[Federal Register Volume 89, Number 85 (Wednesday, May 1, 2024)]
[Rules and Regulations]
[Pages 34959-34961]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-09446]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service

Rural Business-Cooperative Service

Rural Utilities Service

7 CFR Parts 1780 and 1940

[Docket No. RUS-24-AGENCY-0004]


Update to Methodology and Formulas for Allocation of Loan and 
Grant Program Funds

AGENCY: Rural Business-Cooperative Service, Rural Housing Service, and 
Rural Utilities Service, USDA.

ACTION: Final rule.

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SUMMARY: The Rural Business-Cooperative Service, Rural Housing Service, 
and Rural Utilities Service (RBCS, RHS, RUS, or collectively referred 
to as the Agency), of the Rural Development (RD) mission area within 
the U.S. Department of Agriculture (USDA), is issuing this final rule 
to update the data it uses to determine a State's percentage of 
national nonmetropolitan unemployment income. The Agency is amending 
two regulations to correct the source for the data and provide 
transparency on its process of determining state funding allocations 
for various Agency programs.

DATES: The effective date of this final rule is May 1, 2024.

FOR FURTHER INFORMATION CONTACT: John Delaney at [email protected], 
Senior Policy Advisor, Rural Development Innovation Center, USDA, 1400 
Independence Avenue SW, Mail Stop 0793, Room 6138-South, Washington, DC 
20250-0793; or call (202) 720-9705.

SUPPLEMENTARY INFORMATION: 

Background

    Rural Development is a mission area within USDA comprised of RBCS, 
RHS and RUS. Rural Development's mission is to increase economic 
opportunity and improve the quality of life for all rural Americans and 
RD meets its mission by providing loans, grants, loan guarantees, and 
technical assistance through a multitude of programs aimed at creating 
and improving businesses, housing and infrastructure throughout rural 
America.
    The Agency receives funding through the annual appropriations 
process. Several programs under the Agency apply a formula to determine 
how much each state should receive in a funding allocation for a given 
fiscal year. Where applicable, the formulas have multiple components 
that include a state's percentage of the national nonmetropolitan 
unemployment income figure. The regulations that are part of this 
rulemaking currently cite the Bureau of Labor Statistics (BLS) as the 
source for the national nonmetropolitan unemployment information, but 
this data is not publicly available. The Agency is changing the cited 
data source to the Census Bureau's American Community Survey (ACS).
    The Agency is amending the regulations associated with this 
rulemaking to make the source of data clear. This amendment is not 
changing a current process or procedure.

Summary of Changes

7 CFR 1780

    1. Section 1780.18(c)(2)(ii)(C) was amended to change the Bureau of 
Labor Statistics to 5-year income data from the ACS to correctly cite 
the source of data used as part of the allocation calculation.

7 CFR 1940

    2. Sections 1940.585(b)(2), 1940.588(a)(2)(ii)(C), and 
1940.591(b)(2) were amended to show that the 5-year income data from 
the ACS should be used for nonmetropolitan unemployment income and not 
BLS. These changes were made to correctly cite the source of data.

Executive Orders/Acts

Executive Order 12866--Classification

    This rule is not subject to the provisions of Executive Order 12866 
because it has no impact on borrowers or other members of the public. 
It is the policy of this Department that rules relating to public 
property, loans, grants, benefits, or contracts shall be published for 
comments, notwithstanding the exemption in 5 U.S.C. 553 with respect to 
such rules. The action, however, is not published for proposed 
rulemaking because it involves only internal agency management and 
publication for comment is unnecessary.

[[Page 34960]]

Congressional Review Act

    This rule is not subject to the Congressional Review Act (``CRA'', 
5 U.S.C. 801 et seq.) as the CRA provides an exemption for any rule 
relating to agency management or personnel and for rules relating 
agency organization, procedure, or practice that does not substantially 
affect the rights or obligations of non-agency parties.

Assistance Listing Number (Formally Known as the Catalog of Federal 
Domestic Assistance)

    The amendments in this final rule apply to an interagency process 
and are not directly tied to a funding program where an Assistance 
Listing Number is required.

Executive Order 12372--Intergovernmental Consultation

    This final rule is amending incorrect citations for an interagency 
process and is not subject to the requirements of Executive Order 
12372, ``Intergovernmental Review of Federal Programs''.

Paperwork Reduction Act

    This final rule contains no new reporting or recordkeeping burdens 
that would require approval under the Paperwork Reduction Act.

National Environmental Policy Act

    In accordance with the National Environmental Policy Act of 1969, 
Public Law 91-190, this final rule has been reviewed in accordance with 
7 CFR part 1970 (``Environmental Policies and Procedures''). The Agency 
has determined that (i) this action meets the criteria established in 7 
CFR 1970.53(f); (ii) no extraordinary circumstances exist; and (iii) 
the action is not ``connected'' to other actions with potentially 
significant impacts, is not considered a ``cumulative action'' and is 
not precluded by 40 CFR 1506.1. Therefore, the Agency has determined 
that the action does not have a significant effect on the human 
environment, and therefore neither an Environmental Assessment nor an 
Environmental Impact Statement is required.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601-602) (RFA) generally 
requires an agency to prepare a regulatory flexibility analysis of any 
rule subject to notice and comment rulemaking requirements under the 
Administrative Procedure Act (``APA'') or any other statute. The 
Administrative Procedures Act exempts from notice and comment 
requirements rules ``relating to agency management or personnel or to 
public property, loans, grants, benefits, or contracts'' (5 U.S.C. 
553(a)(2)), so therefore an analysis has not been prepared for this 
rule.

Executive Order 12988--Civil Justice Reform

    This final rule is amending incorrect citations for an interagency 
process and is not subject to the requirement of Executive Order 12988.

Unfunded Mandates Reform Act (UMRA)

    This rule contains no Federal mandates (under the regulatory 
provisions of title II of the UMRA) for State, local, and Tribal 
governments or for the private sector. Therefore, this rule is not 
subject to the requirements of sections 202 and 205 of the UMRA.

Executive Order 13132--Federalism

    The policies contained in this rule do not have any substantial 
direct effect on States, on the relationship between the National 
Government and the States, or on the distribution of power and 
responsibilities among the various levels of government. Nor does this 
rule impose substantial direct compliance costs on state and local 
governments. Therefore, consultation with the States is not required.

Executive Order 13175--Consultation and Coordination With Indian Tribal 
Governments

    This final rule is amending incorrect citations for an interagency 
process and is not subject to the requirement of Executive Order 13175.

E-Government Act Compliance

    Rural Development is committed to the E-Government Act, which 
requires Government agencies in general to provide the public the 
option of submitting information or transacting business electronically 
to the maximum extent possible and to promote the use of the internet 
and other information technologies to provide increased opportunities 
for citizen access to Government information and services, and for 
other purposes.

Civil Rights Impact Analysis

    Rural Development has reviewed this rule in accordance with USDA 
Regulation 4300-4, Civil Rights Impact Analysis, to identify any major 
civil rights impacts the rule might have on program participants on the 
basis of age, race, color, national origin, sex, disability, marital or 
familial status. Based on the review and analysis of the rule and all 
available data, issuance of this final rule is not likely to negatively 
impact low and moderate-income populations, minority populations, 
women, Indian tribes or persons with disability, by virtue of their 
age, race, color, national origin, sex, disability, or marital or 
familial status. No major civil rights impact is likely to result from 
this final rule.

USDA Non-Discrimination Statement

    In accordance with Federal civil rights laws and USDA civil rights 
regulations and policies, the USDA, its Mission Areas, agencies, staff 
offices, employees, and institutions participating in or administering 
USDA programs are prohibited from discriminating based on race, color, 
national origin, religion, sex, gender identity (including gender 
expression), sexual orientation, disability, age, marital status, 
family/parental status, income derived from a public assistance 
program, political beliefs, or reprisal or retaliation for prior civil 
rights activity, in any program or activity conducted or funded by USDA 
(not all bases apply to all programs). Remedies and complaint filing 
deadlines vary by program or incident.
    Program information may be made available in languages other than 
English. Persons with disabilities who require alternative means of 
communication to obtain program information (e.g., Braille, large 
print, audiotape, American Sign Language) should contact the 
responsible Mission Area, agency, or staff office; or the 711 Relay 
Service.
    To file a program discrimination complaint, a complainant should 
complete a Form AD-3027, USDA Program Discrimination Complaint Form, 
which can be obtained online at https://www.usda.gov/sites/default/files/documents/ad-3027.pdf from any USDA office, by calling (866) 632-
9992, or by writing a letter addressed to USDA. The letter must contain 
the complainant's name, address, telephone number, and a written 
description of the alleged discriminatory action in sufficient detail 
to inform the Assistant Secretary for Civil Rights (ASCR) about the 
nature and date of an alleged civil rights violation. The completed AD-
3027 form or letter must be submitted to USDA by:
    a. Mail: U.S. Department of Agriculture, Office of the Assistant 
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC 
20250-9410; or
    b. Fax: (833) 256-1665 or (202) 690-7442; or
    c. Email: [email protected].

[[Page 34961]]

List of Subjects

7 CFR Part 1780

    Community development, Community facilities, Grant programs--
housing and community development, Loan programs--housing and community 
development, Reporting and recordkeeping requirements, Rural areas, 
Waste treatment and disposal, Water supply, Watersheds.

7 CFR Part 1940

    Administrative practice and procedure, Agriculture, Environmental 
protection, Flood plains, Grant programs--agriculture, Grant programs--
housing and community development, Loan programs--agriculture, Loan 
programs--housing and community development, Low and moderate income 
housing, Reporting and recordkeeping requirements, Rural areas, Truth 
in lending.

    Accordingly, for the reasons discussed in the preamble, the Agency 
amends 7 CFR parts 1780 and 1940 as follows:

PART 1780--WATER AND WASTE LOANS AND GRANTS

0
1. The authority citation for part 1780 continues to read as follows:

    Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 16 U.S.C. 1005.

Subpart A--General Policies and Requirements

0
2. Amend Sec.  1780.18 by revising paragraphs (c)(2)(ii)(B) and (C) to 
read as follows:


Sec.  1780.18  Allocation of program funds.

* * * * *
    (c) * * *
    (2) * * *
    (ii) * * *
    (B) For the criterion specified in paragraph (b)(2)(i)(B) of this 
section, 5-year income data from the American Community Survey (ACS).
    (C) For the criterion specified in paragraph (b)(2)(i)(C) of this 
section, the 5-year data from the ACS.
* * * * *

PART 1940--GENERAL

0
3. The authority citation for part 1940 continues to read as follows:

    Authority:  5 U.S.C. 301; 7 U.S.C. 1989; and 42 U.S.C. 1480.

Subpart L--Methodology and Formulas for Allocation of Loan and 
Grant Program Funds

0
4. Amend Sec.  1940.585 by revising paragraph (b)(2) to read as 
follows:


Sec.  1940.585  Community Facility loans.

* * * * *
    (b) * * *
    (2) The data source for the first criterion is the most recent 
decennial Census data. The data source for the second and third 
criteria is the 5-year data from the American Community Survey (ACS). 
Each criterion is assigned a specific weight according to its relevance 
in determining need. The percentage representing each criterion is 
multiplied by the weight factor and summed to arrive at a State factor 
(SF). The SF cannot exceed 0.05.
Equation 1 to Paragraph (b)
SF = (criterion (b)(1)(i) x 50 percent) + (criterion (b)(1)(ii) x 25 
percent) + (criterion (b)(1)(iii) x 25 percent)
* * * * *

0
5. Amend Sec.  1940.588 by revising paragraph (a)(2)(ii)(C) to read as 
follows:


Sec.  1940.588  Business and Industry Guaranteed and Direct Loans, 
Rural Business Development Grants, and Intermediary Relending Program.

* * * * *
    (a) * * *
    (2) * * *
    (ii) * * *
    (C) For the criterion specified in paragraph (a)(2)(i)(C) of this 
section, the 5-year data from the ACS.
* * * * *

0
6. Amend Sec.  1940.591 by revising paragraph (b)(2) to read as 
follows:


Sec.  1940.591  Community Program Guaranteed loans.

* * * * *
    (b) * * *
    (2) The data source for the first criterion is the most recent 
decennial Census data. The data source for the second and third 
criteria is the 5-year data from the American Community Survey (ACS). 
Each criterion is assigned a specific weight according to its relevance 
in determining need. The percentage representing each criterion is 
multiplied by the weight factor and summed to arrive at a State factor 
(SF). The SF cannot exceed 0.05.
Equation 1 to Paragraph (b)
SF = (criterion (b)(1)(i) x 50 percent) + (criterion (b)(1)(ii) x 25 
percent) + (criterion (b)(1)(iii) x 25 percent)
* * * * *

Basil I. Gooden,
Under Secretary, USDA, Rural Development.
[FR Doc. 2024-09446 Filed 4-30-24; 8:45 am]
BILLING CODE 3410-15-P