The Trees for Residential Energy and Economic Savings Act of 2025 (TREES Act) would create a federal grant program within the Department of Energy to fund tree planting projects intended to reduce residential energy consumption. The program would be established within 90 days of enactment, with guidance from the Agriculture Department (Forest Service). Eligible entities—such as state/local governments, Indian Tribes, nonprofit organizations, and retail power providers—could apply for grants to carry out “covered projects,” which are tree planting efforts designed to lower home energy use. The Act prioritizes projects that maximize energy savings, increase canopy in underserved areas, and promote community engagement and local employment. It also sets an ambitious goal of planting at least 300,000 trees annually, with the federal government covering 90% of eligible project costs, and authorizes $50 million each year from 2026 through 2030 to fund the program, subject to appropriations. Potential impacts include reduced residential energy bills for households (especially in energy-burdened communities), expanded urban canopy, and local job creation. The program emphasizes equity and targeting areas with high energy burden, low tree canopy, aging populations, lower incomes, and high unemployment. Challenges could include ensuring accurate measurement of energy reductions, coordinating across multiple eligibility categories, managing maintenance for up to three years, and securing sufficient annual appropriations to reach the planting goal.
Key Points
- 1Establishment and administration: Creates a DOE grant program to fund tree planting projects aimed at reducing residential energy consumption; program to be established within 90 days of enactment, with consultation from the USDA Forest Service.
- 2Eligibility and applications: Eligible entities include state/local governments, Indian Tribes, nonprofits, and retail power providers. Applicants must describe expected energy reductions, costs and other funding, planned community engagement, and tree species suitability.
- 3Priority criteria: Grants prioritized for projects with the largest potential energy reductions for high energy-burden households; maximize shade and wind protection; located in areas with low tree canopy; in neighborhoods with many seniors or children; low-income areas; strong community engagement; and substantial use of local workers, with emphasis on unemployed or underemployed residents.
- 4Planting goals and funding: Aims to plant at least 300,000 trees per year, to the extent practicable. Federal cost share is 90% of eligible project costs.
- 5Funding and duration: Authorization of $50 million per fiscal year from 2026 through 2030, subject to appropriations. Eligible costs include planning/design, nursery establishment, tree purchase, site preparation, planting, up to three years of maintenance/monitoring, training, and other Secretary-approved costs.
- 6Definitions: Covers projects are tree planting efforts to reduce residential energy use; eligible costs encompass a broad set of activities from planning to maintenance; “energy burden” is the share of income spent on residential energy bills.