TREES Act Authorizes $250 Million for Tree Planting to Cut Residential Energy Bills

The Trees for Residential Energy and Economic Savings Act of 2025 (TREES Act) aims to use the simplest form of natural cooling—planting trees—to tackle high utility bills. This bill sets up a new grant program under the Department of Energy, authorizing $50 million annually from Fiscal Year 2026 through 2030 to fund tree planting projects specifically designed to reduce how much energy homes use. The goal is ambitious: plant at least 300,000 trees every year, covering 90% of a project’s costs, which includes up to three years of maintenance and monitoring.

The Shade Strategy: Lowering Your Power Bill

Think of this as a targeted investment in shade and windbreaks. The core requirement for any organization—be it a local government, a nonprofit, or even a power provider—to get a grant is proving that their tree planting will actually cut down on residential energy consumption. Applicants must detail their expected energy savings and explain why they chose specific tree species for their local environment (SEC. 2. How to Get a Grant). For instance, a project might focus on planting deciduous trees on the south and west sides of homes to block summer sun, which is a game-changer for anyone running an AC unit all day. The federal government is willing to pick up most of the tab, funding 90% of eligible costs like buying trees, preparing the land, and training workers (SEC. 2. Program Goals and Funding Details).

Prioritizing the Energy Burden

This isn't just about planting trees anywhere; it’s about directing the money where it can do the most good, especially for those who need relief from rising costs. The Secretary of Energy must prioritize projects that promise the biggest energy savings for homes already facing a high “energy burden”—meaning they spend a large percentage of their income just to keep the lights on and the house cool (SEC. 2. Who Gets Priority for Funding). If you live in a neighborhood with few existing trees, or one with lots of seniors or children, or where the average income is below the regional median, your area will be at the front of the line for these grants. This focus ensures that the federal investment tackles both environmental equity and economic pressure simultaneously, helping households that can least afford high utility bills.

Local Jobs and Implementation Details

Beyond the energy savings, the TREES Act is designed to create local jobs. Projects get extra points for prioritizing the hiring of local residents, particularly those who are currently unemployed or underemployed. This means the money not only buys trees and lowers energy costs but also supports community employment (SEC. 2. Who Gets Priority for Funding). However, there is one detail that raises an eyebrow: the definition of “Eligible cost” is quite broad. While it covers essential items like purchasing trees and maintenance, it also includes “anything else the Secretary decides is appropriate” (SEC. 2. Defining Key Terms). This gives the Secretary a lot of discretion over how $50 million is spent annually, which is something to watch closely as the program rolls out.

The Bottom Line for Taxpayers

For the average person, the TREES Act means federal money—$250 million authorized over five years—is being directed toward a tangible, local solution for energy costs. If you live in a targeted neighborhood, you could see lower summer energy bills thanks to strategically placed trees that you didn't have to pay for. If you’re a local nonprofit or a small business looking for community improvement projects, this grant program offers a significant new funding stream. The biggest challenge will be ensuring the Department of Energy and the Forest Service, who must coordinate on this, can effectively manage a large-scale, nationwide planting effort that meets the strict energy-saving requirements laid out in the bill.