollins announced the release of $537 million in obligated funding under the Higher Blends Infrastructure Incentive Program (HBIIP).

biofuel plant
biofuel plant
(Farm Journal)

In a major boost to rural energy development, USDA Secretary Brooke Rollins announced the release of $537 million in obligated funding under the Higher Blends Infrastructure Incentive Program (HBIIP). The funding will support 543 projects across 29 states, advancing President Trump’s energy agenda and fulfilling his Jan. 20 Executive Order on Unleashing American Energy. USDA said the announcement, made at Elite Octane LLC in Iowa — a national leader in ethanol and biodiesel production — spotlighted the administration’s commitment to farmers, ranchers, and small businesses, especially in regions where agriculture fuels bioenergy. “President Trump is honoring our commitment to America’s farmers, ranchers and small businesses, especially here in Iowa where corn and soy growers are crucial to supporting ethanol and biodiesel production,” said Secretary Rollins.

Rollins emphasized a shift away from “misguided climate policies” like the Green New Deal, positioning USDA investments as catalysts for job creation, energy independence, and rural economic growth.

Background on HBIIP. Created during Trump’s first term, HBIIP supports the expansion of biofuel use by funding infrastructure upgrades — such as pumps and storage tanks — that allow gas stations to offer blends like E15, E85, and B20. These fuels are made from U.S.-grown agricultural commodities, benefiting farmers and consumers alike. USDA is also coordinating with the Environmental Protection Agency (EPA) to establish Renewable Volume Obligations (RVOs) that support the biofuel industry and facilitate nationwide, year-round sales of E15, reinforcing biofuels as a pillar of the rural economy.

Impacts: USDA said that with Iowa’s 42 ethanol plants and 10 biodiesel facilities leading the way, the funding is expected to create jobs, diversify the energy supply, and bolster rural resilience amid global trade and energy challenges.

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