I 

118TH CONGRESS 

1ST SESSION H. R. 5359 

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 

SEPTEMBER 8, 2023 

Mr. COSTA (for himself, Mr. GARAMENDI, Mr. LAMALFA, Ms. LOFGREN, 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 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Rural Development 

5 Modernization Act’’. 


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1 SEC. 2. HARMONIZATION OF THE POPULATION THRESHOLD 

2 FOR RURAL COMMUNITIES UNDER DEPART3 MENT OF AGRICULTURE PROGRAMS. 

4 (a) INCREASE IN POPULATION THRESHOLDS UNDER

5 CERTAIN PROGRAMS.— 

6 (1) BROADBAND, TELEMEDICINE, AND DIS7 TANCE LEARNING.— 

8 (A) IN GENERAL.—Section 

9 601(b)(3)(A)(ii) of the Rural Electrification Act 

10 of 1936 (7 U.S.C. 950bb(b)(3)(A)(ii)) is 

11 amended by striking ‘‘20,000 inhabitants’’ and 

12 inserting ‘‘50,000 inhabitants (excluding popu13 lations described in subparagraphs (F) and (G) 

14 of such section)’’. 

15 (B) RATIO FOR ALLOCATION.—Section 

16 601(j)(2)(B) of such Act (7 U.S.C. 

17 950bb(j)(2)(B)) is amended by striking ‘‘2,500’’ 

18 each place it appears and inserting ‘‘10,000’’. 

19 (2) TELEPHONE SERVICE LOANS.—Section 

20 203(b) of the Rural Electrification Act of 1936 (7 

21 U.S.C. 924(b)) is amended by striking ‘‘5,000 in22 habitants’’ and inserting ‘‘50,000 inhabitants (ex23 cluding populations described in subparagraphs (F) 

24 and (G) of section 343(a)(13) of the Consolidated 

25 Farm and Rural Development Act)’’. 


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1 (3) RESERVATION APPLICABLE TO LOAN GUAR2 ANTEES FOR WATER, WASTEWATER, AND ESSENTIAL

3 COMMUNITY FACILITIES LOANS.—Section 

4 306(a)(24)(D)(ii) of the Consolidated Farm and 

5 Rural Development Act (7 U.S.C. 

6 1926(a)(24)(D)(ii)) is amended by striking 

7 ‘‘20,000’’ and inserting ‘‘30,000’’. 

8 (4) EMERGENCY AND IMMINENT COMMUNITY

9 WATER ASSISTANCE GRANTS.—Section 306A(e) of 

10 the Consolidated Farm and Rural Development Act 

11 (7 U.S.C. 1926A(e)) is amended— 

12 (A) in paragraph (1)(A), by striking 

13 ‘‘10,000’’ and inserting ‘‘50,000’’; and 

14 (B) in paragraph (2), by striking ‘‘3,000’’ 

15 and inserting ‘‘10,000’’. 

16 (5) RURAL HOUSING.—Title V of the Housing 

17 Act of 1949 is amended— 

18 (A) in section 520 (42 U.S.C. 1490)— 

19 (i) in the first sentence— 

20 (I) in clause (1), by striking 

21 ‘‘2,500’’ and inserting ‘‘10,000’’; 

22 (II) in clause (2)— 

23 (aa) by striking ‘‘2,500’’ and 

24 inserting ‘‘10,000’’; and 


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1 (bb) by striking ‘‘10,000’’ 

2 and inserting ‘‘30,000’’; and 

3 (III) in clause (iii)— 

4 (aa) by striking ‘‘10,000’’ 

5 and inserting ‘‘30,000’’; and 

6 (bb) by striking ‘‘20,000’’ 

7 and inserting ‘‘50,000’’; 

8 (ii) in the second sentence, by striking 

9 ‘‘35,000’’ and inserting ‘‘50,000’’; and 

10 (iii) by striking the last sentence and 

11 inserting the following: ‘‘In determining 

12 whether an area is ‘rural’ or a ‘rural area’, 

13 the Secretary shall disregard the popu14 lations described in subparagraphs (F) and 

15 (G) of section 343(a)(13) of the Consoli16 dated Farm and Rural Development Act (7 

17 U.S.C. 1991(a)(13)).’’; and 

18 (B) in section 533(d)(3)(C) (42 U.S.C. 

19 1490m(d)(3)(C)), by striking ‘‘10,000’’ and in20 serting ‘‘30,000’’. 

21 (b) ELIMINATION OF CAP ON MILITARY BASE POPU22 LATION EXCLUSION.—Section 343(a)(13)(I) of the Con23 solidated Farm and Rural Development Act (7 U.S.C. 

24 1991(a)(13)(I)) is amended— 


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1 (1) in the subparagraph heading, by striking 

2 ‘‘LIMITED EXCLUSION’’ and inserting ‘‘EXCLUSION’’; 

3 and 

4 (2) by striking ‘‘The first 1,500’’ and inserting 

5 ‘‘Populations of’’. 

6 (c) ELIMINATION OF LOWER POPULATION THRESH7 OLDS UNDER WATER AND WASTE, AND COMMUNITY FA8 CILITIES PROGRAMS.— 

9 (1) IN GENERAL.—Section 343(a)(13) of the 

10 Consolidated Farm and Rural Development Act (7 

11 U.S.C. 1991(a)(13)) is amended by striking sub12 paragraphs (B) and (C) and redesignating subpara13 graphs (D) through (I) as subparagraphs (B) 

14 through (G), respectively. 

15 (2) CONFORMING AMENDMENTS.—Section 

16 343(a)(13) of such Act (7 U.S.C. 1991(a)(13)) is 

17 amended— 

18 (A) in subparagraph (A), by striking ‘‘(I)’’ 

19 and inserting ‘‘(G)’’; 

20 (B) in subparagraph (D)(i), by striking 

21 ‘‘(F)’’ each place it appears and inserting 

22 ‘‘(D)’’; and 

23 (C) in subparagraph (F), by striking 

24 clause (ii) and inserting the following: 


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1 ‘‘(ii) ADJUSTMENTS.—The Secretary 

2 may, by regulation only, consider an area 

3 described in clause (i)(I) of this subpara4 graph not to be a rural area for purposes 

5 of subparagraph (A).’’. 

6 (d) EXCLUSION OF INCARCERATED AND MILITARY

7 BASE POPULATIONS IN DETERMINING WHETHER PART

8 OF AN AREA IS RURAL IN CHARACTER.— 

9 (1) IN GENERAL.—Section 343(a)(13)(D)(iii) of 

10 the Consolidated Farm and Rural Development Act 

11 (7 U.S.C. 1991(a)(13)(D)(iii)) is amended by redes12 ignating subclauses (III) through (VII) as sub13 clauses (IV) through (VIII), respectively, and insert14 ing after subclause (II) the following: 

15 ‘‘(III) disregard the populations 

16 described in subparagraphs (F) and 

17 (G) in determining whether part of an 

18 area is rural in character;’’. 

19 (2) CONFORMING AMENDMENT.—Section 

20 343(a)(13)(D)(iii)(V) of such Act (7 U.S.C. 

21 1991(a)(13)(D)(iii)(V)) is amended by striking 

22 ‘‘(IV)’’ and inserting ‘‘(V)’’. 


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1 SEC. 3. HARMONIZATION OF THE POPULATION THRESHOLD 

2 FOR RURAL COMMUNITIES UNDER DEPART3 MENT OF ENERGY PROGRAM. 

4 Section 609(a)(5) of the Public Utility Regulatory 

5 Policies Act of 1978 (7 U.S.C. 918c(a)(5)) is amended by 

6 striking ‘‘10,000 inhabitants’’ and inserting ‘‘50,000 in7 habitants (excluding populations described in subpara8 graphs (F) and (G) of section 343(a)(13) of the Consoli9 dated Farm and Rural Development Act (7 U.S.C. 

10 1991(a)(13))’’. 

11 SEC. 4. HARMONIZATION OF THE POPULATION THRESHOLD 

12 FOR RURAL WATER SUPPLY PROJECTS. 

13 The Reclamation Rural Water Supply Act of 2006 

14 (43 U.S.C. 2401 et seq.) is amended— 

15 (1) by amending section 102(9)(A) to read as 

16 follows: 

17 ‘‘(A) IN GENERAL.—The term ‘‘rural 

18 water supply project’’ means a project that is 

19 designed to serve a community or group of com20 munities— 

21 ‘‘(i) each of which has a population of 

22 not more than 50,000 inhabitants (exclud23 ing populations described in subparagraphs 

24 (F) and (G) of section 343(a)(13) of the 

25 Consolidated Farm and Rural Develop26 ment Act (7 U.S.C. 1991(a)(13)); and 


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1 ‘‘(ii) which may include Indian Tribes 

2 and Tribal organizations, dispersed home3 sites, or rural areas with domestic, indus4 trial, municipal, and residential water.’’; 

5 and 

6 (2) in section 202(6)— 

7 (A) by redesignating subparagraphs (B) 

8 and (C) as subparagraphs (D) and (E) respec9 tively; and 

10 (B) by inserting after subparagraph (A) 

11 the following: 

12 ‘‘(B) a rural water project or rural water 

13 supply project authorized under— 

14 ‘‘(i) section 1110 of division FF of the 

15 Consolidated Appropriations Act, 2021 

16 (Public Law 116–260); or 

17 ‘‘(ii) any other Federal statute; 

18 ‘‘(C) any project authorized for an Indian 

19 Tribe under part III of subtitle A of title X of 

20 the Omnibus Public Land Management Act of 

21 2009 (Public Law 111–11);’’. 

22 SEC. 5. CLARIFICATIONS REGARDING UNITED STATES TER23 RITORIES AND FREELY ASSOCIATED STATES. 

24 (a) BROADBAND, TELEMEDICINE, AND DISTANCE

25 LEARNING.— 


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1 (1) Section 601(c)(3)(D)(ii) of the Rural Elec2 trification Act of 1936 (7 U.S.C. 950bb(c)(3)(D)(ii)) 

3 is amended by inserting ‘‘, including any such com4 munities in a territory or possession of the United 

5 States’’ before the period. 

6 (2) Section 601(d)(4) of such Act (7 U.S.C. 

7 950bb(d)(4)) is amended— 

8 (A) in the subsection heading, by inserting 

9 ‘‘, TERRITORIAL,’’ before ‘‘AND LOCAL’’; and 

10 (B) in the text, by inserting ‘‘, territorial,’’ 

11 before ‘‘or local’’. 

12 (b) COMMUNITY CONNECT GRANTS.—Section 

13 604(a)(3)(A)(i)(III) of the Rural Electrification Act of 

14 1936 (7 U.S.C. 950bb–3(a)(3)(A)(i)(III)) is amended by 

15 inserting ‘‘or territory of the United States’’ before the 

16 semicolon. 

17 (c) RURAL COOPERATIVE DEVELOPMENT GRANTS.— 

18 Section 310B(e)(1)(B) of the Consolidated Farm and 

19 Rural Development Act (7 U.S.C. 1932(e)(1)(B)) is 

20 amended by inserting ‘‘the Commonwealth of the North21 ern Mariana Islands,’’ before ‘‘and the’’. 

22 (d) CONSOLIDATED FARM AND RURAL DEVELOP23 MENT ACT.—Each of sections 343(a)(6) and 381A(1) of 

24 the Consolidated Farm and Rural Development Act (7 

25 U.S.C. 1991(a)(6) and 2009(1)) is amended by striking 


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1 ‘‘Trust Territory of the Pacific Islands’’ and inserting 

2 ‘‘the Republic of the Marshall Islands, the Federated 

3 States of Micronesia, or the Republic of Palau, pursuant 

4 to the terms of the applicable Compact of Free Association 

5 with the United States’’. 

6 (e) HOUSING ACT OF 1949.—Title V of the Housing 

7 Act of 1949 (42 U.S.C. 1471 et seq.) is amended— 

8 (1) in section 501 (42 U.S.C. 1471)— 

9 (A) in subsection (a), by striking ‘‘and in 

10 the Territories of Alaska and Hawaii and in the 

11 Commonwealth of Puerto Rico, the Virgin Is12 lands, the territories and possessions of the 

13 United States, and the Trust Territory of the 

14 Pacific Islands’’ and inserting ‘‘, including any 

15 territory or other possession of the United 

16 States’’; and 

17 (B) in subsection (b)(4), by striking ‘‘the 

18 Northern Mariana Islands, and the Trust Terri19 tory of the Pacific Islands’’ and inserting ‘‘and 

20 the Northern Mariana Islands’’; and 

21 (2) in section 502(h)(16)(D) (42 U.S.C. 

22 1472(h)(16)(D)), by striking ‘‘the Trust Territories 

23 of the Pacific,’’. 


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1 SEC. 6. TECHNICAL AND CONFORMING AMENDMENTS. 

2 (a) Section 748 of the Agriculture, Rural Develop3 ment, Food and Drug Administration, and Related Agen4 cies Appropriations Act, 2002 (7 U.S.C. 918b) is amended 

5 by inserting a comma after ‘‘Service’’. 

6 (b) The Rural Electrification Act of 1936 is amend7 ed— 

8 (1) in section 305(d)(3)(C) (7 U.S.C. 

9 935(d)(3)(C)), by striking ‘‘(2)(A)(iii)’’ and insert10 ing ‘‘(2)(A)(ii)’’; 

11 (2) in section 306A(e) (7 U.S.C. 936a(e)), by 

12 striking ‘‘transfered’’ and inserting ‘‘transferred’’; 

13 (3) in section 601(e)(4)(C)(i) (7 U.S.C. 

14 950bb(e)(4)(C)(i)), by adding ‘‘and’’ at the end; 

15 (4) in section 603(c)(1)(A) (7 U.S.C. 950bb16 2(c)(1)(A)), by striking ‘‘maximum’’ and inserting 

17 ‘‘minimum’’; and 

18 (5) in section 701(a) (7 U.S.C. 950cc(a)), by 

19 striking the first comma. 

20 (c) The Consolidated Farm and Rural Development 

21 Act is amended— 

22 (1) in section 306(a)(20)(E) (7 U.S.C. 

23 1926(a)(20)(E)), by striking ‘‘states’’ and inserting 

24 ‘‘States’’; 


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1 (2) in section 307(a)(6)(B)(i) (7 U.S.C. 

2 1927(a)(6)(B)(i)), by striking the comma and insert3 ing a semicolon; 

4 (3) in section 310B(e)(4)(C)(vi) (7 U.S.C. 

5 1932(e)(4)(C)(vi)), by striking ‘‘center’’ and insert6 ing ‘‘centers’’; 

7 (4) in section 310B(i)(1)(A) (7 U.S.C. 

8 1932(i)(1)(A)), by inserting ‘‘section’’ before 

9 ‘‘501(a)’’; 

10 (5) in section 310E(d)(4)(C) (7 U.S.C. 

11 1935(d)(4)(C)), by striking ‘‘; and’’ the second place 

12 it appears; 

13 (6) in section 310F (7 U.S.C. 1936(e)(2)), in 

14 the paragraph heading, by striking ‘‘ELIGIBLITY’’ 

15 and inserting ‘‘ELIGIBILITY’’; 

16 (7) in section 343(a)(11)(C) (7 U.S.C. 

17 1991(a)(11)(C)), by striking ‘‘operator’’ and insert18 ing ‘‘operators’’; 

19 (8) in section 373(b)(2)(A)(ii) (7 U.S.C. 

20 2008h(b)(2)(A)(ii)), by striking ‘‘chapters 11, 12, or 

21 13, of Title’’ and inserting ‘‘chapter 11, 12, or 13 

22 of title’’; and 

23 (9) in section 381F (7 U.S.C. 2009e(a)), by 

24 striking ‘‘Director’’ and inserting ‘‘director’’. 


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1 (d) The Housing Act of 1949 (42 U.S.C. 1471 et 

2 seq.) is amended— 

3 (1) in section 501 (42 U.S.C. 1471), by trans4 ferring paragraph (5) of subsection (a) to subsection 

5 (b), adding such paragraph at the end of subsection 

6 (b), and redesignating such paragraph as paragraph 

7 (9); 

8 (2) in section 515 (42 U.S.C. 1485)— 

9 (A) in subsection (h)(2)(B), by inserting 

10 ‘‘for’’ after ‘‘approval requirements’’; and 

11 (B) in subsection (r)(1), by striking ‘‘the 

12 Secretary—’’ and inserting ‘‘The Secretary—’’; 

13 (3) in section 520 (42 U.S.C. 1490), in the first 

14 sentence, by striking ‘‘(except in the cases of Pajaro, 

15 in the State of California, and Guadalupe, in the 

16 State of Arizona)’’; 

17 (4) in section 536(e) (42 U.S.C. 1490p)— 

18 (A) in paragraph (1), in the matter pre19 ceding subparagraph (A), by inserting ‘‘of’’ 

20 after ‘‘or (d)’’; and 

21 (B) in paragraph (2), by striking ‘‘any sec22 tion’’ and inserting ‘‘any subsection’’; and 

23 (5) in section 538 (42 U.S.C. 1490r)— 


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1 (A) in subsection (d)(2), by striking ‘‘low 

2 or moderate income’’ and inserting ‘‘low- or 

3 moderate-income’’; and 

4 (B) in subsection (t), by striking ‘‘chapter 

5 I’’ and inserting ‘‘chapter 1’’. 

6 (e) The Reclamation Rural Water Supply Act of 2006 

7 (43 U.S.C. 2401 et seq.) is amended— 

8 (1) in section 106(e), by striking ‘‘(1) IN GEN9 ERAL’’ and all that follows through ‘‘After comple10 tion’’ and insert ‘‘After completion’’; 

11 (2) in section 107(e), by striking ‘‘or a grant is 

12 made, to an organization’’ and inserting ‘‘or a grant 

13 is made to, an organization’’; and 

14 (3) in section 202(2)(A), by striking ‘‘of title 

15 17, Code of Federal Regulation’’ and inserting ‘‘of 

16 title 17, Code of Federal Regulations’’. 

Æ 


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