HR6041-119

3. Rural partnership program grants Subject to the availability of appropriations under subsection (j), the Secretary shall establish a program to make multiyear grant awards to coordinate Federal, nonprofit, and for-profit investment in rural areas. The term of a grant awarded under subsection (a) shall be not less than 2 years and not more than 5 years. Except as provided in paragraphs (3) and (4), the State offices of the rural development mission area shall be responsible for reviewing applications for grant awards under subsection (a) and selecting eligible applicants described in subsection (d) for those grant awards. Except as provided in paragraph (4), in the case of grants under subsection (a) allocated to Indian Tribes under subsection (c)(1)(B), the national office of the rural development mission area shall be responsible for reviewing applications for grant awards under subsection (a) and selecting eligible applicants described in subsection (d) for those grant awards. If the amount appropriated under subsection (j) for a fiscal year is less than or equal to $300,000,000, the national office of the rural development mission area shall be responsible for reviewing applications for grant awards under subsection (a) and selecting eligible applicants described in subsection (d) for those grant awards— on a competitive basis; and by giving priority to areas that have higher nonmetropolitan poverty levels and lower population levels, while ensuring that grants under this section are awarded in diverse geographic regions of the United States. Except as provided in subsection (b)(4), the Secretary shall allocate funding for grants under subsection (a)— for each State based on a formula determined by the Secretary in accordance with paragraph (2); and for Indian Tribes in such amounts as the Secretary determines to be appropriate, subject to the condition that the total amount allocated to Indian Tribes under this subparagraph shall not be less than 5 percent of the amount appropriated under subsection (j), with Indian Tribes located in areas that have higher poverty levels and lower populations receiving higher levels of funding. The Secretary shall develop a graduated scale to allocate funding for States under paragraph (1)(A) based on the nonmetropolitan poverty and population levels in each State. The amount allocated to any State under subparagraph (A) shall not exceed 5 percent of the amount appropriated under subsection (j). Notwithstanding paragraphs (1)(A) and (2)(A), the Secretary shall ensure that each State is allocated an amount for grants under this subsection that is sufficient to fulfill the purposes of the program established under this section, as determined by the Secretary. If a State or Indian Tribe does not use funds allocated to the State or Indian Tribe under this subsection, the Secretary may reallocate the unused funds to 1 or more other States or Indian Tribes, each of which has used all of the funding allocated to the State or Indian Tribe under this subsection. To be eligible to receive a grant under subsection (a), an applicant shall— propose to serve a rural area; be composed of a partnership of 2 or more of— an instrumentality or political subdivision of a State, such as a municipality, county, district, or authority; a nonprofit corporation or association with significant ties to the rural area described in paragraph (1), including through— association with, or control by, 1 or more public bodies in the rural area; broadly based ownership and control by members of the rural area; or a substantial public funding contribution to the rural area through taxes, revenue bonds, other local government sources, or substantial voluntary community funding; a cooperative with significant ties to the rural area described in paragraph (1); a for-profit entity with a significant presence in the rural area described in paragraph (1); an institution of higher education— with a significant contribution to or presence in the rural area described in paragraph (1); and that includes representatives who are members of the rural area; and an Indian Tribe— in a rural area described in paragraph (1); and with demonstrated support from the Tribal council or duly elected Tribal executive of the appropriate Tribal government; and demonstrate cooperation among the members of the partnership described in paragraph (2) necessary to complete comprehensive, asset-based rural development through eligible activities described in subsection (e). An eligible applicant described in subsection (d) that receives a grant under subsection (a) may use the grant funds in rural areas— to coordinate Federal, State, regional, or Tribal initiatives to reduce duplicative efforts with respect to Federal investments; to leverage non-Federal financial and technical resources; to complete comprehensive predevelopment activities and planning; to create public-private partnerships and attract private investment; to support eligible operational activities, including staffing, of the eligible applicants, except that a for-profit entity may not use the grant funds for the purpose described in this paragraph; to provide capital to existing or new projects, subject to the condition that not more than 50 percent of the grant funds may be used for that purpose; to support regional projects and initiatives; to address economic recovery from emergencies and natural or man-made disasters; and to develop strategic community investment plans described in section 379H(d) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008v(d)). An eligible applicant described in subsection (d) that receives a grant under subsection (a) may not use the grant funds— to fund operational activities, including staffing, at a for-profit institution; to purchase or lease real property; or to support a non-rural area. In awarding grants under subsection (b), the Secretary shall give priority to an eligible applicant described in subsection (d) that proposes to serve— a rural area with a significant change in population; a rural area with significant workforce changes or changes in major employers; an economically distressed rural area, as determined by the Secretary; a rural area that has historically received minimal Federal funding, as determined by the Secretary; or a rural area for the purpose of job retention and economic stabilization, as determined by the Secretary. Subject to paragraph (2), an eligible applicant described in subsection (d) that receives a grant under subsection (a) shall provide non-Federal matching funds in the form of cash or an in-kind contribution in an amount that is not less than 25 percent of the amount of the grant. The Secretary may waive the requirement under paragraph (1) based on the demonstrated need of the eligible applicant or the population served by the eligible applicant, as determined by the Secretary, including— an eligible applicant serving an area with a higher nonmetropolitan poverty level; an eligible applicant serving a Tribal population; and an eligible applicant composed of a partnership that includes an entity described in subsection (d)(2)(A). The Secretary shall provide to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a justification for each waiver provided under subparagraph (A). Non-Federal matching funds under paragraph (1) may be provided by any member of the applicable partnership described in subsection (d)(2). The Secretary shall carry out this section in coordination with the Rural Partners Network established by section 6306 of the Agriculture Improvement Act of 2018 (7 U.S.C. 2204b–3). There are authorized to be appropriated to the Secretary such sums as are necessary to carry out this section. The Secretary may retain not more than 2 percent of the amounts made available to carry out this section for administration of the program established under this section.