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119-hr-7609119th CongressWALLET

Rural Development Modernization Act

Sponsored By: Representative Costa, Jim [D-CA-21]

Introduced

Summary

Raises the rural population cutoff to 25,000 for federal and USDA program eligibility. This bill would harmonize eligibility rules across multiple statutes, extend coverage to U.S. territories and named Compact of Free Association states, and require the Secretary of Agriculture to reassess the threshold annually.

Show full summary
  • Rural residents and small towns: More communities could qualify for USDA funding and services for broadband, telemedicine, distance learning, rural housing, water and wastewater systems, and community facilities. This expands where grants and loans can be used.
  • Territories and Compact nations: The bill explicitly extends program eligibility to U.S. territories and to named freely associated states such as the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau.
  • Program rules and counting rules: It standardizes language across several laws, removes some lower population cutoffs, updates authorities for water and utility projects, and excludes incarcerated and military-base populations when determining rural status.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

Broadband allocation formulas scaled up

If enacted, the bill would replace every numeric "2,500" with "25,000" in certain Rural Electrification Act broadband allocation formulas. That change would alter how funds are distributed under those broadband programs and could increase how much money some places get. The change would take effect upon enactment.

More places qualify as rural

If enacted, this bill would treat an area as rural if its population is 25,000 or less. When counting population, the Secretary would have to subtract the institutional and military groups listed in subparagraphs (F) and (G) of section 343(a)(13). The Agriculture Secretary would also have to reassess the numeric rural threshold every year using Census counts, OMB metro classifications, and RUCA codes. These changes would take effect upon enactment.

More rural water projects eligible

If enacted, the bill would expand which rural water projects can get Reclamation support. New eligible projects would include those serving areas described in subparagraphs (F) or (G) of section 343(a)(13), projects authorized under section 1110 of division FF of the Consolidated Appropriations Act, 2021 or other federal statutes, and projects for Indian Tribes under the 2009 Omnibus Act. The change would take effect upon enactment.

Territories added to rural programs

If enacted, the bill would explicitly add U.S. territories and certain Pacific islands to the list of places covered by multiple rural programs. Examples include adding territories to Rural Electrification Act programs, Community Connect Grants, and Rural Cooperative Development Grants, and naming the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau. The change would take effect upon enactment.

Sponsors & CoSponsors

Sponsor

Costa, Jim [D-CA-21]

CA • D

Cosponsors

  • Rep. Crawford, Eric A. "Rick" [R-AR-1]

    AR • R

    Sponsored 2/20/2026

  • Rep. Riley, Josh [D-NY-19]

    NY • D

    Sponsored 2/20/2026

  • Rep. Valadao, David G. [R-CA-22]

    CA • R

    Sponsored 2/20/2026

  • Rep. Davis, Donald G. [D-NC-1]

    NC • D

    Sponsored 7/21/2026

Roll Call Votes

No roll call votes available for this bill.

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