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An Overview of USDA Rural Development Programs (CRS Report for Congress)

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Release Date Revised Feb. 10, 2016
Report Number RL31837
Report Type Report
Authors Tadlock Cowan, Analyst in Natural Resources and Rural Development
Source Agency Congressional Research Service
Older Revisions
  • Premium   Revised Feb. 18, 2014 (43 pages, $24.95) add
  • Premium   Revised May 3, 2010 (41 pages, $24.95) add
  • Premium   Revised Sept. 19, 2008 (37 pages, $24.95) add
  • Premium   Revised Jan. 18, 2007 (35 pages, $24.95) add
  • Premium   Revised June 22, 2006 (35 pages, $24.95) add
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Summary:

More than 88 programs administered by 16 different federal agencies target rural economic development. The United States Department of Agriculture (USDA) administers the greatest number of rural development programs and has the highest average of program funds going directly to rural counties (approximately 50%). The Rural Development Policy Act of 1980 also designated USDA as the lead federal agency for rural development. The Federal Crop Insurance Reform and Department of Agricultural Reorganization Act of 1994 created the Office of the Under Secretary for Rural Development and consolidated the rural development portfolio into four principal agencies responsible for USDA's mission area: the Rural Housing Service, the Rural Business-Cooperative Service, the Rural Utilities Service, and the Office of Community Development. The Agricultural Act of 2014 (P.L. 113-79), the most recent farm bill, was enacted on February 7, 2014. Among other changes, the law consolidates several business loan and grant programs into a single business support platform. The law allows prioritization of rural development projects that support strategic economic and community development. The new law provides $150 million in mandatory spending for backlogged rural development loans and grants and $63 million in mandatory spending for the Value-Added Product Grants program. Most existing programs authorized by the Consolidated Farm and Rural Development Act and the Rural Electrification Act were reauthorized. The Access to Broadband Telecommunication Services in Rural Areas Program was reauthorized and establishes new procedures to compare applications and set funding priorities. Additionally, a new Gigabit Network Pilot Program for high-speed broadband service was authorized at $10 million for each fiscal year FY2014-FY2018. The bill also authorizes a new Rural Energy Savings Program to fund loans to qualified consumers to implement energy efficiency measures. A new provision directs USDA to begin collecting data on the economic activities it funds to assess the short- and long-term viability of award recipients. This report provides an overview of the various programs administered by USDA Rural Development's mission agencies, their authorizing legislation, program objectives, eligibility criteria, and FY2005-FY2016 funding for each program. The report is updated as new USDA Rural Development programs are implemented or amended.