Strengthening Rural Cooperatives and Communities Act
Strengthening Rural Cooperatives and Communities Act
Plain Language Summary
# Strengthening Rural Cooperatives and Communities Act (HR 1951) Summary **What It Does:** This bill would extend funding through 2029 for a USDA program that provides grants to nonprofit organizations helping rural communities start and grow cooperatives—businesses owned and controlled by their members, like agricultural co-ops or credit unions. The bill modifies the program to better prioritize assistance to the most vulnerable communities, including socially disadvantaged groups and economically distressed areas. It also encourages applicants to raise private funding by offering bonus points in grant competitions to organizations that contribute 25% matching funds from private sources. **Who It Affects:** Rural communities, farmers, small business owners, and nonprofits working in agriculture and rural development would benefit from expanded access to technical assistance and business support.
The changes specifically aim to help socially vulnerable and underserved populations gain better access to these cooperative development resources. **Current Status:** The bill was introduced by Representative Josh Riley (D-NY) and is currently under review in a House committee. It has not yet been voted on by the full Congress.
CRS Official Summary
Strengthening Rural Cooperatives and Communities ActThis bill reauthorizes through FY2029 and modifies the Rural Cooperative Development Grant (RCDG) Program. This Department of Agriculture (USDA) program provides grants to nonprofit institutions to help individuals and businesses start, expand, or improve rural cooperatives and other mutually-owned businesses through Rural Cooperative Development Centers.USDA must give preference to grants that commit to providing technical assistance and other services to socially vulnerable, underserved, or distressed communities. Under current law, USDA must give preference to underserved and economically distressed areas in rural areas.In addition, USDA may give an additional preference to applications that commit to providing a 25% matching contribution for the center with private funds and in-kind contributions. Specifically, USDA may award the maximum points in application scoring criteria to applicants that satisfy this requirement.Under the bill, cooperative development includes activities (e.g., outreach, education, training, and technical assistance) to support the startup, expansion, or ongoing sustainability of new and existing cooperatives. Current law does not define cooperative development.The bill directs the RCDG interagency working group to submit an annual report to Congress on its activities.Finally, the program currently includes cooperative research program requirements to collect data on the effects of all types of cooperatives on the national economy. Under the bill, USDA must analyze the data resulting from the research and include the data and analysis in the annual report to Congress.
Latest Action
Referred to the Subcommittee on Commodity Markets, Digital Assets, and Rural Development.