April 9, 2025
The Honorable Susan Collins The Honorable Tom Cole
Chair Chair
Senate Committee on Appropriations House Committee on Appropriations
Washington, D.C. 20510 Washington, D.C. 20515
The Honorable Patty Murray The Honorable Rosa DeLauro
Ranking Member Ranking Member
Senate Committee on Appropriations House Committee on Appropriations
Washington, D.C. 20510 Washington, D.C. 20515
Dear Chairwoman Collins, Chairman Cole, Ranking Member Murray and Ranking Member DeLauro:
The Rural Network, a coalition of national, regional, state, local and grassroots organizations working with rural and tribal communities across the United States, urges you to include robust overall funding levels for the U.S. Department of Agriculture’s Rural Development (USDA-RD) programs in the final FY 2026 Agriculture, Rural Development, Food and Drug Administration and Related Agencies Appropriations bill.
USDA-RD programs are vital community building blocks for millions of rural Americans. As rural communities across the United States continue to face mounting economic pressures, aging infrastructure and the challenges of attracting and retaining population and workforce, USDA-RD programs are among the federal government’s most effective tools to ensure long-term opportunity, resilience and vitality in these regions.
A Proven Record of Impact
Through its portfolio of grants, direct loans and loan guarantees, USDA-RD has supported the delivery of essential services in tens of thousands of rural communities. These programs consistently deliver high returns on federal investment by leveraging public dollars to spur infrastructure, housing and business development that would otherwise be unaffordable in small communities. Unlike commercial lenders and other federal programs, USDA-RD’s portfolio of long-term loans with affordable terms enable rural families, businesses and local governments to pursue capital projects that improve lives and local economies.
With more than 450 USDA-RD offices nationwide staffed with an experienced workforce familiar with rural challenges, rural residents benefit from a uniquely accessible and responsive agency that has produced tangible, successful outcomes for rural America.
Congress has long recognized the value of USDA-RD, supporting appropriations for USDA-RD programs that empower rural communities to invest in clean water, broadband, housing, economic development and more. However, rural America’s needs remain urgent and growing – and continued investment is critical to ensure that residents can continue to build a life in rural communities. We urge Congress to provide robust funding to USDA-RD to enable continued investment in vital rural infrastructure and communities.
Closing the Digital Divide
Broadband infrastructure is the backbone of economic growth, telehealth, education and civic engagement. Yet many in rural areas still lack access to a reliable high-speed internet connection. USDA-RD’s Rural Utilities Service (RUS) must remain a cornerstone of rural broadband deployment, just as USDA was responsible for the electrification of rural America in the 20th century. In an increasingly digital world, the success of today’s rural workforce, students and healthcare providers depends on equitable access to high-speed internet. We urge Congress to provide robust funding for rural broadband initiatives through USDA’s Rural Utilities Service to ensure no rural community is left behind in the digital economy.
Protecting the Rural Housing Supply
Programs administered by USDA-RD’s Rural Housing Service (RHS) give rural residents the opportunity to buy, build, rent or repair safe, affordable homes. By supporting the development and maintenance of the rural housing supply, these programs contribute to economic stability and growth in rural counties. More than 2.1 million families have used RHS loans to become homeowners. Over 13,000 rental properties are currently enrolled in RHS’s portfolio of rural housing programs, providing more than 400,000 affordable units for rural residents. Without access to these resources, many rural families would face rising housing insecurity, displacement and the loss of opportunity to live and work in the communities they call home.
In FY 2024, USDA rural housing programs suffered $5.6 billion in cuts. A return to FY 2023 funding levels for RHS programs, including sufficient funding for Section 521 rental assistance to cover all currently assisted units, is essential to stabilizing the rural housing stock and supporting millions of rural families in realizing the American dream.
Clean Water is a Lifeline, Not a Luxury
Over 98 percent of rural Americans rely on small water systems, which face disproportionately high costs and often lack the technical, managerial and financial capacity to meet federal clean water standards. USDA-RD’s Water and Environmental Programs are essential in helping rural communities build and maintain safe, affordable water and sanitation infrastructure. These programs have delivered billions in investments to communities that would otherwise struggle to comply with health and environmental regulations, and they continue to support underserved rural areas, including tribal lands and persistently poor regions. However, significant unmet needs remain. Strengthening funding for USDA-RD Water and Environmental programs and investing in technical assistance will ensure rural families are not left behind when it comes to accessing safe, clean water.
Fueling Rural Entrepreneurship and Economic Development
Though comparatively small, programs within USDA-RD’s Business and Cooperative Service (RBCS) are among the federal government’s most flexible and essential tools to foster economic growth in rural communities. RBCS investments support rural small businesses and community-based intermediaries—such as business incubators, community development financial institutions and nonprofits—that create economic opportunity in rural areas. In our work with rural communities, we have seen firsthand that investing in local people, firms and institutions is essential to making broader public and private infrastructure and development efforts effective. We urge increased funding for RBCS and the Rural Innovation Center to ensure USDA-RD remains responsive to the needs of entrepreneurs and small businesses in rural communities.
Building Local Capacity and Driving Federal Coordination
Many rural communities lack the capacity to navigate federal loan and grant processes when compared to larger urban and suburban counterparts. We commend USDA-RD for recognizing the challenges rural communities face in navigating complex federal grant and loan systems. Programs such as the Community Facilities Technical Assistance and Training Grant enable rural Americans to secure the support they need to access other external resources. Increased support for technical assistance and capacity building ensures that more communities can access the full range of federal funding opportunities.
We also urge continued support for the Rural Partners Network (RPN), a cross-departmental initiative led by USDA-RD that places federal staff directly in rural communities to improve coordination between local and federal partners. Since launching in 2022, RPN has received approximately $11.5 million from the USDA-RD budget and has directly leveraged more than $300 million in awards for communities that have participated in RPN cohorts. RPN has a proven track record of success, and we support its expansion in FY 2026.
Maintaining USDA Rural Development’s Reach and Effectiveness
The Rural Network supports agency efforts to better coordinate program delivery between headquarters and state rural development offices. We strongly back efforts to enhance cross-department collaboration on rural development initiatives. We also support USDA’s efforts to modernize operations, upgrade information technology and improve data collection through the Rural Development Innovation Center. We also urge you to maintain adequate operational capabilities across USDA-RD’s network of field offices. USDA-RD’s ability to meet the needs of rural America depends on its capacity to deliver its programs efficiently and effectively.
We appreciate your continued support for USDA-RD and look forward to working with you to ensure these essential programs receive strong funding in the fiscal year 2026 appropriations bill.
Sincerely,
Alabama Association of Cooperatives
Aspen Institute – Community Strategies Group
Blue Sky Sustainable Living Center
California Center for Rural Policy (CCRP)
Coastal Enterprises, Inc.
CoBank
Communities Unlimited
Community Foundation of Greater Dubuque
Ecological Workforce Initiative
Enterprise Community Partners
Environmental and Energy Study Institute
Federation of Southern Cooperatives/Land Assistance Fund
Foundry Collective
Great Lakes Community Action Partnership
GrowSmart Maine
Housing Assistance Council
International Economic Development Council (IEDC)
Iowa Rural Development Council
Kiva Oregon
Land O’ Lakes, Inc.
Latino Farmers and Ranchers International Inc. (LFRI Inc.)
Main Street America
MDC
Midwest Assistance Program, Inc.
National Association of Counties
National Association of Development Organizations
National Cooperative Bank
National Cooperative Business Association CLUSA International
National Council of Farmer Cooperatives
National Rural Economic Developers Association
National Rural Electric Cooperative Association
National Rural Health Association
National Woodland Owners Association
NC Rural Center
Northern Forest Center
Northern Initiatives
NTCA – The Rural Broadband Association
Outdoor Recreation Roundtable
Partners for Rural America
Partners for Rural Transformation
Partners for Rural Washington
RCAP Solutions
Rochdale Capital
Region 5 Development Commission
Resource Rural
Rural Coalition
Rural Community Assistance Corporation
Rural Community Assistance Partnership Incorporated
Rural Community Solutions
Rural County Representatives of California
Rural Local Initiatives Support Corporation
Rural Partners of Michigan
RuralProgress
Rural Voices for Conservation Coalition
Rural Wisconsin Health Cooperative
SERCAP, Inc.
Small Business Majority
Wallowa Resources
Watershed Research & Training Center
West Central Initiative
CC:
Members of the U.S. House Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies
Members of the U.S. Senate Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies
Members of the U.S. House Committee on Agriculture
Members of the U.S. Senate Committee on Agriculture, Nutrition, and Forestry
