Key Updates
In Fiscal Year 2026 USDA Rural Development Invested
$315.9 Million in Rural Illinois
Fiscal year 2026 was a great year for rural Illinois communities, businesses, and homeowners. USDA Rural Development invested $315.9 million in rural Illinois. The fiscal year 2026 investments wouldn’t be possible without the amazing Rural Development Illinois team. We thank them for their dedication to rural Illinois. READ THE NEWS RELEASE
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We are a month into the new fiscal year, and it is already off to a great start. Since the beginning of the new fiscal year, USDA has announced these programs:
We encourage you to explore programs you think might be the best fit for you and your plans. Please let us know how we can help with applications, clarification on policy updates, or anything else to support your projects. -- USDA Rural Development Illinois State Director Jesus Ortega
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Rural Opportunity Zones 2.0 Takes Effect in January
OZ 2.0: Big Beautiful Impacts for Rural Illinois
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Director Ortega spoke on OZ 2.0 at the Southern Illinois Now Annual Development Day in Marion. Under the leadership of President Trump and Secretary Rollins, OZ 2.0 will bring big impacts to rural Illinois. |
OZ 2.0 is a rolling 10-year permanent federal capital gains tax incentive included in the Big Beautiful Bill and signed by President Trump, to incentivize housing and business development, with enhanced benefits in rural areas. Rural Development stands ready to assist OZ 2.0 designated communities with these projects.
USDA Accepts Letters of Interest for $175 Million Available Under Affordable Rural Cooperative (ARC) Energy Program
The USDA is accepting Letters of Interest for the Affordable Rural Cooperative (ARC) program. Under this new program, $175 million is available to boost rural nuclear power and strengthen the reliability of America’s electric power transmission. Stakeholder Announcement
BioPreferred Website Navigation Enhancements
The BioPreferred Program website was enhanced to improve navigation and reflect the recently published streamlined regulation. Stakeholder Announcement
USDA Accepting Applications for Programs To Improve Water and Waste Disposal Infrastructure
The USDA is now accepting applications for programs to improve water and waste disposal infrastructure for communities across the nation. The Solid Waste Management Grants program and the Water and Waste Disposal Technical Assistance and Training Grants program are open for applications now through December 31, 2026. | Stakeholder Announcement
Trump Administration Announces $5 Billion SPUR Guaranteed Loan Program to Expand Processing for American Ranchers and Fishermen
The SPUR program provides a 90 percent loan guarantee to commercial lenders, enabling them to offer financing to eligible borrowers. These loans support a wide range of activities aimed at expanding, improving, and diversifying the processing capacity for American meat, poultry, and seafood. READ THE NEWS RELEASE
USDA Awards Grants to Three Villages for Water Infrastructure Projects
USDA is investing $930,000 in water infrastructure projects for the villages of Camp Point, Roseville, and Stronghurst.
“Thanks to the leadership of President Trump and Secretary Rollins, USDA Rural Development is supporting water infrastructure projects that are vital to rural Illinois communities,” said State Director Ortega. “These investments are critical to the individuals, families, and businesses that reside in rural Illinois to ensure they have access to safe drinking water.” READ THE NEWS RELEASE
USDA Partners with Egyptian Electric Cooperative to Invest in Southern Illinois Projects
USDA is partnering with Egyptian Electric Cooperative Association to invest $1.3 million in projects in Jackson and Monroe Counties.
USDA’s Rural Economic Development Loan and Grant Program provided $1.3 million in funds to Egyptian Electric Cooperative Association for the following two projects:
- Degognia-Fountain Bluff Levee and Drainage District received $300,000 to install relief wells within a drainage and levee district in Jackson County. The new relief wells will protect 16,000 acres of farmland from flooding.
- Monroe County Electric Cooperative received $1 million to purchase property for equipment storage near the cooperative’s headquarters in Waterloo.
READ THE NEWS RELEASE
USDA Highlights Disaster Assistance in "Disasters and Federal Resources" Roundtable
USDA has programs available to help eligible rural Illinois residents, businesses and communities recover and rebuild after a disaster.
“Under President Trump’s leadership, Secretary Brooke Rollins has made delivering timely disaster assistance a top priority,” said State Director Ortega. “USDA Rural Development remains committed to investing in long-term resilience through repairing homes, businesses, critical infrastructure, and services.”
In August, U.S. Representative Mike Bost held “Disasters and Federal Resources” roundtable events in both Marion and Effingham. State Director Ortega highlighted USDA disaster assistance programs during the events with local, state and federal leaders.
READ THE NEWS RELEASE
USDA Invests Nearly $1 Million in Stelle for Critical Wastewater Infrastructure
The Stelle Community Association is receiving a $260,000 loan and $703,000 grant from USDA Rural Development. The association’s wastewater system improvements include constructing a covered, aerated lagoon system; installing a polishing reactor; replacing sand filter media; and repairing the existing recirculating sand filter. These improvements will remedy health and safety issues and will bring the facility up to acceptable standards. This project will serve 53 households in Ford County. READ THE NEWS RELEASE
USDA Invests in Water Infrastructure for the Village of Wilsonville
The Village of Wilsonville is receiving a $652,000 loan to construct a new water tower and purchase new radio read software and remote read meters. These improvements will eliminate health and sanitary concerns, decrease water loss, and will help the village meet Illinois Environmental Protection Agency standards. This project will help ensure the village is providing safe, potable water for more than 570 people in Macoupin County. USDA is administering the funding through Rural Development’s Water and Wastewater Environmental Programs. READ THE NEWS RELEASE
USDA Invests in Value-Added Agricultural Products in Illinois
USDA invested $380,833 in Value-Added Producer Grants to Microcosm Farm LLC in Shabbona and Savannah Ridge Farms in Indianola. READ THE NEWS RELEASE
Field Notes
New USDA Rural Development Under Secretary Glen R. Smith visited with State Director Ortega at the Farm Progress Show
In August, we welcomed the new Under Secretary for USDA Rural Development Glen R. Smith (top photo, on the left). At the Farm Progress Show in Boone, Iowa, he talked with Illinois State Director Ortega (top photo, center) and WHO Radio farm broadcaster Bob Quinn (top photo, right) and Illinois Farm Bureau RFD Radio broadcaster James Taylor (bottom photo, right) about the next generation of rural programs and agriculture innovation. An annual three-day event, the Farm Progress Show is the nation’s largest outdoor farm event, hosting more than 600 exhibitors from around the world.
 
Regional Office of Education #45 Receives $808,583 Distance Learning Grant
Under the leadership of President Trump, Vice President Vance, and Secretary Rollins, Rural Development is investing millions of dollars in education and healthcare. Through the Distance Learning & Telemedicine (DLT) Grant Program, Regional Office of Education #45 in Red Bud received a DLT grant to connect nine rural school districts with educational opportunities like dual credit course options and foreign language classes.
City of Washington Eligible for Rural Development Business Programs
Director Ortega visited with the City of Washington recently to celebrate their recent rural area eligibility for Rural Development business programs. This change ensures that businesses in the community can benefit from Rural Development programs.
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In Fiscal Year 2026 More Than $34 Million Invested in Rural Illinois through USDA Water and Environmental Programs
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It was another great year for our Water and Environmental programs, with investments of more than $34 million in fiscal year 2026. We couldn’t help as many communities bring safe drinking water to their residents without the assistance of circuit riders and staff of the Illinois Rural Water Association. Thank you to the Illinois Rural Water Association for your support of rural communities and their needs. |
USDA Invests $4.7 Million in Fosterburg Water District Project
Director Ortega visited the Fosterburg Water District with funding for an additional phase of their project to expand the distribution system and looping of water mains for Phase V. This will provide potable water to more rural users in the Madison and Macoupin counties area, and also areas in Dorchester and Macoupin townships. The USDA has invested more than $4.7 million in this project.
Ag Day at The Illinois State Fair
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Under the leadership of President Trump, Vice President Vance, and Secretary Rollins, Director Ortega is cultivating partnerships throughout the state to ensure Rural Development programs are well known. On a rainy Ag Day at the Illinois State Fair, he met with many of these partners to ensure Rural Development programs are reaching every sector and area of rural Illinois. |
Co-Op Month 2026: USDA Works with Cooperatives for Rural Prosperity in Illinois
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Director Ortega met with members of the Association of Illinois Electric Cooperative during their annual meeting recently. Director Ortega talked with electric cooperatives from around the state. Rural Development and the Association of Illinois Electric Cooperatives are long-standing partners as Rural Development’s Rural Economic Development Loan and Grant program helps Illinois cooperatives fulfill their principle, Concern for Community. READ THE NEWS RELEASE |
Rural Development Helps Small Businesses
Director Ortega visited Royal Super Mart in Sheffield, where he saw how a Rural Energy for America Program grant has helped improve HVAC system efficiency. Small businesses are the heart of the community, and Rural Development is here to support them.
Visit To Galena
Director Ortega had the opportunity to meet with Galena Area Chamber of Commerce Executive Director Barb Hocker (far right in photos below) to discuss Rural Development programs that can assist local businesses. From small to large projects, Rural Development is here to support businesses and grow jobs. While in Galena, Director Ortega enjoyed meeting with Galena Mayor Terry Renner (right in below photo on left); and Galena City Administrator Matt Oldenburg (center in below photo on left); to discuss how Rural Development can help with housing, business and community development. Under the leadership of President Trump and Secretary Rollins, Rural Development is committed to the future of rural communities like Galena. Please let us know if you would like Director Ortega to visit your rural community.
Thank you, USDA Rural Development Illinois Team
USDA Rural Development Illinois has fantastic staff! While in Jacksonville, Director Ortega recently congratulated Alison (right in top right photo); and Nichole (left in bottom right photo); on five years of service and Dwight (left in photo on left) on his recent service to Rural Development as he came out of retirement to assist communities. Thank you for your service and dedication.
Great River Economic Development Foundation
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Fiscal year 2026 was a great year for Illinois Rural Development, as we visited with hundreds of communities and stakeholders across the state, like the Great River Economic Development Foundation in Quincy. If we haven’t met with you yet, please reach out. |
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