Senate Appropriations Committee Issues Report on Appropriations for Agriculture, Rural Development, FDA, Related Agencies for FY 2024 - Title III (Part 7 of 12) - Insurance News | InsuranceNewsNet

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September 2, 2023 Newswires
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Senate Appropriations Committee Issues Report on Appropriations for Agriculture, Rural Development, FDA, Related Agencies for FY 2024 – Title III (Part 7 of 12)

Targeted News Service

WASHINGTON, Sept. 2 -- The Senate Appropriations Committee issued a report (S.Rpt. 118-44) in explanation of the accompanying bill (S. 2131) making appropriations for the Agriculture, Rural Development, Food And Drug Administration and related agencies for the fiscal year ending Sept. 30, 2024. The report was advanced by Sen. Martin Heinrich, D-New Mexico, June 22, 2023.

* * *

(Continued from Part 6 of 12)

TITLE III

RURAL DEVELOPMENT PROGRAMS

The Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994 (Public Law 103-354) abolished the Farmers Home Administration, Rural Development Administration, and Rural Electrification Administration and replaced those agencies with the Rural Housing and Community Development Service, (currently, the Rural Housing Service), Rural Business and Cooperative Development Service (currently, the Rural Business-Cooperative Service), and Rural Utilities Service and placed them under the oversight of the Under Secretary for Rural Economic and Community Development, (currently, Rural Development [RD]). These agencies deliver a variety of programs through a network of State and field offices.

Office of the Under Secretary for Rural Development

Appropriations, 2023... $1,620,000

Budget estimate, 2024... 1,653,000

Committee recommendation... 1,620,000

The Office of the Under Secretary for Rural Development provides direction and coordination in carrying out laws with respect to the Department's rural economic and community development activities. The Office has oversight and management responsibilities for the Rural Housing Service [RHS], Rural Business-Cooperative Service [RBS], and the Rural Utilities Service [RUS].

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $1,620,000 for the Office of the Under Secretary for Rural Development.

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.

Rural Development

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 $801,079,000 for salaries and expenses of Rural Development, including a direct appropriation of $351,087,000.

Cloud use.--The Committee remains interested in Rural Development's efforts to modernize the agency's information technology systems in an effort to provide better assistance to the communities it serves. In compliance with the Federal Government's Cloud Smart strategy, RD is directed to provide a report to the House and Senate Committees on Appropriations no later than 180 days after enactment of this act with an assessment of the time, effort and cost of moving off on-prem and transitioning and modernizing in the cloud.

Information Technology.--The Committee remains concerned about IT systems within Rural Development and directs the Department to continue to update or retire legacy systems. Furthermore, the Committee still awaits the report listing the programs that still require paper applications and the estimated cost to develop online portals, and continues to direct the Department to submit monthly updates on making improvements to the systems listed above and any other IT development.

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 $3,000,000 for the Rural Partners Network.

Rural Housing Service

The Rural Housing Service was established under the Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994 (Public Law 103-354).

RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT

(INCLUDING TRANSFERS OF FUNDS)

Appropriations, 2023 (budget authority)... $527,357,000

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 Rural Housing Insurance Fund [RHIF] program account. Appropriations 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 for administrative expenses.

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $146,732,000, excluding the transfer of funds, for the Rural Housing Insurance Fund Program Account.

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]

* * *

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 Rural Development has the resources to collaborate with the Department of Housing and Urban Development in order to conduct outreach and raise awareness of the rights and protections under the Fair Housing Act for all protected classes.

Multifamily Housing Inspections.--The Committee directs the Department to better collaborate with HUD on Multifamily housing inspections, especially for properties financed by both USDA and HUD, and to provide clarifying guidance on the acceptability of either a USDA or HUD inspection to avoid duplication.

Relending Program.--The Committee provides $7,500,000 for the Section 502 Direct Tribal Relending Pilot, and to the extent practicable, encourages the Rural Housing Service to expand the current pilot to the Southwest and to Native CDFIs that are partnered with Regional Housing Authorities which receive block grant funds under Public Law 104-330. The Committee recognizes that there is a tremendous need for safe and affordable housing in American Indian and Alaska Native communities, and Native American CDFIs have deep ties to the local communities they serve, and are better equipped to more effectively reach potential homebuyers.

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 Department of Housing and Urban Development or the Department of Veterans Affairs.

RENTAL ASSISTANCE PROGRAM

Appropriations, 2023... $1,487,926,000

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 $1,608,000,000 for the Rental Assistance Program.

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... $48,000,000

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 September 30, 2005. Voucher amounts reflect the difference between comparable market rents and tenant-paid rent prior to loan pre-payment. Vouchers allow tenants to remain in existing projects or move to other rental housing.

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $48,000,000 for the Rural Housing Voucher Program.

MUTUAL AND SELF-HELP HOUSING GRANTS

Appropriations, 2023... $32,000,000

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 $32,000,000 for Mutual and Self-Help Housing Grants.

RURAL HOUSING ASSISTANCE GRANTS

Appropriations, 2023... $48,000,000

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 $7,500,000, and grant assistance is limited to persons or families headed by persons who are 62 years of age or older.

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 $48,000,000 for the Rural Housing Assistance Grants Program.

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]

* * *

Rural Community Facilities Program Account

Appropriations, 2023... $341,490,000

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 $253,134,000 for the Rural Community Facilities Program Account.

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]

* * *

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 $250,000 to $500,000 and to allow an advance of 25 percent of grant funds prior to a match being supplied.

Rural Business-Cooperative Service

The Rural Business-Cooperative Service was established by the Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994 (Public Law 103-354), dated October 13, 1994. Its programs were previously administered by the Rural Development Administration, the Rural Electrification Administration, and the Agricultural Cooperative Service.

RURAL BUSINESS PROGRAM ACCOUNT

Appropriations, 2023... $86,520,000

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 Consolidated Farm and Rural Development Act (7 U.S.C. 1932 et seq.) authorities. Business and industrial loans are made to public, private, or cooperative organizations organized for profit; to certain Indian tribes; or to individuals for the purpose of improving, developing, or financing business, industry, and employment or improving the economic and environmental climate in rural areas. Such purposes include financing business and industrial acquisition, construction, enlargement, repair or modernization; financing the purchase and development of land, easements, rights-of-way, buildings, and payment of startup costs; and supplying working capital.

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 $77,728,000 for the Rural Business Program Account.

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]

* * *

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 Regional Commission as appropriate.

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 $500,000 for transportation technical assistance.

The Committee directs that of the $400,000 recommended for grants to benefit federally Recognized Native American Tribes, $250,000 shall be used to implement an American Indian and Alaska Native passenger transportation development and assistance initiative. Additionally, the Committee encourages the Department to improve information sharing about Rural Development's business support programs with local small business advisory organizations.

INTERMEDIARY RELENDING PROGRAM FUND ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

Table: [In thousands of dollars]

* * *

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 USDA was reauthorized by the Agricultural Act of 2014 (Public Law 113-79).

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 $10,201,000 for the Intermediary Relending Program Fund.

RURAL ECONOMIC DEVELOPMENT LOANS PROGRAM ACCOUNT

The Rural Economic Development Loans program was established by the Reconciliation Act of December 1987 (Public Law 100-203), which amended the Rural Electrification Act of 1936 (7 U.S.C. 901), by establishing a new section 313. This section of the Rural Electrification Act (7 U.S.C. 901) established a cushion of credit payment program and created the rural economic development subaccount. The Administrator of RUS is authorized under the act to utilize funds in this program to provide zero interest loans to electric and telecommunications borrowers for the purpose of promoting rural economic development and job creation projects, including funding for feasibility studies, startup costs, and other reasonable expenses for the purpose of fostering rural economic development.

COMMITTEE RECOMMENDATION

The Committee recommends a loan program level of $75,000,000 and $15,000,000 in grants to be funded from earnings on the Cushion of Credit and fees on guaranteed underwriting loans made pursuant to section 313A of the Rural Electrification Act of 1936 (7 U.S.C. 901).

RURAL ECONOMIC DEVELOPMENT LOANS PROGRAM ACCOUNT

Table: [In thousands of dollars]

* * *

RURAL COOPERATIVE DEVELOPMENT GRANTS

Appropriations, 2023... $28,300,000

Budget estimate, 2024... 29,800,000

Committee recommendation... 28,300,000

Rural cooperative development grants are authorized under section 310B(e) of the Consolidated Farm and Rural Development Act (Public Law 113-79), as amended. Grants are made to fund the establishment and operation of centers for rural cooperative development with the primary purpose of improving economic conditions in rural areas. Grants may be made to nonprofit institutions or institutions of higher education. Grants may be used to pay up to 75 percent of the cost of the project and associated administrative costs. The applicant must contribute at least 25 percent from non-Federal sources, except 1994 institutions, which only need to provide five percent. Grants are competitive and are awarded based on specific selection criteria.

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]

* * *

The Committee recommends an appropriation of $28,300,000 for Rural Cooperative Development Grants.

Of the funds recommended, $3,500,000 is for the Appropriate Technology Transfer for Rural Areas program.

The Committee includes bill language directing that not more than $3,000,000 be made available to cooperatives or associations of cooperatives whose primary focus is to provide assistance to small, minority producers.

Agriculture Innovation Centers.--The Committee recommends $3,000,000 for Agriculture Innovation Center funding, as authorized in section 6402 of Public Law 107-171, to be available as grants to States authorized to host, and that have previously hosted, a USDA Agriculture Innovation Center and where the State continues to demonstrate support and provide non-Federal grant funding to producers developing, producing, and marketing value-added agricultural and food products. Prior year or current grant awardees shall be eligible for these funds.

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 the United States.

RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM

Appropriations, 2023... $6,000,000

Budget estimate, 2024... 8,250,000

Committee recommendation... 6,000,000

The Rural Microentrepreneur Assistance Program is authorized under section 379E(d) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008s). This program provides direct loans and grants to microentreprenuer development organizations with the skills necessary to establish new rural microenterprises and provide technical assistance to maintain the successful operation of rural microenterprises.

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $6,000,000 for the Rural Microentrepreneur Assistance Program.

RURAL ENERGY FOR AMERICA PROGRAM

Appropriations, 2023... $18,000

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]

* * *

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... $3,000,000

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 $1,000,000 for the Healthy Food Financing Initiative and notes the funding provided through the American Rescue Plan Act.

Rural Utilities Service

The Rural Utilities Service was established under the Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994 (Public Law 103-354). RUS administers the electric and telephone programs of the former Rural Electrification Administration and the water and waste programs of the former Rural Development Administration.

RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT

(INCLUDING TRANSFERS OF FUNDS)

Appropriations, 2023... $596,404,000

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 Consolidated Farm and Rural Development Act (Public Law 87- 128). This program makes loans for water and waste development costs. Development loans are made to associations, including corporations operating on a nonprofit basis, municipalities, and similar organizations generally designated as public or quasi-public agencies, that propose projects for the development, storage, treatment, purification, and distribution of domestic water or the collection, treatment, or disposal of waste in rural areas. Such grants may not exceed 75 percent of the development cost of the projects and can supplement other funds borrowed or furnished by applicants to pay development costs.

The solid waste grant program is authorized under section 310B(b) of the Consolidated Farm and Rural Development Act (Public Law 87-128). Grants are made to public entities and private nonprofit organizations to provide technical assistance to local and regional governments for the purpose of reducing or eliminating pollution of water resources and for improving the planning and management of solid waste disposal facilities.

COMMITTEE RECOMMENDATIONS

The Committee recommends an appropriation of $671,560,000 for the Rural Water and Waste Disposal Program Account.

The Committee recommends $70,000,000 for water and waste disposal systems grants for Native Americans, including Native Alaskans, Hawaiian Homelands, and the Colonias. The Committee recognizes the special needs and problems for delivery of basic services to these populations and encourages the Secretary to distribute these funds in line with the fiscal year 2014 distribution to the degree practicable. In addition, the Committee makes up to $25,000,000 available for the circuit rider program.

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]

* * *

Technical Assistance.--The Committee provides $37,500,000 for technical assistance and directs no less than $1,000,000 to be used to support manufactured homes.

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, the loan subsidy and administrative expenses, as compared to the fiscal year 2023 and budget request levels:

RURAL ELECTRIFICATION AND TELECOMMUNICATIONS LOANS PROGRAM ACCOUNT

Table: [In thousands of dollars]

* * *

DISTANCE LEARNING, TELEMEDICINE AND BROADBAND PROGRAM

Appropriations, 2023... $466,504,000

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 $195,721,000 for the Distance Learning, Telemedicine, and Broadband Program.

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... $466,504,000

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 $195,721,000 for the Distance Learning, Telemedicine, and Broadband Program.

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 $3,000,000 to address critical healthcare needs, as authorized by section 379G of the Consolidated Farm and Rural Development Act (Public Law 115- 334).

Broadband Interagency Agreement.--The Committee directs the Department to continue the interagency agreement between the Federal Communications Commission, the National Telecommunications and Information Administration, and USDA.

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 $98,000,000 for the ReConnect pilot, which was established in the Consolidated Appropriations Act, 2018 (Public Law 115-141), and again reminds USDA that funding should not be used in areas that are already largely served and should be focused in areas where at least 90% of households lack access. In doing so, the Committee intends that USDA should avoid efforts that could duplicate existing or planned broadband networks, including avoiding granting funding in areas where another provider already has received funding from another Federal, State or local funding program to build, has otherwise committed to a government entity to build, or has invested private risk capital to build in an area and has obtained necessary permits to do so, even if construction is not yet complete. To achieve these goals, we urge USDA to continue coordinating closely with the National Telecommunications Information Administration and the Federal Communications Commission in a transparent manner to ensure that there is a common agreement about which areas are currently unserved, to utilize a common map to reach those conclusions that is updated each time a new funding decision is announced, and to have a clear and understandable challenge process.

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 USDA to support qualified projects that will provide the highest upload and download speeds possible to ensure rural America is receiving the same quality broadband services as their non-rural counterparts.

The Committee also remains concerned that States and territories outside the contiguous United States are having difficulty utilizing this program and directs the agency to report back to the Committee with recommendations to address these concerns.

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, USDA should report on any statutory barriers that prevent program dollars to go toward satellite Internet access.

(Continues with Part 8 of 12)

* * *

The report is posted at: https://www.congress.gov/congressional-report/118th-congress/senate-report/44/1?s=1&r=48

TARGETED NEWS SERVICE (founded 2004) features non-partisan 'edited journalism' news briefs and information for news organizations, public policy groups and individuals; as well as 'gathered' public policy information, including news releases, reports, speeches. For more information contact MYRON STRUCK, editor, [email protected], Springfield, Virginia; 703/304-1897; https://targetednews.com

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