Why It Matters
The Higher Blends Infrastructure Incentive Program (HBIIP), a USDA cost-share grant program for higher-blend fuel infrastructure, has exhausted its funds, and USDA has stated it will make no further obligations without a future appropriation, according to a new Congressional Research Service (CRS) report. The Inflation Reduction Act of 2022 provided $500 million to HBIIP, and Congress has not authorized or directly appropriated additional funding since then.
The Big Picture
HBIIP was created by USDA in 2020 to increase sales and use of higher blends of ethanol and biodiesel, such as E15, by awarding cost-share grants for upgrading or installing compatible fueling and storage infrastructure. The report notes that nationwide high-blend fuel consumption is difficult to ascertain, and infrastructure costs vary by facility. It remains unclear whether federal support induces station owners to upgrade.
The Trump administration froze HBIIP funds in 2025, then on March 31 announced it would release approximately $537 million in obligated funding for 543 projects. USDA subsequently declared that the funds have been exhausted and stated no further obligations would be made absent future appropriation.
The Nationwide Consumer and Fuel Retailer Choice Act of 2025, which would allow year-round sale of E15 and change the small refinery exemption under the Renewable Fuel Standard, has passed the House. The Agricultural Act of 2026 has been reported out of the Senate Committee on Agriculture, Nutrition, and Forestry and would also allow year-round E15 sales. In a June 24 supplemental funding request to Congress, the Trump administration separately asked for "an urgent and needed fix that codifies the permanent, year-round sale of E-15."
On June 17, USDA announced a Rural Development reorganization that will relocate some Rural Business-Cooperative Service functions to Dallas-Fort Worth, Texas. The report says it is unclear whether that change will affect HBIIP administration.
The Bottom Line
With HBIIP funds exhausted, USDA will not make further obligations absent future appropriation, and bills that would allow year-round E15 sales remain before Congress. The CRS report says it is unclear whether federal involvement and investment would encourage fueling station owners to upgrade their infrastructure, and that Congress may choose to take no action.
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