The U.S. Department of Agriculture (USDA) Forest Service's 2025 Wood Innovations Funding Opportunity (CFDA 10.674) seeks to develop wood products and wood energy markets across the United States, promoting forest health, reducing hazardous fuel costs, and supporting economic stability in forested communities. With $8 million allocated under the Bipartisan Infrastructure Law and the Inflation Reduction Act, this program focuses on projects that increase demand for wood products from forest restoration activities, expand markets for domestically sourced timber, and support wood energy initiatives. Proposals must be submitted by December 11, 2024, with final selections anticipated by May 2025 and awards expected to be executed by October 2025.

Eligible applicants include for-profit organizations, governmental agencies, Tribes, educational institutions, and non-profits. Projects must demonstrate market expansion for wood products sourced from National Forest System or other U.S. forest lands and may involve efforts such as manufacturing wood products, establishing wood energy systems, or supporting mass timber markets. Proposals benefiting underserved communities, as defined by Executive Order 13985, are strongly encouraged. The program offers funding up to $300,000 per project, with potential exceptions up to $1 million for high-impact projects involving wood energy systems rated above 5 megawatts of thermal output. All funds are provided on a cost-reimbursement basis.

Applicants must provide matching funds equivalent to at least 100% of the requested federal funds, and matching contributions must come from non-federal sources, either as cash or in-kind support. Proposals should include letters of commitment from third-party contributors. Additionally, applicants should detail prior funding received for similar projects within the last five years, and all proposed match contributions must adhere to federal cost principles.

The application package includes two parts: (1) the Project Narrative, including contact information, goals, objectives, project impact, team qualifications, and a budget narrative with justification, and (2) required financial forms (SF-424 series). The narrative’s appendices should contain supporting materials, such as letters of support, a SAM.gov registration screenshot, and resumes of key personnel. SAM registration is required, and the registered information must match the application details.

Proposals will be evaluated on their alignment with the program’s objectives, including clarity of project goals, potential market impact, and relevance to forest management. Each proposal can earn up to 100 points based on project goals (15 points), description (35 points), impact (35 points), and team qualifications (15 points). Ineligible uses of funds include construction, production labor, and self-marketing expenses. Mobile equipment purchases are also not funded, though projects focused on stationary wood energy systems, particularly those tied to forest restoration, are strongly encouraged.

Applicants are advised to consult with the regional Forest Service Wood Innovations Coordinator to ensure proposal alignment with regional priorities and improve application quality. Awarded projects will require quarterly progress reports and a final comprehensive report to document accomplishments. This ongoing reporting supports the program’s commitment to transparency and effective forest management across U.S. forested lands.