The U.S. Department of Agriculture (USDA) is giving out $537 million in funding via the Higher Blends Infrastructure Incentive Program (HBIIP) for American biofuel infrastructure.

Those HBIIP funds are being released for over 540 projects across 29 states, the USDA said Monday as it announced the move.

The HBIIP seeks to “expand the production of domestic biofuels” like E15, E85 and B20 “by helping fueling stations install the pumps, storage containers, and other necessary infrastructure needed to offer biofuel options at the pump,” according to the department. The program dates back to 2020.

(J. David Ake/Getty Images/File)

The USDA also said HBIIP grants “protect American farmers from retaliatory trade practices, diversifies the nation’s energy supply, creates jobs and supports economic growth in rural communities.” 

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New projects that received approval after President Donald Trump took office in January are among some of those receiving the $537 million in grants, according to the USDA. 

“President Trump is honoring our commitment to America’s farmers, ranchers and small businesses, especially here in Iowa, where corn and soy growers are crucial to supporting ethanol and biodiesel production,” USDA Secretary Brooke Rollins said. “Through HBIIP, we will expand access to domestic, homegrown fuels, which will increase good-paying jobs for hardworking Americans, restore rural prosperity and strengthen our nation’s energy security.”

President Donald Trump (Jabin Botsford/Washington Post via Getty Images/File)

“We thank @POTUS and @USDA @SecRollings for recognizing the importance of American-made, lower-cost renewable fuels like #ethanol and moving ahead with infrastructure investment grants to expand the availability of #E15 and #E85 nationwide,” the Renewable Fuels Association said on X.

The USDA also said the release of the funding builds upon the Unleashing American Energy executive order that Trump signed on Inauguration Day.

Biodiesel storage tanks are seen at a soybean processing facility in Greenwood, Miss., on March 21, 2021. (Rory Doyle/Bloomberg via Getty Images)

Phil Flynn, senior market analyst at the Price Futures Group and a FOX Business contributor, told FOX Business that he didn’t think the USDA’s move “will have a major impact on domestic energy production” and that it was a “realization by the Trump administration that we need an everything-and-above energy policy to meet demand and have diversified sources that can add to U.S. energy dominance.”

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“The world has changed and those in the energy space, as in oil and gas, no longer see biofuels as direct competition and find that they have found ways to work together in a more complex energy world,” he said. 

He also noted that farmers “need oil to plant and harvest” and that global oil demand and growth “can allow for cooperation and profitability on both sides.” 

The newly announced HBIIP funds could boost domestic biofuel production, according to Flynn.

The Energy Information Administration predicted in March that production of fuel ethanol will amount to 1.05 million barrels per day on average in 2025. For biodiesel, it was a projected average of 100,000 barrels per day. 

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Fuel ethanol blending will amount to 930,000 barrels per day on average this year, according to the EIA’s forecast.

Flynn said that “could increase next year by 10%.”

In 2024, consumption of all types of biofuels totaled 1.31 million barrels a day, according to the March report from the EIA.