HR6041-119

What This Bill Does

The Rural Partnership and Prosperity Act creates a new multiyear rural partnership grant program administered through USDA Rural Development. Grants last two to five years and support partnerships coordinating federal, nonprofit, and for-profit investment in rural areas. State rural development offices normally review and select applications, while the national office reviews Tribal allocations and, when annual appropriations are $300 million or less, runs a national competitive process that prioritizes areas with higher nonmetropolitan poverty and lower population. Funding is allocated to States under a poverty-and-population formula, capped at 5 percent per State, and to Indian Tribes with a minimum Tribal allocation of 5 percent of appropriated funds. Eligible partnerships must serve rural areas and include at least two public, nonprofit, Tribal, philanthropic, or private partners. The bill also creates national-level technical assistance grants of up to five years for qualified nonprofit or private intermediaries, including colleges with community development or extension capacity, to help rural organizations with grant management, financial systems, housing, community economic development, placemaking, consultants, public-private partnerships, predevelopment, and grant writing. Technical-assistance grantees generally must provide a 30 percent nonfederal match unless USDA waives it, and USDA may retain up to 2 percent for administration. Finally, the bill renames the Council on Rural Community Innovation and Economic Development as the Rural Partners Network, adds FDIC, Appalachian Regional Commission, CFPB, SSA, Delta Regional Authority, Denali Commission, Northern Border Regional Commission, and Southeast Crescent Regional Commission, and directs the Network to reduce administrative burdens and improve access to federal rural assistance.

Who Benefits and How

Rural communities benefit from multiyear partnership grants that can coordinate public, nonprofit, philanthropic, and private investment around local economic-development needs. Indian Tribes benefit from a minimum 5 percent allocation of appropriated rural partnership funds and national-office review of Tribal grant awards. High-poverty, low-population nonmetropolitan areas benefit because grant competitions and formulas prioritize those conditions. Nonprofit and intermediary organizations benefit from technical-assistance grants for grant writing, financial systems, predevelopment, placemaking, and public-private partnership support. Rural local governments and community organizations benefit if the Rural Partners Network reduces duplicative applications and makes federal assistance easier to navigate.

Who Bears the Burden and How

USDA Rural Development offices must design formulas, review applications, select awards, manage reallocations, process Tribal allocations, and administer both grant programs. State and Tribal grantees must form eligible partnerships, use funds within program rules, and risk reallocation if allocated funds go unused. Technical-assistance grantees must provide a 30 percent nonfederal match unless USDA grants a waiver and must avoid prohibited uses such as for-profit staffing, real estate, equipment, non-rural activities, or research and development. USDA must justify match waivers to House and Senate agriculture committees. Federal agencies added to the Rural Partners Network must participate in coordination work intended to simplify rural assistance and reduce administrative burdens. Federal taxpayers fund the grant programs, technical assistance, and USDA administration.

Key Provisions

• Establishes multiyear rural partnership grants for coordinating federal, nonprofit, and private investment in rural areas.
• Requires State rural development offices and, for Tribal allocations or small appropriations years, the national office to review and select awards.
• Requires formula allocations based on nonmetropolitan poverty and population, with a 5 percent State cap and at least 5 percent reserved for Indian Tribes.
• Establishes rural partnership technical-assistance grants for qualified intermediaries, including institutions of higher education with community development or extension capacity.
• Requires a 30 percent nonfederal match for technical-assistance grants unless USDA waives the match and reports the justification.
• Renames and expands the Rural Partners Network to reduce federal-assistance burdens for rural communities.