Updated December 22, 2023
Farm Bill Primer: Rural Development Title
The rural development title of the farm bill reauthorizes,
Substance Abuse and Rural Health Care
amends, and creates programs administered by the U.S.
Congress prioritized funding for certain USDA Rural
Department of Agriculture (USDA) Rural Development
Development programs to address substance abuse in rural
agency. The rural development title also addresses
communities through FY2025. Congress required USDA to
emerging issues affecting rural communities.
set aside at least 20% of the funding for the Distance
Learning and Telemedicine Program for telemedicine
The Agriculture Improvement Act of 2018 (2018 farm bill;
projects that provide substance abuse treatment services.
P.L. 115-334) extended authorization for programs in the
Congress increased the authorization of appropriations from
rural development title through FY2023, meaning the
$75 million to $82 million annually through FY2024 for the
programs expired on September 30, 2023. Congress enacted
program. The Distance Learning and Telemedicine
a one-year extension of the 2018 farm bill through P.L.
Program provides grants to help rural communities gain the
118-22 (§102, Division B), which extended authorization
technology and training necessary to engage in
for programs through FY2024. As a result, the programs in
telemedicine and distance learning (7 U.S.C. §950aaa-2).
the rural development title are set to expire on September
30, 2024. This In Focus provides background information
Congress directed USDA to prioritize funding for
on the rural development title of the 2018 farm bill, selected
Community Facilities Program loans and grants for projects
provisions within it, and issues that Congress may consider
that develop facilities for substance abuse prevention,
as it drafts the next farm bill.
treatment, and recovery services. Congress also required
that applicants receiving prioritized funding employ staff
Background
that have the expertise and training to identify and treat
Since 1973, omnibus farm bills have included a rural
people dealing with substance abuse. The Community
development title. In the 2018 farm bill, the rural
Facilities Program provides grants, loans, and loan
development title is Title VI. The rural development title
guarantees to help rural communities build and renovate
impacts programs administered by USDA Rural
essential community facilities (7 U.S.C. §1926(a)).
Development through its agencies: the Rural Business-
Cooperative Service, Rural Housing Service, and Rural
Congress also required USDA to prioritize funding for the
Utilities Service.
Rural Health and Safety Education Competitive Grant
Program, a program administered by the USDA National
Most USDA Rural Development programs fall within the
Institute of Food and Agriculture. Congress directed USDA
rural development title of farm bills, including the rural
to prioritize funding for projects that provide substance
infrastructure programs, rural business development
abuse education, treatment, and prevention. The program
programs, and community facilities programs. However,
provides grants for community-based outreach education
single-family programs and multifamily programs
projects focused on health and safety (7 U.S.C. §2662(i)).
administered by the Rural Housing Service are not usually
included in the rural development title or other titles of the
Congress directed the Secretary of Agriculture not to make
farm bill. Energy programs administered by the Rural
any national reprioritizations for Community Facilities
Business-Cooperative Service usually fall within the energy
Program direct loans and grants, the Distance Learning and
title (Title IX in the 2018 farm bill). The Value-Added
Telemedicine Program, and the Rural Health and Safety
Producer Grant Program administered by the Rural
Education Competitive Grants Program through FY2025.
Business-Cooperative Service typically falls within the
However, Congress provided the Secretary with the
horticulture title (Title X of the 2018 farm bill).
authority to temporarily reprioritize USDA Rural
Development program loan and grant applications that
Congress provides discretionary funding for most of the
assist rural communities in responding to public health
programs in the rural development title through annual
disruptions (7 U.S.C. §2204b-2). Congress required the
appropriations acts. One exception is the Rural Economic
Secretary to consult with the appropriate public health
Development Loan and Grant Program. Congress provided
officials as needed and restricted reprioritization to a
$5 million of mandatory funding for the program for each
maximum of 20% of the program’s annual funding.
of FY2022 and FY2023 in the 2018 farm bill.
Congress also included a provision that allows rural
2018 Farm Bill Provisions
hospitals to use USDA Rural Development loans and loan
Congress made the following changes to USDA Rural
guarantees to refinance existing debt if it would (1) help
Development programs through the rural development title
retain access to health services in a rural community, (2)
in the 2018 farm bill, which were extended to FY2024 by
improve the financial position of the hospital, and (3) meet
the one-year extension.
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Farm Bill Primer: Rural Development Title
the financial feasibility and security requirements of USDA
households carry out well and septic system projects (7
Rural Development (7 U.S.C. §1990a).
U.S.C. §1926e).
Rural Broadband
Rural Business Development
Congress codified the Community Connect Grants
Congress restricted the amount of loans issued through the
Program. Congress authorized appropriations of $50
Intermediary Relending Program. Congress limited the
million annually for the program through FY2024. The
maximum amount of a loan made by an intermediary to the
program provides grants to deploy broadband to rural,
lesser of $400,000 or 50% of the amount that USDA loaned
economically challenged communities and their essential
to the intermediary. The program provides 1% interest rate
community facilities (7 U.S.C. §950bb-3).
loans to intermediaries that provide loans to eligible entities
for business facilities and community development projects
Congress added a grant component to the Rural Broadband
in rural areas (7 U.S.C. §1936b).
Program, which supports broadband deployment to rural
communities (7 U.S.C. §950bb). Prior to the 2018 farm bill,
Congress established the Rural Innovation Stronger
the program authority was limited to loans and loan
Economy Program to provide grants to create high-wage
guarantees. To date, Congress has provided funding for
jobs, help form new businesses, and support industry
loans and loan guarantees but not for grants. Congress
clusters (7 U.S.C. §2008w). Congress provided
directed USDA to prioritize funding for projects that serve
authorization of appropriations for the program of $10
rural communities that do not have broadband service of at
million annually through FY2024.
least 10 megabits per second download, 1 megabit per
second upload (10/1 Mbps). Congress raised the
Updating Rural Definitions
authorization of appropriations for the program from $25
Congress amended the definitions of a rural area included
million to $350 million annually through FY2024.
in statute used to determine eligible service areas in many
of the USDA Rural Development programs (7 U.S.C.
Congress established a new program to provide grants,
§1991(a)(13)). The definitions include a population
loans, and loan guarantees for middle mile broadband
maximum that rural areas cannot exceed. Congress directed
infrastructure projects in rural areas (7 U.S.C. §950bb-1).
USDA to exclude incarcerated populations and the first
Congress defined middle mile infrastructure as “any
1,500 people living in housing on military bases when
broadband infrastructure that does not connect directly to
calculating the population of an area, when determining
end-user locations (including anchor institutions) and may
whether an area is rural.
include interoffice transport, backhaul, internet
connectivity, data centers, or special access transport to
Considerations for Congress
rural areas” (7 U.S.C. §950bb-1). Congress provided
authorization of appropriations for the program of $10
ReConnect Program
million annually through FY2024.
Congress established the ReConnect Program as a pilot in
the Agriculture, Rural Development, Food and Drug
Congress also directed the Secretary to make available to
Administration, and Related Agencies Appropriations Act,
the public a searchable database on the Rural Utilities
2018 (P.L. 115-141) under the general statutory authority
Service website (7 U.S.C. §950cc). The database is to
provided to USDA through Title 7, Chapter 31, Sections
include information on applications submitted to USDA
901 et seq. of the U.S. Code. Congress might consider the
broadband programs that provide broadband to end users,
advantages and disadvantages of codifying the ReConnect
such as homes and businesses.
Program in the next farm bill.
Rural Water and Waste Disposal
Program Oversight
Congress increased the maximum loan amount for certain
Since 2018, Congress has allocated more than $4 billion to
projects under the Emergency and Imminent Community
the ReConnect Program and other USDA programs to
Water Assistance Program from $500,000 to $1 million per
deploy broadband to rural communities through annual
project. Congress provided authorization of appropriations
appropriations acts and supplemental funding bills such as
for the program of $50 million annually through FY2024.
P.L. 117-58. Congress might consider requiring USDA to
The Emergency and Imminent Community Water
publicly post annual reports on the progress of projects
Assistance Program provides grants to help communities
funded through USDA broadband programs.
prepare for or recover from an emergency that threatens the
availability of safe drinking water (7 U.S.C. §1926a).
Rural Health
A 2021 Government Accountability Office (GAO) report
Congress also reauthorized the Household Water Well
found that more than 100 rural hospitals closed from
Systems Program under a new name: the Rural
January 2013 to February 2020 (GAO-21-93). GAO found
Decentralized Water Systems Program. Congress provided
that the impacted residents have reduced access to health
the authority for intermediaries to offer subgrants, in
care services as a result of the closures. Congress might
addition to subloans, to eligible homeowners in rural areas.
consider whether and how much USDA Rural Development
Congress increased the authorization of appropriations for
programs support rural health care in the next farm bill.
the program from $5 million to $20 million annually
through FY2024. The program provides grants to
Lisa S. Benson, Specialist in Agricultural Policy
intermediaries to create revolving funds that help rural
IF12038
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Farm Bill Primer: Rural Development Title


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https://crsreports.congress.gov | IF12038 · VERSION 2 · UPDATED

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