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The U.S. Forest Service has announced $105.5 million in grants to support 177 wood products and forest industry projects across the country, funding initiatives aimed at expanding manufacturing capacity, strengthening wood products infrastructure and creating new markets for underutilized timber.
The investments, awarded through the agency's Wood Innovations, Community Wood and Wood Products Infrastructure Assistance grant programs, span 44 states and the District of Columbia. According to the Forest Service, the projects are expected to strengthen domestic wood manufacturing, support rural economies, improve forest health and increase the use of low-value timber generated through active forest management.
The funding includes:
- $31 million for 113 Wood Innovations projects
- $17 million for 23 Community Wood projects
- $57 million for 41 Wood Products Infrastructure Assistance projects
For manufacturers across the surface and panel industry, the grants represent continued federal investment in the wood products supply chain. Many projects focus on expanding manufacturing capacity, improving operational efficiency, increasing utilization of small-diameter timber and woody biomass, and developing new products from materials that have historically had limited commercial value.
"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," said U.S. Forest Service Chief Tom Schultz. "There are significant gaps where low-value wood, small diameter trees and restoration byproducts lack viable buyers."
Schultz said the investments are intended to help companies and organizations develop new technologies, products, business models and workforce training that expand markets directly connected to forest restoration.
For the engineered wood, composite panel and mass timber sectors, the funding could help increase the availability of raw materials while encouraging innovation in value-added wood products. The Forest Service noted that creating stronger markets for small-diameter timber and restoration byproducts can improve the economics of active forest management while supporting manufacturers that convert those materials into commercial products.
The agency also said the grants will help reduce wildfire risks by creating markets for material removed during forest restoration and hazardous fuel reduction projects, while supporting jobs and economic development in rural communities.
Award recipients include private companies, tribal organizations, nonprofit organizations, state and local governments and higher education institutions. Collectively, the projects are expected to create and retain jobs while strengthening domestic wood manufacturing and improving long-term forest resilience.
The funding supports the Forest Service's broader efforts to expand active forest management and increase the use of American wood products in manufacturing and construction. A complete list of grant recipients and project descriptions is available through the U.S. Forest Service.
