H.R. 7609

119 HR 7609 IH: Rural Development Modernization Act
 U.S. House of Representatives
 2026-02-20
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 I  119th CONGRESS  2d Session  H. R. 7609  IN THE HOUSE OF REPRESENTATIVES   February 20, 2026   Mr. Costa  (for himself,  Mr. Crawford ,  Mr. Riley of New York , and  Mr. Valadao ) introduced the following bill; which was referred to the  Committee on Agriculture , and in addition to the Committees on  Energy and Commerce ,  Natural Resources , and  Financial Services , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned   A BILL
To harmonize the population threshold for rural communities under programs carried out by the Department of Agriculture, and for other purposes.
1.
Short title
This Act may be cited as the   Rural Development Modernization Act  .
2.
Harmonization of the population threshold for rural communities under Department of Agriculture programs
(a)
Increase in population thresholds under certain programs
(1)
Broadband, telemedicine, and distance learning
(A)
In general
Section 601(b)(3)(A)(ii) of the Rural Electrification Act of 1936 ( 7 U.S.C. 950bb(b)(3)(A)(ii) ) is amended by striking  20,000 inhabitants  and inserting  25,000 inhabitants (excluding populations described in subparagraphs (F) and (G) of such section) .
(B)
Ratio for allocation
Section 601(j)(2)(B) of such Act ( 7 U.S.C. 950bb(j)(2)(B) ) is amended by striking  2,500  each place it appears and inserting  25,000 .
(2)
Telephone service loans
Section 203(b) of the Rural Electrification Act of 1936 ( 7 U.S.C. 924(b) ) is amended by striking  5,000 inhabitants  and inserting  25,000 inhabitants (excluding populations described in subparagraphs (F) and (G) of section 343(a)(13) of the Consolidated Farm and Rural Development Act) .
(3)
Reservation applicable to loan guarantees for water, wastewater, and essential community facilities loans
Section 306(a)(24)(D)(ii) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1926(a)(24)(D)(ii) ) is amended by striking  20,000  and inserting  25,000 .
(4)
Emergency and imminent community water assistance grants
Section 306A(e) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1926A(e) ) is amended—
(A)
in paragraph (1)(A), by striking  10,000  and inserting  25,000 ; and
(B)
in paragraph (2), by striking  3,000  and inserting  25,000 .
(5)
Rural housing
Title V of the Housing Act of 1949 is amended—
(A)
in section 520 ( 42 U.S.C. 1490 )—
(i)
in the first sentence—
(I)
in clause (1), by striking  2,500  and inserting  25,000 ;
(II)
in clause (2)—
(aa)
by striking  2,500  and inserting  25,000 ; and
(bb)
by striking  10,000  and inserting  25,000 ; and
(III)
in clause (3)—
(aa)
by striking  10,000  and inserting  25,000 ; and
(bb)
by striking  20,000  and inserting  25,000 ; and
(ii)
by striking the last sentence and inserting the following:  In determining whether an area is  rural  or a  rural area , the Secretary shall disregard the populations described in subparagraphs (F) and (G) of section 343(a)(13) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1991(a)(13) ). ; and
(B)
in section 533(d)(3)(C) ( 42 U.S.C. 1490m(d)(3)(C) ), by striking  10,000  and inserting  25,000 .
(b)
Elimination of cap on military base population exclusion
Section 343(a)(13)(I) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1991(a)(13)(I) ) is amended—
(1)
in the subparagraph heading, by striking
Limited exclusion   and inserting
Exclusion  ; and
(2)
by striking  The first 1,500  and inserting  Populations of .
(c)
Elimination of lower population thresholds under water and waste, and community facilities programs
(1)
In general
Section 343(a)(13) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1991(a)(13) ) is amended by striking subparagraphs (B) and (C) and redesignating subparagraphs (D) through (I) as subparagraphs (B) through (G), respectively.
(2)
Conforming amendments
Section 343(a)(13) of such Act ( 7 U.S.C. 1991(a)(13) ) is amended—
(A)
in subparagraph (A), by striking  (I)  and inserting  (G) ;
(B)
in subparagraph (D)(i), by striking  (F)  each place it appears and inserting  (D) ; and
(C)
in subparagraph (F), by striking clause (ii) and inserting the following:
(ii)
Adjustments
The Secretary may, by regulation only, consider an area described in clause (i)(I) of this subparagraph not to be a rural area for purposes of subparagraph (A).
 .
(d)
Exclusion of incarcerated and military base populations in determining whether part of an area is rural in character
(1)
In general
Section 343(a)(13)(D)(iii) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1991(a)(13)(D)(iii) ) is amended by redesignating subclauses (III) through (VII) as subclauses (IV) through (VIII), respectively, and inserting after subclause (II) the following:
(III)
disregard the populations described in subparagraphs (F) and (G) in determining whether part of an area is rural in character;
  .
(2)
Conforming amendment
Section 343(a)(13)(D)(iii)(V) of such Act ( 7 U.S.C. 1991(a)(13)(D)(iii)(V) ) is amended by striking  (IV)  and inserting  (V) .
3.
Harmonization of the population threshold for rural communities under Department of Energy program
Section 609(a)(5) of the Public Utility Regulatory Policies Act of 1978 ( 7 U.S.C. 918c(a)(5) ) is amended by striking  10,000 inhabitants  and inserting  25,000 inhabitants (excluding populations described in subparagraphs (F) and (G) of section 343(a)(13) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1991(a)(13) ) .
4.
Harmonization of the population threshold for rural water supply projects
The Reclamation Rural Water Supply Act of 2006 ( 43 U.S.C. 2401 et seq. ) is amended—
(1)
in section 102(9)(C)—
(A)
in clause (i) by striking  or ;
(B)
in clause (ii), by striking  structures.  and inserting  structures; or ; and
(C)
by adding at the end the following:
(iii)
a project that is designed to serve an area described in subparagraph (F) or (G) of section 343(a)(13) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1991(a)(13) ).
 ; and
(2)
in section 202(6)—
(A)
by redesignating subparagraphs (B) and (C) as subparagraphs (D) and (E) respectively; and
(B)
by inserting after subparagraph (A) the following:
(B)
a rural water project, or rural water supply project that does not otherwise meet the definition of a rural water supply project under section 102(9), authorized under—
(i)
section 1110 of division FF of the Consolidated Appropriations Act, 2021 ( Public Law 116–260 ); or
(ii)
any other Federal statute;
(C)
any project authorized for an Indian Tribe under part III of subtitle A of title X of the Omnibus Public Land Management Act of 2009 ( Public Law 111–11 );
 .
5.
Clarifications regarding United States territories and freely associated states
(a)
Broadband, telemedicine, and distance learning
(1)
Section 601(c)(3)(D)(ii) of the Rural Electrification Act of 1936 ( 7 U.S.C. 950bb(c)(3)(D)(ii) ) is amended by inserting  , including any such communities in a territory or possession of the United States  before the period.
(2)
Section 601(d)(4) of such Act ( 7 U.S.C. 950bb(d)(4) ) is amended—
(A)
in the subsection heading, by inserting
, territorial,   before
and local  ; and
(B)
in the text, by inserting  , territorial,  before  or local .
(b)
Community connect grants
Section 604(a)(3)(A)(i)(III) of the Rural Electrification Act of 1936 ( 7 U.S.C. 950bb–3(a)(3)(A)(i)(III) ) is amended by inserting  or territory of the United States  before the semicolon.
(c)
Rural cooperative development grants
Section 310B(e)(1)(B) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1932(e)(1)(B) ) is amended by inserting  the Commonwealth of the Northern Mariana Islands,  before  and the .
(d)
Consolidated Farm and Rural Development Act
Each of sections 343(a)(6) and 381A(1) of the Consolidated Farm and Rural Development Act ( 7 U.S.C. 1991(a)(6)  and 2009(1)) is amended by striking  Trust Territory of the Pacific Islands  and inserting  the Republic of the Marshall Islands, the Federated States of Micronesia, or the Republic of Palau, pursuant to the terms of the applicable Compact of Free Association with the United States .
(e)
Housing Act of 1949
Title V of the Housing Act of 1949 ( 42 U.S.C. 1471 et seq. ) is amended—
(1)
in section 501 ( 42 U.S.C. 1471 )—
(A)
in subsection (a), by striking  and in the Territories of Alaska and Hawaii and in the Commonwealth of Puerto Rico, the Virgin Islands, the territories and possessions of the United States, and the Trust Territory of the Pacific Islands  and inserting  , including any territory or other possession of the United States ; and
(B)
in subsection (b)(4), by striking  the Northern Mariana Islands, and the Trust Territory of the Pacific Islands  and inserting  and the Northern Mariana Islands ;
(2)
in section 502(h)(16)(D) ( 42 U.S.C. 1472(h)(16)(D) ), by striking  the Trust Territories of the Pacific, ;
(3)
in section 520, by striking  but not in excess of 20,000 ; and
(4)
in section 533(d)(3)(C), by striking  below 10,000  and inserting  below 25,000 .
6.
Technical and conforming amendments
(a)
Section 748 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2002 ( 7 U.S.C. 918b ) is amended by inserting a comma after  Service .
(b)
The Rural Electrification Act of 1936 is amended—
(1)
in section 305(d)(3)(C) ( 7 U.S.C. 935(d)(3)(C) ), by striking  (2)(A)(iii)  and inserting  (2)(A)(ii) ;
(2)
in section 306A(e) ( 7 U.S.C. 936a(e) ), by striking  transfered  and inserting  transferred ;
(3)
in section 601(e)(4)(C)(i) ( 7 U.S.C. 950bb(e)(4)(C)(i) ), by adding  and  at the end;
(4)
in section 603(c)(1)(A) ( 7 U.S.C. 950bb–2(c)(1)(A) ), by striking  maximum  and inserting  minimum ; and
(5)
in section 701(a) ( 7 U.S.C. 950cc(a) ), by striking the first comma.
(c)
The Consolidated Farm and Rural Development Act is amended—
(1)
in section 306(a)(20)(E) ( 7 U.S.C. 1926(a)(20)(E) ), by striking  states  and inserting  States ;
(2)
in section 307(a)(6)(B)(i) ( 7 U.S.C. 1927(a)(6)(B)(i) ), by striking the comma and inserting a semicolon;
(3)
in section 310B(e)(4)(C)(vi) ( 7 U.S.C. 1932(e)(4)(C)(vi) ), by striking  center  and inserting  centers ;
(4)
in section 310B(i)(1)(A) ( 7 U.S.C. 1932(i)(1)(A) ), by inserting  section  before  501(a) ;
(5)
in section 310E(d)(4)(C) ( 7 U.S.C. 1935(d)(4)(C) ), by striking  ; and  the second place it appears;
(6)
in section 310F ( 7 U.S.C. 1936(e)(2) ), in the paragraph heading, by striking
Eligiblity   and inserting
Eligibility  ;
(7)
in section 343(a)(11)(C) ( 7 U.S.C. 1991(a)(11)(C) ), by striking  operator  and inserting  operators ;
(8)
in section 373(b)(2)(A)(ii) ( 7 U.S.C. 2008h(b)(2)(A)(ii) ), by striking  chapters 11, 12, or 13, of Title  and inserting  chapter 11, 12, or 13 of title ; and
(9)
in section 381F ( 7 U.S.C. 2009e(a) ), by striking  Director  and inserting  director .
(d)
The Housing Act of 1949 ( 42 U.S.C. 1471 et seq. ) is amended—
(1)
in section 501 ( 42 U.S.C. 1471 ), by transferring paragraph (5) of subsection (a) to subsection (b), adding such paragraph at the end of subsection (b), and redesignating such paragraph as paragraph (9);
(2)
in section 515 ( 42 U.S.C. 1485 )—
(A)
in subsection (h)(2)(B), by inserting  for  after  approval requirements ; and
(B)
in subsection (r)(1), by striking  the Secretary—  and inserting  The Secretary— ;
(3)
in section 520 ( 42 U.S.C. 1490 ), in the first sentence, by striking  (except in the cases of Pajaro, in the State of California, and Guadalupe, in the State of Arizona) ;
(4)
in section 536(e) ( 42 U.S.C. 1490p )—
(A)
in paragraph (1), in the matter preceding subparagraph (A), by inserting  of  after  or (d) ; and
(B)
in paragraph (2), by striking  any section  and inserting  any subsection ; and
(5)
in section 538 ( 42 U.S.C. 1490r )—
(A)
in subsection (d)(2), by striking  low or moderate income  and inserting  low- or moderate-income ; and
(B)
in subsection (t), by striking  chapter I  and inserting  chapter 1 .
(e)
The Reclamation Rural Water Supply Act of 2006 ( 43 U.S.C. 2401 et seq. ) is amended—
(1)
in section 106(e), by striking
(1)  In general   and all that follows through  After completion  and inserting  After completion ;
(2)
in section 107(e), by striking  or a grant is made, to an organization  and inserting  or a grant is made to, an organization ; and
(3)
in section 202(2)(A), by striking  of title 17, Code of Federal Regulation  and inserting  of title 17, Code of Federal Regulations .
7.
Annual reassessment of population threshold for rural areas
The Secretary of Agriculture shall annually reassess and, if necessary, adjust the numerical threshold used in determining whether an area is a rural area for purposes of the provisions of law amended by this Act, taking into account population level and density trends identified by the Bureau of the Census, the classification of areas as metropolitan or non-metropolitan by the Office of Management and Budget, and, as appropriate, Rural-Urban Commuting Area codes of the Economic Research Service, and in doing so, may take account of regional differences.