US Forest Service Awards $105.5 Million in Grants to Support Wood Products Industry

On Wednesday, the US Forest Service (USFS) announced $105.5 million in wood innovation grants for 177 projects nationwide aimed at supporting active management of national forests and grasslands, expanding wood and energy infrastructure, increasing manufacturing capacity and operational efficiency, and supporting rural jobs and economic development.

The funding includes $31 million for 113 wood innovation projects, $17 million for 23 community wood projects, and $57 million for 41 wood products infrastructure assistance projects. The projects span 44 states and the District of Columbia and are intended to create and retain jobs, reduce wildfire risks near federal and tribal lands, improve forest health, and expand opportunities for forest products businesses.

USFS said the wood products industry provides markets for materials generated through active forest management, including small-diameter timber, dry and overgrown vegetation, and other industrial byproducts.

Commenting on the grants, USFS Chief Tom Schultz said:

“The greatest threat to forest landowners and those who use forests is the lack of critical markets in today’s timber and wood products industries. There are significant gaps where low-value wood, small diameter trees, and restoration byproducts lack viable buyers. To close these gaps, we are investing in companies and organizations that are developing technologies, products, business models, and training to expand and strengthen markets directly connected to forest restoration. Over time, this will help create new uses for underused materials, strengthen rural economies, improve forest health, and make forest management more financially sustainable.”