HR7609-119

What This Bill Does

The Rural Development Modernization Act updates several rural development statutes. It harmonizes population thresholds for rural water supply projects by adding projects serving areas described in the Consolidated Farm and Rural Development Act rural-area provisions, covering certain authorized rural water projects, and including projects authorized for Indian Tribes under the Omnibus Public Land Management Act.

The bill clarifies that rural broadband, electrification, business, and housing provisions cover communities in U.S. territories and possessions. It adds territorial references, adds the Commonwealth of the Northern Mariana Islands in one business program provision, replaces outdated Trust Territory of the Pacific Islands language with the Republic of the Marshall Islands, Federated States of Micronesia, and Republic of Palau under the Compacts of Free Association, and updates Housing Act territory and population references. It also makes technical and conforming amendments across rural electrification, rural development, housing, and reclamation statutes.

Finally, the bill requires the Secretary of Agriculture to reassess every year, and adjust if necessary, the numerical thresholds used to determine whether an area is rural under the amended laws. The Secretary must consider Census population and density trends, OMB metropolitan and non-metropolitan classifications, Rural-Urban Commuting Area codes, and regional differences.

Who Benefits and How

Rural water supply projects benefit because more authorized projects and tribal water projects can fit the rural water framework. Communities in U.S. territories and possessions benefit from clearer eligibility for rural broadband, electrification, business, and housing programs. The Republic of the Marshall Islands, Federated States of Micronesia, and Republic of Palau benefit from updated statutory references tied to the Compacts of Free Association. Rural communities near population thresholds benefit from annual reassessment that can adjust eligibility as population and density patterns change.

Who Bears the Burden and How

USDA Rural Development, Rural Utilities Service, Rural Housing Service, and Bureau of Reclamation staff must update program guidance, eligibility systems, forms, and statutory references. The Secretary of Agriculture must conduct annual threshold reassessments using Census, OMB, and Economic Research Service data. Existing applicants may face changed competition if newly clarified territorial, tribal, or threshold-eligible communities enter programs.

Key Provisions

• Expands rural water supply project coverage to additional rural areas, authorized rural water projects, and tribal water projects.
• Clarifies rural broadband and rural electrification eligibility for communities in U.S. territories and possessions.
• Updates rural development and housing statute references for the Northern Mariana Islands and freely associated states.
• Makes technical and conforming amendments across rural electrification, rural development, housing, and reclamation laws.
• Requires annual reassessment and adjustment of rural-area population thresholds using Census, OMB, and Rural-Urban Commuting Area data.
• Authorizes consideration of regional differences when adjusting rural-area thresholds.