Senate Appropriations Committee Issues Report on Appropriations for Agriculture, Rural Development, FDA, Related Agencies for FY 2024 – Title III (Part 7 of 12)
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(Continued from Part 6 of 12)
TITLE III
RURAL DEVELOPMENT PROGRAMS
Appropriations, 2023...
Budget estimate, 2024... 1,653,000
Committee recommendation... 1,620,000
COMMITTEE RECOMMENDATIONS
The Committee recommends an appropriation of
Persistent Poverty Areas.--The Committee supports targeted investments in impoverished areas, particularly in persistent poverty counties, and directs the Department to complete the report requested on this matter, which is now several years overdue. The report shall include both the historic data requested in the original directive as well as data for fiscal years 2023 and 2024.
SALARIES AND EXPENSES
(INCLUDING TRANSFERS OF FUNDS)
Table: [In thousands of dollars]
* * *
These funds are used to administer the loan and grant programs of RHS, RBS, and RUS, including reviewing applications, making and collecting loans, providing technical assistance and guidance to borrowers, and assisting in extending other Federal programs to people in rural areas.
Under the Federal Credit Reform Act of 1990 (Public Law 101-508), administrative costs associated with loan programs are appropriated to the program accounts. Appropriations to the salaries and expenses account will be for costs associated with grant programs.
COMMITTEE RECOMMENDATIONS
The Committee recommends
Cloud use.--The Committee remains interested in
Information Technology.--The Committee remains concerned about IT systems within
Staffing.--The Committee continues to direct the Department to provide a report that breaks out staffing by program, including current levels and end of year goals within 30 days of enactment of this act and monthly reports to the Committee with hiring updates thereafter.
Rural Partners Network.--The Committee provides
Rural Housing Service
The Rural Housing Service was established under the
RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT
(INCLUDING TRANSFERS OF FUNDS)
Appropriations, 2023 (budget authority)...
Budget estimate, 2024 (budget authority)... 813,849,000
Committee recommendation (budget authority)... 558,986,000
This fund was established in 1965 (Public Law 89-117) pursuant to section 517 of title V of the Housing Act of 1949 (Public Law 87-171). This fund may be used to insure or guarantee rural housing loans for single-family homes, rental and cooperative housing, farm labor housing, and rural housing sites. Rural housing loans are made to construct, improve, alter, repair, or replace dwellings and essential farm service buildings that are modest in size, design, and cost. Rental housing insured loans are made to individuals, corporations, associations, trusts, or partnerships to provide low-cost rental housing and related facilities in rural areas. These loans are repayable in terms up to 30 years. The Multi-family Housing Preservation and Revitalization Program [MPR] includes revitalization tools for maintenance of existing units. The Federal Credit Reform Act of 1990 (Public Law 101-508) established the
COMMITTEE RECOMMENDATIONS
The Committee recommends an appropriation of
The following table presents the loan subsidy levels as compared to the 2023 levels and the 2024 budget request:
RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT
Table: [In thousands of dollars]
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Fair Housing Protections.--The Committee supports efforts to strengthen the protections of the Fair Housing Act, but understand that more action is needed to ensure these protections reach every community. The Committee requests information on what resources are needed to ensure
Multifamily Housing Inspections.--The Committee directs the Department to better collaborate with HUD on Multifamily housing inspections, especially for properties financed by both
Relending Program.--The Committee provides
Single Family Housing Efficiency Concerns.--The Committee is concerned that there are unnecessary impediments facing individuals who utilize Single Family Housing Direct Loans and the Single Family Housing Guaranteed Loan Program to purchase homes or property in rural areas. The Committee awaits the report on the current appraisal requirements for these homes and whether these requirements are adopted from requirements used by the
RENTAL ASSISTANCE PROGRAM
Appropriations, 2023...
Budget estimate, 2024... 1,688,109,000
Committee recommendation... 1,608,000,000
Rental assistance is authorized under section 521(a)(2) of the Housing Act of 1949 (Public Law 87-171). The objective of the program is to reduce rents paid by low-income families living in RHS-financed rental projects and farm labor housing projects. Under this program, low-income tenants will contribute the higher of: (1) 30 percent of monthly adjusted income; (2) 10 percent of monthly income; or (3) designated housing payments from a welfare agency.
Payments from the fund are made to the project owner for the difference between the tenant's payment and the approved rental rate established for the unit.
The program is administered in tandem with RHS section 515 rural rental housing program and the farm labor loan and grant programs. Priority is given to existing projects for rental units occupied by over-burdened low-income families and projects experiencing financial difficulties beyond the control of the owner.
COMMITTEE RECOMMENDATIONS
The Committee recommends an appropriation of
Housing vouchers continue to be addressed in the Rural Housing Voucher Account.
Applicant Rental Experience.--The Committee understands that the Rural Development Civil Rights Office previously administered a testing program to examine the rental experience of applicants in rural housing services. The Committee requests information on why the testing program ended, what resources would be needed to restart the program, and how the program should be updated to ensure it captures the needs of communities protected by the Fair Housing Act, who are particularly at-risk of housing instability.
Decoupling of Rental Assistance.--The Committee accepts the Department's proposal to decouple the rental assistance program from Section 515 direct loans. This strategy should only be used when all other methods of preservation are exhausted. In implementing this policy, the Committee directs the Department to have strong stakeholder engagement and to provide the Committee with monthly updates on the implementation of this policy.
Rental Assistance Priority.--The Secretary is encouraged to prioritize multi-family housing properties acquired by means of a section 515 loan within the current fiscal year when determining current rental assistance needs.
RURAL HOUSING VOUCHER ACCOUNT
Appropriations, 2023...
Budget estimate, 2024...
Committee recommendation... 48,000,000
The Rural Housing Voucher Program was authorized under the Housing Act of 1949 (Public Law 81-171) to assist very low- income families and individuals who reside in rental housing in rural areas. Housing vouchers may be provided to residents of rental housing projects financed by section 515 loans that have been prepaid or paid off after
COMMITTEE RECOMMENDATIONS
The Committee recommends an appropriation of
MUTUAL AND SELF-HELP HOUSING GRANTS
Appropriations, 2023...
Budget estimate, 2024... 40,000,000
Committee recommendation... 32,000,000
The Mutual and Self-Help Housing Grants Program is authorized by title V of the Housing Act of 1949 (Public Law 81-171). Grants are made to local organizations to promote the development of mutual or self-help programs under which groups of usually six to 10 families build their own homes by mutually exchanging labor. Funds may be used to pay the cost of construction supervisors who work with families in the construction of their homes and for administrative expenses of the organizations providing the self-help assistance.
COMMITTEE RECOMMENDATIONS
The Committee recommends an appropriation of
RURAL HOUSING ASSISTANCE GRANTS
Appropriations, 2023...
Budget estimate, 2024... 70,000,000
Committee recommendation... 48,000,000
The Rural Housing Assistance Grants Program consolidates funding for rural housing grant programs. This consolidation of housing grant funding provides greater flexibility to tailor financial assistance to applicant needs.
Very Low-Income Housing Repair Grants.--The Very Low-Income Housing Repair Grants Program is authorized under section 504 of title V of the Housing Act of 1949 (Public Law 81-171). The rural housing repair grant program is carried out by making grants to very low-income families to conduct necessary repairs to their homes in order to make such dwellings safe and sanitary and to remove hazards to the health of the occupants, their families, or the community.
These grants may be made to cover the cost of improvements or additions, such as repairing roofs, providing toilet facilities, providing a convenient and sanitary water supply, supplying screens, repairing or providing structural supports, or making similar repairs, additions, or improvements, including all preliminary and installation costs in obtaining central water and sewer service. A grant can be made in combination with a section 504 very low-income housing repair loan.
No assistance can be extended to any one individual in the form of a loan, grant, or combined loans and grants in excess of
Supervisory and Technical Assistance Grants.--Supervisory and technical assistance grants are made to public and private nonprofit organizations for packaging loan applications for housing assistance under sections 502, 504, 514/516, 515, and 533 of the Housing Act of 1949 (Public Law 81-171). The assistance is directed to very low-income families in underserved areas where at least 20 percent of the population is below the poverty level and at least 10 percent or more of the population resides in substandard housing. In fiscal year 1994, a Homebuyer Education Program was implemented under this authority. This program provides low-income individuals and families with education and counseling on obtaining and/or maintaining occupancy of adequate housing and supervised credit assistance to become successful homeowners.
Compensation for Construction Defects.--Compensation for construction defects provides funds for grants to eligible section 502 borrowers to correct structural defects or to pay claims of owners arising from such defects on a newly constructed dwelling purchased with RHS financial assistance. Claims are not paid until provisions under the builder's warranty have been fully pursued. Requests for compensation for construction defects must be made by the owner of the property within 18 months after the date financial assistance was granted.
Rural Housing Preservation Grants.--Rural housing preservation grants (section 533) of the Housing and Urban- Rural Recovery Act of 1983 (Public Law 98-181) authorizes the Rural Housing Service to administer a program of home repair directed at low- and very low-income people.
COMMITTEE RECOMMENDATIONS
The Committee recommends an appropriation of
The following table compares the grant program levels recommended by the Committee to the fiscal year 2023 levels and the budget request:
RURAL HOUSING ASSISTANCE GRANTS
Table: [In thousands of dollars]
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Rural Community Facilities Program Account
Appropriations, 2023...
Budget estimate, 2024... 86,745,000
Committee recommendation... 253,134,000
Community facility loans were created by the Rural Development Act of 1972 (Public Law 92-419) to finance a variety of rural community facilities. Loans are made to organizations, including certain Indian Tribes and corporations not operated for profit and public and quasi-public agencies, to construct, enlarge, extend, or otherwise improve community facilities providing essential services to rural residents. Such facilities include those providing or supporting overall community development, such as fire and rescue services, healthcare, transportation, traffic control, and community, social, cultural, and recreational benefits. Loans are made for facilities which primarily serve rural residents of open country and rural towns and villages of not more than 20,000 people. Healthcare, fire and rescue facilities, and educational facilities are the priorities of the program and receive the majority of available funds.
The Community Facility Grant Program authorized in the Federal Agriculture Improvement and Reform Act of 1996 (Public Law 104-127) is used in conjunction with the existing direct and guaranteed loan programs for the development of community facilities such as hospitals, fire stations, and community centers. Grants are targeted to the lowest income communities. Communities that have lower population and income levels receive a higher cost-share contribution through these grants with a maximum contribution of 75 percent of the cost of developing the facility.
COMMITTEE RECOMMENDATIONS
The Committee recommends an appropriation of
The following table provides the Committee's recommendations, as compared to the fiscal year 2023 and budget request levels:
RURAL COMMUNITY FACILITIES PROGRAM ACCOUNT
Table: [In thousands of dollars]
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Congressionally Directed Spending [CDS].--The Committee has provided CDS for certain activities and locations under Rural Community Facilities Program. While the Committee has provided the funding, recipients of CDS are still required to apply for the funding. The Committee expects the agency to review the applications and fund projects in the same manner as in previous years.
Income-based Matches.--The Committee is concerned that the methodology used to calculate income-based matches for the Community Facilities Grant program and the Water and Wastewater Disposal Grant program inequitably considers State needs. The Committee directs the Department to conduct an analysis of this methodology and develop three alternative methodologies, and to brief the Committees no later than 60 days after enactment of the Act. If warranted, the Department is directed to make changes to its methodology based on this analysis.
Rural Community Development Initiative Grants.--The Committee encourages the Department to increase the maximum grant amount for this program from
Rural Business-Cooperative Service
The Rural Business-Cooperative Service was established by the
RURAL BUSINESS PROGRAM ACCOUNT
Appropriations, 2023...
Budget estimate, 2024... 103,600,000
Committee recommendation... 77,728,000
The Rural Business and Industry Loan Program was created by the Rural Development Act of 1972 (Public Law 92-419), and finances a variety of rural industrial development loans. Loans are made for rural industrialization and rural community facilities under Rural Development Act amendments to the
Rural business development grants were authorized by the Agricultural Act of 2014 (Public Law 113-79) and can be made to governmental and nonprofit entities and Indian Tribes. Up to 10 percent of appropriated funds may be used to identify and analyze business opportunities; identify, train, and provide technical assistance to existing or prospective rural entrepreneurs and managers; assist in the establishment of new rural businesses and the maintenance of existing businesses; conduct economic development planning, coordination, and leadership development; and establish centers for training, technology, and trade. The balance of appropriated funding may be used for projects that support the development of business enterprises that finance or facilitate the development of small and emerging private business enterprise; the establishment, expansion, and operation of rural distance learning networks; the development of rural learning programs; and the provision of technical assistance and training to rural communities for the purpose of improving passenger transportation.
COMMITTEE RECOMMENDATIONS
The Committee recommends an appropriation of
The following table provides the Committee's recommendations, as compared to the fiscal year 2023 and budget request levels:
RURAL BUSINESS PROGRAM ACCOUNT
Table: [In thousands of dollars]
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Federal Regional Commissions and Authorities.--The Committee recognizes that strong partnerships exist between RD and Federal Regional Commissions and Authorities. The Committee encourages RD to coordinate with the Regional Commissions to promote efficiency during the grant planning and review process. Additionally, the Committee encourages RD to ensure flexible processes are available for each
Infant Formula Manufacturing.--The Committee directs the Secretary to ensure that small infant formula manufacturing facilities located in rural areas are aware of their eligibility for the Business and Industry Guaranteed Loan Program.
Rural Business Program Account.--The Committee recommends
The Committee directs that of the
INTERMEDIARY RELENDING PROGRAM FUND ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
Table: [In thousands of dollars]
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The Rural Development Intermediary Relending Loan program was originally authorized by the Economic Opportunity Act of 1964 (Public Law 88-452). The making of rural development loans by
Loans are made to intermediary borrowers (small investment groups) who in turn will reloan the funds to rural businesses, community development corporations, private nonprofit organizations, public agencies, et cetera, for the purpose of improving business, industry, community facilities, employment opportunities, and diversification of the economy in rural areas.
The Federal Credit Reform Act of 1990 (Public Law 74-605) established the program account. Appropriations to this account will be used to cover the lifetime subsidy costs associated with the direct loans obligated in 2024, as well as administrative expenses.
COMMITTEE RECOMMENDATIONS
The Committee recommends an appropriation of
RURAL ECONOMIC DEVELOPMENT LOANS PROGRAM ACCOUNT
The Rural Economic Development Loans program was established by the Reconciliation Act of
COMMITTEE RECOMMENDATION
The Committee recommends a loan program level of
RURAL ECONOMIC DEVELOPMENT LOANS PROGRAM ACCOUNT
Table: [In thousands of dollars]
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RURAL COOPERATIVE DEVELOPMENT GRANTS
Appropriations, 2023...
Budget estimate, 2024... 29,800,000
Committee recommendation... 28,300,000
Rural cooperative development grants are authorized under section 310B(e) of the
Cooperative research agreements are authorized by 7 U.S.C. 2204b. The funds are used for cooperative research agreements, primarily with colleges and universities, on critical operational, organizational, and structural issues facing cooperatives.
Cooperative agreements are authorized under 7 U.S.C. 2201 to any qualified State departments of agriculture, universities, and other State entities to conduct research that will strengthen and enhance the operations of agricultural marketing cooperatives in rural areas.
The Appropriate Technology Transfer for Rural Areas [ATTRA] program was first authorized by the Food Security Act of 1985 (Public Law 99-198). The program provides information and technical assistance to agricultural producers to adopt sustainable agricultural practices that are environmentally friendly and lower production costs.
COMMITTEE RECOMMENDATIONS
The following table provides the Committee's recommendation as compared to the fiscal year 2023 and budget request levels:
Table: [In thousands of dollars]
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The Committee recommends an appropriation of
Of the funds recommended,
The Committee includes bill language directing that not more than
Agriculture Innovation Centers.--The Committee recommends
Value-Added Producer Grants.--The Committee directs that Value-Added Producer Grants be prioritized to support the production of value-added agricultural products, including dairy, with significant potential to expand production and processing in
RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM
Appropriations, 2023...
Budget estimate, 2024... 8,250,000
Committee recommendation... 6,000,000
COMMITTEE RECOMMENDATIONS
The Committee recommends an appropriation of
RURAL ENERGY FOR AMERICA PROGRAM
Appropriations, 2023...
Budget estimate, 2024... 30,000,000
Committee recommendation...
The Rural Energy for America Program is authorized under section 9007 of the Farm Security and Rural Investment Act of 2002 (Public Law 107-171). This program may fund energy audits, direct loans, loan guarantees, and grants to farmers, ranchers, and small rural businesses for the purchase of renewable energy systems and for energy efficiency improvements.
COMMITTEE RECOMMENDATIONS
The Committee does not recommend a discretionary appropriation for the Rural Energy for America Program.
The following table provides the Committee's recommendation as compared to the fiscal year 2023 and budget request levels:
RURAL ENERGY FOR AMERICA PROGRAM
Table: [In thousands of dollars]
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Rural Energy for America Program [REAP].--The Committee encourages the Department to focus a portion of funding on underserved renewable technologies.
The Committee also acknowledges the potential of the Rural Energy for America Program in helping rural agricultural producers and small businesses diversify on-farm income and promote energy efficiency through renewable energy production. However, the Committee recognizes financial barriers to program utilization by small agricultural producers and small businesses due to matching fund requirements and reimbursement- based grant funding. As such, the Committee encourages the Department to make REAP grants more accessible to socially disadvantaged groups and low income applicants to ensure the program's feasibility and accessibility for applicants of all demographics.
HEALTHY FOOD FINANCING INITIATIVE
Appropriations, 2023...
Budget estimate, 2024... 5,000,000
Committee recommendation... 1,000,000
The Healthy Food Financing Initiative is authorized under section 4206 of the Agricultural Act of 2014. This program provides financial and technical assistance to regional, State and local partnerships, and helps fund projects to improve access to fresh, healthy foods in underserved rural areas.
COMMITTEE RECOMMENDATIONS
The Committee recommends an appropriation of
Rural Utilities Service
The Rural Utilities Service was established under the
RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT
(INCLUDING TRANSFERS OF FUNDS)
Appropriations, 2023...
Budget estimate, 2024... 882,295,000
Committee recommendation... 671,560,000
The water and waste disposal program is authorized by sections 306, 306A, 309A, 306C, 306D, 306E, and 310B of the
The solid waste grant program is authorized under section 310B(b) of the
COMMITTEE RECOMMENDATIONS
The Committee recommends an appropriation of
The Committee recommends
The following table provides the Committee's recommendations, as compared to the fiscal year 2023 and budget request levels:
RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT
Table: [In thousands of dollars]
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Technical Assistance.--The Committee provides
RURAL ELECTRIFICATION AND TELECOMMUNICATIONS LOANS PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
The Rural Electrification Act of 1936 (Public Law 74-605) provides the statutory authority for the electric and telecommunications programs.
The Federal Credit Reform Act of 1990 (Public Law 101-508) established the program account. An appropriation to this account will be used to cover the lifetime subsidy costs associated with the direct loans obligated and loan guarantees committed in fiscal year 2024, as well as administrative expenses.
COMMITTEE RECOMMENDATIONS
The following table reflects the Committee's recommendation for the
RURAL ELECTRIFICATION AND TELECOMMUNICATIONS LOANS PROGRAM ACCOUNT
Table: [In thousands of dollars]
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DISTANCE LEARNING, TELEMEDICINE AND BROADBAND PROGRAM
Appropriations, 2023...
Budget estimate, 2024... 476,337,000
Committee recommendation... 195,721,000
The Distance Learning, Telemedicine, and Broadband Program is authorized by the Food, Agriculture, Conservation and Trade Act of 1990 (Public Law 101-624), as amended by the Federal Agriculture Improvement and Reform Act of 1996 (Public Law 104- 127). This program provides incentives to improve the quality of phone services, provide access to advanced telecommunications services and computer networks, and improve rural opportunities.
This program provides the facilities and equipment to link rural education and medical facilities with more urban centers and other facilities, providing rural residents access to better healthcare through technology and increasing educational opportunities for rural students. These funds are available for loans and grants.
COMMITTEE RECOMMENDATIONS
The Committee recommends an appropriation of
The following table reflects the Committee's recommendation for the Distance Learning, Telemedicine, and Broadband Program, as compared to fiscal year 2023 and the budget request levels:
DISTANCE LEARNING, TELEMEDICINE, AND BROADBAND PROGRAM
Table: [In thousands of dollars]
DISTANCE LEARNING, TELEMEDICINE AND BROADBAND PROGRAM
Appropriations, 2023...
Budget estimate, 2024... 476,337,000
Committee recommendation... 195,721,000
The Distance Learning, Telemedicine, and Broadband Program is authorized by the Food, Agriculture, Conservation and Trade Act of 1990 (Public Law 101-624), as amended by the Federal Agriculture Improvement and Reform Act of 1996 (Public Law 104- 127). This program provides incentives to improve the quality of phone services, provide access to advanced telecommunications services and computer networks, and improve rural opportunities.
This program provides the facilities and equipment to link rural education and medical facilities with more urban centers and other facilities, providing rural residents access to better healthcare through technology and increasing educational opportunities for rural students. These funds are available for loans and grants.
COMMITTEE RECOMMENDATIONS
The Committee recommends an appropriation of
The following table reflects the Committee's recommendation for the Distance Learning, Telemedicine, and Broadband Program, as compared to fiscal year 2023 and the budget request levels:
DISTANCE LEARNING, TELEMEDICINE, AND BROADBAND PROGRAM
The Committee provides
Broadband Interagency Agreement.--The Committee directs the Department to continue the interagency agreement between the
Congressionally Directed Spending [CDS].--The Committee has provided CDS for certain activities and locations under Distance Learning, Telemedicine, and Broadband Program. While the Committee has provided the funding, recipients of CDS are still required to apply for the funding. The Committee expects the agency to review the applications and fund projects in the same manner as in previous years.
ReConnect.--The Committee provides
To avoid waste, funding should be given only to applicants that can and will follow through with their commitments by prioritizing applications from applicants that have demonstrated the technical and financial experience required to construct and operate broadband networks. To incentivize participation, applications should be as streamlined as possible, including allowing all providers to offer proof of financial capability through bond ratings instead of submitting financial documentation, and to offer collateral for loans as well as security for performance under grants using alternate forms of security instead of providing a first lien on assets. Applications should only require the data strictly necessary to evaluate the application and post-award burdens should be minimized.
In addition, while the pilot is intended to be technology neutral, it is critical that federal broadband investments support projects that are both scalable and adequate for both current and future technological requirement and consumer needs. In carrying out the Reconnect program, the Committee directs
The Committee also remains concerned that States and territories outside the contiguous
Satellite Service.--The Committee still awaits the report on the feasibility and cost of utilizing satellite Internet service under its existing programs. The report must cover a cost comparison of fiber versus satellite costs with a focus on reaching rural areas. Additionally,
(Continues with Part 8 of 12)
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The report is posted at: https://www.congress.gov/congressional-report/118th-congress/senate-report/44/1?s=1&r=48
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