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USDA Announces Availability of $7 Million for Advanced Biofuel Production
Tuesday, November 25, 2025

On November 21, 2025, the U.S. Department of Agriculture (USDA) announced that it is making $7 million in payments available to advanced biofuel producers nationwide through its Advanced Biofuel Payment Program, a provision of the One Big Beautiful Bill. USDA states that the funding is aimed at increasing the production of American-grown biofuels. According to USDA, the Program supports expanding the production of advanced biofuels by paying advanced biofuel producers for finished advanced biofuel products. USDA will pay eligible producers on a quarterly basis for the actual quantity of eligible advanced biofuel produced during the quarter. The Program web page states that an advanced biofuel producer can be an individual, corporation, company, foundation, association, labor organization, firm, partnership, society, joint-stock company, governmental entity, school and other types of educational facilities, a group of organizations, or a nonprofit entity that produces and sells an advanced biofuel. USDA notes that an entity that blends or otherwise combines advanced biofuels into a blended biofuel is not considered an advanced biofuel producer under this Program. Eligible advanced biofuels:

  • Must meet the definition of an advanced biofuel in 7 C.F.R. Section 4288.102;
  • Are a liquid, gas, or solid;
  • Must be derived from renewable biomass, other than corn kernel starch;
  • Must be a final product;
  • Are produced in the United States; and
  • Are ones where the buyers and sellers act independently and have no relationship to each other.

The Program Enrollment Period for this opportunity is October 1, 2025, through December 15, 2025.

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