2026 National Urban and Community Forestry Challenge Cost Share Grant Program

The U.S. Department of Agriculture Forest Service is the federal agency responsible for this funding opportunity. The Forest Service manages National Forest System lands and provides technical and financial assistance to state, private, and tribal lands. Its mission is to sustain the health, diversity, and productivity of the Nation's forests and grasslands for present and future generations. The Urban and Community Forestry Program is authorized under the Cooperative Forestry Assistance Act of 1978, as amended, and the National Urban and Community Forestry Advisory Council defines annual grant categories for the National Urban and Community Forestry Challenge Cost Share Grant Program. The Community Tree Resource Utilization opportunity is an annual grant announcement under Assistance Listing 10.675, Urban and Community Forestry Program, and Funding Opportunity Number USDA-FS-UCF-01-2026. The purpose of the National Urban and Community Forestry Challenge Cost Share Grant Program: Community Tree Resource Utilization is to advance solutions to economic, health, and environmental challenges faced by communities through improved use of community tree resources. The funding priority is waste reduction and product creation through the economic use of community tree resources at the end of their life cycle. Wood generated through pruning, tree removal, storms, insect outbreaks, or disease outbreaks may be converted into products such as dimensional lumber, wood slabs, furniture, cabinetry, flooring, biochar, and other useful materials. Projects should be practical, creative, innovative, sustainable, and replicable and should complement existing community forestry management plans and programs. Projects are expected to improve urban and community forest management, develop programs and resources for community forestry stewardship, promote better use of technology and tools, and generate economic, environmental, workforce, or community benefits. Approximately $1 million in total program funding is estimated, with 3 to 5 awards expected and individual awards of up to $500,000. The Forest Service may award less than an applicant requests based on funding availability and project eligibility. Cost sharing is mandatory. Every applicant must provide a 1:1 match of Federal funds with non-Federal funds, which may consist of cash, services, or eligible in-kind contributions and must be verifiable in the recipient's records. Eligible costs must comply with applicable Federal requirements. Applicants may request indirect costs under an established Negotiated Indirect Cost Rate Agreement or the 15 percent de minimis rate of Modified Total Direct Costs, subject to the stated rules. Unallowable costs include construction or improvements to buildings, roads, building space, or other facilities; purchases of equipment as defined in 2 CFR 200.1; unrelated self-marketing or self-promotion; and Federal activities previously funded by or matched with Forest Service funds. When using the de minimis rate, waived indirect cost is not allowable as match. Eligible applicants include U.S. state governments, the District of Columbia, U.S. territory or possession governments including freely associated states, federally recognized Tribal governments, other Indian, Native American, and Alaska Native Tribal governments, interstate organizations, county governments, municipalities and township governments, special district governments, local government consortia and combinations, regional organizations, nonprofit and not-for-profit organizations, educational institutions, and other eligible community-based partners described in the notice. Federal agencies, non-U.S. citizens, non-U.S. organizations and businesses, private businesses, and individuals are ineligible. Applicants that do not meet the eligibility requirements, do not provide the required 1:1 cost share, do not have an active SAM.gov registration at application, or do not address Community Tree Resource Utilization will be removed from consideration. There is no stated limit on the number of applications an eligible applicant may submit. Applications must contain a detailed Project Narrative limited to 10 pages, a separate Budget Narrative, SF-424, SF-424A, and letters of partnership when applicable. The Project Narrative includes Proposal Description, Literature Review, Product, Collaboration, National Distribution and Scalability, Project Evaluation, and Experience, Personnel, and Adequacy of Resources. Applicants must document baseline conditions to the extent possible and explain when baseline data are unavailable. Applications should identify relevant wood utilization products, community needs and support, employment and training opportunities, partnerships, integration with existing community forest management plans, national distribution or scalability, evaluation measures, and qualified personnel. Applications may be submitted electronically through Grants.gov, which is preferred, or as a hardcopy to Nancy Stremple, USDA Forest Service, 201 14th Street SW, Washington, DC 20250. Applicants must register in SAM.gov before applying, provide a valid Unique Entity Identifier, and maintain an active SAM.gov registration. No pre-application, letter of intent, or similar preliminary submission is required. Applications undergo an initial responsiveness and eligibility review followed by scoring and ranking by a national review panel consisting of USDA Forest Service and State agency staff, subject matter experts, and Council representatives. The maximum score is 100 points: Proposal Description is worth 20 points; Literature Review, 5 points; Product, 15 points; Collaboration, 15 points; National Distribution and Scalability, 10 points; Project Evaluation, 10 points; Experience, Personnel, and Adequacy of Resources, 15 points; and Budget Narrative, 10 points. Review emphasizes innovation, measurable benefits, community tree resource utilization, integration with forestry planning, collaboration, scalability, evaluation, team capability, cost efficiency, and meaningful local investment. Highest-ranking proposals proceed for recommendations, and the Forest Service considers recommendations from the appropriate State Forester and the Council. A pre-award risk assessment also considers financial stability, performance history, audit findings, and the applicant's capacity to carry out the project. Application materials were released August 12, 2026, and completed applications are due October 12, 2026, at 5:00 PM Eastern. The anticipated award date is December 12, 2026, although the full review and award process may take up to six months depending on application volume. Successful applicants are notified by email and must complete required pre-award documentation before an award agreement is executed. Project costs incurred before award execution generally are not reimbursable and cannot count toward the match unless explicitly authorized as pre-award costs. Award activities must be completed within three years, although an additional two years may be approved by the Forest Service, and funding agreements cannot extend beyond five years. Recipients must submit semi-annual financial and narrative reporting, including applicable quantitative performance measures for community wood utilization, workforce development, and operational and market improvements. Program questions may be directed to Nancy Stremple at SM.FS.nucfac@usda.gov. Grants.gov assistance is available at 1-800-518-4726 or support@grants.gov.

Demonstrate a clear and feasible innovation that addresses a documented community tree resource utilization need; specify anticipated wood products and their economic viability; connect utilization activities to existing community forest management plans; document community support and meaningful partnerships; identify barriers and explain how they will be addressed; establish measurable utilization, workforce, market, and operational outcomes; show how products, tools, or methods can be distributed nationally and replicated by communities with different capacities; demonstrate directly relevant team experience and sufficient resources; align every budget item with project activities and deliverables; demonstrate cost efficiency and meaningful non-Federal investment that supports sustainability beyond the award period.