H.R. 7609

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7609 Introduced in House (IH)]

<DOC>

119th CONGRESS
2d Session
H. R. 7609

To harmonize the population threshold for rural communities under 
programs carried out by the Department of Agriculture, and for other 
purposes.

_______________________________________________________________________

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.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Rural Development Modernization 
Act''.

SEC. 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)''.

SEC. 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))''.

SEC. 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);''.

SEC. 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''.

SEC. 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''.

SEC. 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.
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