By Cora Hoffer

senior policy associate, 

Center for Rural Affairs

Energy affordability and reliability are being threatened in rural America, with costly consequences for families, farmers, and small-town economies.

On July 23, the U.S. Department of Energy rescinded a $4.9 billion federal loan guarantee for a new high-voltage transmission line designed to deliver power across the Midwest, including low-cost wind and solar energy resources.

The 800-mile Grain Belt Express would have moved energy from Kansas to Illinois, connecting four major grid regions for the first time in U.S. history. Its cancellation cuts off millions from access to more reliable energy. By linking major grid regions, the project would have improved energy flow, ensuring power could reach the places it is needed. The more connected the system, the more reliable the grid.

A more reliable electric grid means fewer blackouts and more consistent power—keeping the lights on when it matters most. A stronger, more connected grid also allows energy to flow across regions, making it easier for utilities to tap into cheaper energy sources like wind and solar, which in turn leads to lower energy costs for households and businesses alike. When the Missouri Public Service Commission approved the project in 2023, they projected that Grain Belt would save Missouri consumers $17 billion in lower electric bills.

For rural communities along the project route, the federal cancellation is more than a missed opportunity; it is a direct blow to local economies and consumers. Farmers and landowners were set to benefit from lease payments, while utilities and cooperatives could have tapped into cheaper, cleaner energy.

Expanding transmission and access to renewable energy are ways to provide reliable and  affordable power. Blocking these efforts invites unstable energy prices, threatens reliability, and drives up energy costs for consumers.