I 
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 Com-
mittee 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 con-
cerned 
A BILL 
To harmonize the population threshold for rural communities 
under programs carried out by the Department of Agri-
culture, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Rural Development 
Modernization Act’’. 
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SEC. 2. HARMONIZATION OF THE POPULATION THRESHOLD 
FOR RURAL COMMUNITIES UNDER DEPART-
MENT OF AGRICULTURE PROGRAMS. 
(a) INCREASE IN POPULATION THRESHOLDS UNDER 
CERTAIN PROGRAMS.— 
(1) BROADBAND, TELEMEDICINE, AND
DIS-
TANCE 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 popu-
lations 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 in-
habitants’’ and inserting ‘‘25,000 inhabitants (ex-
cluding populations described in subparagraphs (F) 
and (G) of section 343(a)(13) of the Consolidated 
Farm and Rural Development Act)’’. 
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(3) RESERVATION APPLICABLE TO LOAN GUAR-
ANTEES 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 
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(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 popu-
lations described in subparagraphs (F) and 
(G) of section 343(a)(13) of the Consoli-
dated 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 in-
serting ‘‘25,000’’. 
(b) ELIMINATION OF CAP ON MILITARY BASE POPU-
LATION EXCLUSION.—Section 343(a)(13)(I) of the Con-
solidated 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 
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(2) by striking ‘‘The first 1,500’’ and inserting 
‘‘Populations of’’. 
(c) ELIMINATION OF LOWER POPULATION THRESH-
OLDS UNDER WATER AND WASTE, AND COMMUNITY FA-
CILITIES 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 sub-
paragraphs (B) and (C) and redesignating subpara-
graphs (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 subpara-
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graph 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 redes-
ignating subclauses (III) through (VII) as sub-
clauses (IV) through (VIII), respectively, and insert-
ing 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 DEPART-
MENT 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 in-
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