[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5359 Introduced in House (IH)]

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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.

    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 ``50,000 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 
                ``10,000''.
            (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 ``50,000 
        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 ``30,000''.
            (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 ``50,000''; and
                    (B) in paragraph (2), by striking ``3,000'' and 
                inserting ``10,000''.
            (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 ``10,000'';
                                    (II) in clause (2)--
                                            (aa) by striking ``2,500'' 
                                        and inserting ``10,000''; and
                                            (bb) by striking ``10,000'' 
                                        and inserting ``30,000''; and
                                    (III) in clause (iii)--
                                            (aa) by striking ``10,000'' 
                                        and inserting ``30,000''; and
                                            (bb) by striking ``20,000'' 
                                        and inserting ``50,000'';
                            (ii) in the second sentence, by striking 
                        ``35,000'' and inserting ``50,000''; and
                            (iii) 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 
                ``30,000''.
    (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 ``50,000 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) by amending section 102(9)(A) to read as follows:
                    ``(A) In general.--The term ``rural water supply 
                project'' means a project that is designed to serve a 
                community or group of communities--
                            ``(i) each of which has a population of not 
                        more than 50,000 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)); and
                            ``(ii) which may include Indian Tribes and 
                        Tribal organizations, dispersed homesites, or 
                        rural areas with domestic, industrial, 
                        municipal, and residential water.''; 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 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''; and
            (2) in section 502(h)(16)(D) (42 U.S.C. 1472(h)(16)(D)), by 
        striking ``the Trust Territories of the Pacific,''.

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 insert 
        ``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''.
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