U.S.C. 1926 - Water & Waste Facility Loans & Grants

10/16/2017

7 USC 1926: Water and waste facility loans and grants
Text contains those laws in effect on October 15, 2017
From Title 7-AGRICULTURE
CHAPTER 50-AGRICULTURAL CREDIT
SUBCHAPTER I-REAL ESTATE LOANS
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§1926. Water and waste facility loans and grants
(a) In general
(1) The Secretary is also authorized to make or insure loans to associations, including corporations not operated for
profit, Indian tribes on Federal and State reservations and other federally recognized Indian tribes, and public and
quasi-public agencies to provide for the application or establishment of soil conservation practices, shifts in land use,
the conservation, development, use, and control of water, and the installation or improvement of drainage or waste
disposal facilities, recreational developments, and essential community facilities including necessary related
equipment, all primarily serving farmers, ranchers, farm tenants, farm laborers, rural businesses, and other rural
residents, and to furnish financial assistance or other aid in planning projects for such purposes. The Secretary may
also make or insure loans to communities that have been designated as rural empowerment zones or rural enterprise
communities pursuant to part I of subchapter U of chapter 1 of title 26, or as rural enterprise communities pursuant to
section 766 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 1999 (Public Law 105-277; 112 Stat. 2681, 2681-37), to provide for the installation or
improvement of essential community facilities including necessary related equipment, and to furnish financial
assistance or other aid in planning projects for such purposes. The Secretary may also make loans to any borrower to
whom a loan has been made under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.), for the conservation,
development, use, and control of water, and the installation of drainage or waste disposal facilities, primarily serving
farmers, ranchers, farm tenants, farm laborers, rural businesses, and other rural residents. When any loan made for a
purpose specified in this paragraph is sold out of the Agricultural Credit Insurance Fund as an insured loan, the interest
or other income thereon paid to an insured holder shall be included in gross income for purposes of chapter 1 of title
26. With respect to loans of less than $500,000 made or insured under this paragraph that are evidenced by notes and
mortgages, as distinguished from bond issues, borrowers shall not be required to appoint bond counsel to review the
legal validity of the loan whenever the Secretary has available legal counsel to perform such review.
(2) WATER, WASTE DISPOSAL, AND WASTEWATER FACILITY GRANTS.(A) AUTHORITY.(I) IN GENERAL.-The Secretary is authorized to make grants to such associations to finance specific projects for
works for the development, storage, treatment, purification, or distribution of water or the collection, treatment, or
disposal of waste in rural areas.
(ii) AMOUNT-The amount of any grant made under the authority of this subparagraph shall not exceed 75 per
centum of the development cost of the project to serve the area which the association determines can be feasibly
served by the facility and to adequately serve the reasonably foreseeable growth needs of the area.
(iii) GRANT RATE.-The Secretary shall fix the grant rate for each project in conformity with regulations issued by the
Secretary that shall provide for a graduated scale of grant rates establishing higher rates for projects in
communities that have lower community population and income levels.
(B) REVOLVING FUNDS FOR FINANCING WATER AND WASTEWATER PROJECTS.(I) IN GENERAL.-The Secretary may make grants to qualified private, nonprofit entities to capitalize revolving funds
for the purpose of providing financing to eligible entities for(I) predevelopment costs associated with proposed water and wastewater projects or with existing water and
wastewater systems; and
(II) short-term costs incurred for replacement equipment, small-scale extension services, or other small capital
projects that are not part of the regular operations and maintenance activities of existing water and wastewater
systems.
(H) ELIGIBLE ENTITIES.-TO be eligible to obtain financing from a revolving fund under clause (i), an eligible entity
must be eligible to obtain a loan, loan guarantee, or grant under paragraph (1) or this paragraph.
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(iii) MAXIMUM AMOUNT OF FINANCING.-The amount of financing made to an eligible entity under this subparagraph
shall not exceed(I) $100,000 for costs described in clause (i)(I); and
(II) $100,000 for costs described in clause (i)(II).
(iv) TERM.-The term of financing provided to an eligible entity under this subparagraph shall not exceed 10 years.
(v) ADMINISTRATION.-The Secretary shall limit the amount of grant funds that may be used by a grant recipient for
administrative costs incurred under this subparagraph.
(vi) ANNUAL REPORT.-A nonprofit entity receiving a grant under this subparagraph shall submit to the Secretary an
annual report that describes the number and size of communities served and the type of financing provided.
(vii) AUTHORIZATION OF APPROPRIATIONS.-There are authorized to be appropriated to carry out this subparagraph
$30,000,000 for each of fiscal years 2008 through 2018.
(C) SPECIAL EVALUATION ASSISTANCE FOR RURAL COMMUNITIES AND HOUSEHOLDS PROGRAM.(i) IN GENERAL.-The Secretary may establish the Special Evaluation Assistance for Rural Communities and
Households (SEARCH) program, to make predevelopment planning grants for feasibility studies, design
assistance, and technical assistance, to financially distressed communities in rural areas with populations of 2,500
or fewer inhabitants for water and waste disposal projects described in paragraph (1), this paragraph, and
paragraph (24).
(ii) TERMS.(1) DOCUMENTATION.-With respect to grants made under this subparagraph, the Secretary shall require the
lowest amount of documentation practicable.
(II) MATcRING.-Notwithstanding any other provisions in this subsection, the Secretary may fund up to 100
percent of the eligible costs of grants provided under this subparagraph, as determined by the Secretary.
(iii) Rim:Ann.-The Secretary may use not more than 4 percent of the total amount of funds made available for a
fiscal year for water, waste disposal, and essential community facility activities under this chapter to carry out this
subparagraph.
(iv) RELATIONSHIP TO OTHER Au-mom-N.-The funds and authorities provided under this subparagraph are in addition
to any other funds or authorities the Secretary may have to carry out activities described in clause (i).
(3) No grant shall be made under paragraph (2) of this subsection in connection with any project unless the
Secretary determines that the project (i) will serve a rural area which, if such project is carried out, is not likely to
decline in population below that for which the project was designed, (ii) is designed and constructed so that adequate
capacity will or can be made available to serve the present population of the area to the extent feasible and to serve
the reasonably foreseeable growth needs of the area, and (iii) is necessary for an orderly community development
consistent with a comprehensive community water, waste disposal, or other development plan of the rural area.
(4)(A) The term "development cost" means the cost of construction of a facility and the land, easements, and rightsof-way, and water rights necessary to the construction and operation of the facility.
(B) The term "project" shall include facilities providing central service or facilities serving individual properties, or
both
(5) APPLICATION REQUIREMENTS.-NOt earlier than 60 days before a preliminary application is filed for a loan under
paragraph (1) or a grant under paragraph (2) for a water or waste disposal purpose, a notice of the intent of the
applicant to apply for the loan or grant shall be published in a general circulation newspaper. The selection of
engineers for a project design shall be done by a request for proposals by the applicant.
(6) The Secretary may make grants aggregating not to exceed $30,000,000 in any fiscal year to public bodies or
such other agencies as the Secretary may determine having authority to prepare comprehensive plans for the
development of water or waste disposal systems in rural areas which do not have funds available for immediate
undertaking of the preparation of such plan.
(7) Repealed. Pub. L. 107-171, title VI, §6020(b)(1), May 13, 2002, 116 Stat. 363.
(8) In each instance where the Secretary receives two or more applications for financial assistance for projects that
would serve substantially the same group of residents within a single rural area, and one such application is submitted
by a city, town, county or other unit of general local government, he shall, in the absence of substantial reasons to the
contrary, provide such assistance to such city, town, county or other unit of general local government.
(9) CONFORMITY WITH STATE DRINKING WATER STANDARDS.-NO Federal funds shall be made available under this section for a
water system unless the Secretary determines that the water system will make significant progress toward meeting the
standards established under title XIV of the Public Health Service Act (commonly known as the "Safe Drinking Water
Act") (42 U.S.C. 300f et seq.).
(10) CONFORMITY WITH FEDERAL AND STATE WATER POLLUTION CONTROL STANDARDS.-NO Federal funds shall be made available
under this section for a water treatment discharge or waste disposal system unless the Secretary determines that the
effluent from the system conforms with applicable Federal and State water pollution control standards.
(11) Repealed. Pub. L. 113-79, title VI, §6012(b), Feb. 7, 2014, 128 Stat. 845.
(12)(A) The Secretary shall, in cooperation with institutions eligible to receive funds under the Act of July 2, 1862 (12
Stat. 503-505, as amended; 7 U.S.C. 301-305, 307 and 308), or the Act of August 30, 1890 (26 Stat. 417-419, as
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amended; 7 U.S.C. 321-326 and 328), including the Tuskegee Institute and State, substate, and regional planning
bodies, establish a system for the dissemination of information and technical assistance on federally sponsored or
funded programs. The system shall be for the use of institutions eligible to receive funds under the Act of July 2, 1862
(12 Stat. 503-505, as amended; 7 U.S.C. 301-305, 307, and 308), or the Act of August 30, 1890 (26 Stat. 417-419, as
amended; 7 U.S.C. 321-326 and 328), including the Tuskegee Institute and State, substate, and regional planning
bodies, and other persons concerned with rural development.
(B) The informational system developed under this paragraph shall contain all pertinent information, including, but
not limited to, information contained in the Federal Procurement Data System, Federal Assistance Program Retrieval
System, Catalogue of Federal Domestic Assistance, Geographic Distribution of Federal Funds, United States Census,
and Code of Federal Regulations.
(C) The Secretary shall obtain from all other Federal departments and agencies comprehensive, relevant, and
applicable information on programs under their jurisdiction that are operated in rural areas.
(D) Of the sums authorized to be appropriated to carry out the provisions of this chapter, not more than $1,000,000
per year may be expended to carry out the provisions of this paragraph.
(13) In the making of loans and grants for community waste disposal and water facilities under paragraphs (1) and
(2) of this subsection the Secretary shall accord highest priority to the application of any municipality or other public
agency (including an Indian tribe on a Federal or State reservation or other federally recognized Indian tribal group) in
a rural community having a population not in excess of five thousand five hundred and which, in the case of water
facility loans, has a community water supply system, where the Secretary determines that due to unanticipated
diminution or deterioration of its water supply, immediate action is needed, or in the case of waste disposal, has a
community waste disposal system, where the Secretary determines that due to unanticipated occurrences the system
is not adequate to the needs of the community. The Secretary shall utilize the Soil Conservation Service in rendering
technical assistance to applicants under this paragraph to the extent he deems appropriate.
(14) RURAL WATER AND WASTEWATER TECHNICAL ASSISTANCE AND TRAINING PROGRAMS.(A) IN GENERAL.-The Secretary may make grants to private nonprofit organizations for the purpose of enabling them
to provide to associations described in paragraph (1) of this subsection technical assistance and training to(i) identify, and evaluate alternative solutions to, problems relating to the obtaining, storage, treatment,
purification, or distribution of water or the collection, treatment, or disposal of waste in rural areas;
(ii) prepare applications to receive financial assistance for any purpose specified in paragraph (2) of this
subsection from any public or private source; and
(iii) improve the operation and maintenance practices at any existing works for the storage, treatment,
purification, or distribution of water or the collection, treatment, or disposal of waste in rural areas.
(B) SELECTION PRIORITY.-Ill selecting recipients of grants to be made under subparagraph (A), the Secretary shall
give priority to private nonprofit organizations that have experience in providing the technical assistance and training
described in subparagraph (A) to associations serving rural areas in which residents have low income and in which
water supply systems or waste facilities are unhealthful.
(C) FUNDING.-Not less than 1 nor more than 3 percent of any funds appropriated to carry out paragraph (2) of this
subsection for any fiscal year shall be reserved for grants under subparagraph (A) unless the applications, qualifying
for grants, received by the Secretary from eligible nonprofit organizations for the fiscal year total less than 1 per
centum of those funds.
(15) In the case of water and waste disposal facility projects serving more than one separate rural community, the
Secretary shall use the median population level and the community income level of all the separate communities to be
served in applying the standards specified in paragraph (2) of this subsection and section 1927(a)(3)(A) of this title.
(16) Grants under paragraph (2) of this subsection may be used to pay the local share requirements of another
Federal grant-in-aid program to the extent permitted under the law providing for such grant-in-aid program.
(17)(A) In the approval and administration of a loan made under paragraph (1) for a water or waste disposal facility,
the Secretary shall consider fully any recommendation made by the loan applicant or borrower concerning the
technical design and choice of materials to be used for such facility.
(B) If the Secretary determines that a design or materials, other than those that were recommended, should be used
in the water or waste disposal facility, the Secretary shall provide such applicant or borrower with a comprehensive
justification for such determination.
(18) In making or insuring loans or making grants under this subsection, the Secretary may not condition approval of
such loans or grants upon any requirement, condition or certification other than those specified under this chapter.
(19) COMMUNITY FACILITIES GRANT PROGRAM.(A) IN GENERAL-The Secretary may make grants, in a total amount not to exceed $10,000,000 for any fiscal year, to
associations, units of general local government, nonprofit corporations, Indian tribes (as such term is defined under
section 5304(e) of title 25)„1and federally recognized Indian tribes to provide the Federal share of the cost of
developing specific essential community facilities in rural areas.
(B) FEDERAL SHARE.(i) IN GENERAL-Except as provided in clauses (ii) and (iii), the Secretary shall, by regulation, establish the amount
of the Federal share of the cost of the facility under this paragraph.
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(ii) MAXIMUM AMOUNT.-The amount of a grant provided under this paragraph for a facility shall not exceed 75
percent of the cost of developing the facility.
(iii) GRADUATED SCALE-The Secretary shall provide for a graduated scale for the amount of the Federal share
provided under this paragraph, with higher Federal shares for facilities in communities that have lower community
population and income levels, as determined by the Secretary.
(20) COMMUNITY FACILITIES GRANT PROGRAM FOR RURAL COMMUNITIES WITH EXTREME UNEMPLOYMENT AND SEVERE ECONOMIC
DEPRESSION.(A) DEFINITION OF NOT EMPLOYED RATE.-In this paragraph, the term "not employed rate", with respect to a community,
means the percentage of individuals over the age of 18 who reside within the community and who are ready, willing,
and able to be employed but are unable to find employment, as determined by the department of labor of the State
in which the community is located.
(B) GRANT parrHoRrry.-The Secretary may make grants to associations, units of general local government, nonprofit
corporations, and Indian tribes (as defined in section 5304 of title 25) in a State to provide the Federal share of the
cost of developing specific essential community facilities in rural communities with respect to which the not employed
rate is greater than the lesser of(i) 500 percent of the average national unemployment rate on November 9, 2000, as determined by the Bureau
of Labor Statistics; or
(ii) 200 percent of the average national unemployment rate during the Great Depression, as determined by the
Bureau of Labor Statistics.
(C) FEDERAL SHARE-Paragraph (19)(B) shall apply to a grant made under this paragraph.
(D) AUTHORIZATION OF APPROPRIATIONS.-There are authorized to be appropriated to carry out this paragraph
$50,000,000 for fiscal year 2001 and such sums as are necessary for each subsequent fiscal year, of which not
more than 5 percent of the amount made available for a fiscal year shall be available for community planning and
implementation.
(E) RURAL BROADBAND.-Notwithstanding subparagraph (C), the Secretary may make grants to State agencies for use
by regulatory commissions in states 2 with rural communities without local broadband service to establish a
competitively, technologically neutral grant program to telecommunications carriers or cable operators that establish
common carrier facilities and services which, in the commission's determination, will result in the long-term
availability to such communities of affordable broadband services which are used for the provision of high speed
Internet access.
(21) COMMUNITY FACILITIES GRANT PROGRAM FOR RURAL COMMUNITIES WITH HIGH LEVELS OF OUT-MIGRATION OR LOSS OF POPULATION.(A) GRANT AUTHORITY-The Secretary may make grants to associations, units of general local government, nonprofit
corporations, and Indian tribes (as defined in section 5304 of title 25) in a State to provide the Federal share of the
cost of developing specific essential community facilities in any geographic area(i) that is represented by(I) any political subdivision of a State;
(II) an Indian tribe on a Federal or State reservation; or
(III) other federally recognized Indian tribal group;
(ii) that is located in a rural area (as defined in section 2009 a of this title);
(iii) with respect to which, during the most recent 5-year period, the net out-migration of inhabitants, or other
population loss, from the area equals or exceeds 5 percent of the population of the area; and
(iv) that has a median household income that is less than the nonnnetropolitan median household income of the
United States.
(B) FEDERAL SHARE.-Paragraph (19)(B) shall apply to a grant made under this paragraph.
(C) Authorization of appropriations.-There are authorized to be appropriated to carry out this paragraph
$50,000,000 for fiscal year 2001 and such sums as are necessary for each subsequent fiscal year, of which not
more than 5 percent of the amount made available for a fiscal year shall be available for community planning and
implementation.
(22) RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM.(A) IN GENERAL.-The Secretary shall continue a national rural water and wastewater circuit rider program that(i) is consistent with the activities and results of the program conducted before February 7, 2014, as determined
by the Secretary; and
(ii) receives funding from the Secretary, acting through the Rural Utilities Service.
(B) AUTHORIZATION OF APPROPRIATIONS.-There is authorized to be appropriated to carry out this paragraph $20,000,000
for fiscal year 2014 and each fiscal year thereafter.
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(23) MULTIJURISDICTIONAL REGIONAL PLANNING ORGANIZATIONS.(A) GRANTS.-The Secretary shall provide grants to multijurisdictional regional planning and development
organizations to pay the Federal share of the cost of providing assistance to local governments to improve the
infrastructure, services, and business development capabilities of local governments and local economic
development organizations.
(B) PRioRrry.-In determining which organizations will receive a grant under this paragraph, the Secretary shall give
priority to an organization that(i) serves a rural area that, during the most recent 5-year period(I) had a net out-migration of inhabitants, or other population loss, from the rural area that equals or exceeds
5 percent of the population of the rural area; or
(II) had a median household income that is less than the nonmetropolitan median household income of the
applicable State; and
(ii) has a history of providing substantive assistance to local governments and economic development
organizations.
(C) FEDERAL SHARE.-A grant provided under this paragraph shall be for not more than 75 percent of the cost of
providing assistance described in subparagraph (A).
(D) MAXIMUM AMOUNT OF GRANTS-The amount of a grant provided to an organization under this paragraph shall not
exceed $100,000.
(E) AUTHORIZATION OF APPROPRIATIONS.-There is authorized to be appropriated to carry out this paragraph $30,000,000
for each of fiscal years 2003 through 2007.
(24) LOAN GUARANTEES FOR WATER, WASTEWATER, AND ESSENTIAL COMMUNITY FACILITIES LOANS.(A) IN GENERAL.-The Secretary may guarantee a loan made to finance a community facility or water or waste facility
project in a rural area, including a loan financed by the net proceeds of a bond described in section 142(a) of title 26.
(B) REQUIREMENTS.-TO be eligible for a loan guarantee under subparagraph (A), an individual or entity offering to
purchase the loan shall demonstrate to the Secretary that the person has(i) the capabilities and resources necessary to service the loan in a manner that ensures the continued
performance of the loan, as determined by the Secretary; and
(ii) the ability to generate capital to provide borrowers of the loan with the additional credit necessary to properly
service the loan.
(C) USE OF LOAN GUARANTEES FOR COMMUNITY FACILITIES.-The Secretary shall consider the benefits to communities that
result from using loan guarantees in carrying out the community facilities program and, to the maximum extent
practicable, use guarantees to enhance community involvement.
(25) TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMUNITY FACILITIES.(A) IN GENERAL-The Secretary may make grants to an entity that is a Tribal College or University (as defined in
section 1059c of title 20) to provide the Federal share of the cost of developing specific Tribal College or University
essential community facilities in rural areas.
(B) FEDERAL SHARE.-The Secretary shall establish the maximum percentage of the cost of the facility that may be
covered by a grant under this paragraph, except that the Secretary may not require non-Federal financial support in
an amount that is greater than 5 percent of the total cost of the facility.
(C) AUTHORIZATION OF APPROPRIATIONS.-There is authorized to be appropriated to carry out this paragraph $10,000,000
for each of fiscal years 2008 through 2018.
(26) ESSENTIAL COMMUNITY FACILITIES TECHNICAL ASSISTANCE AND TRAINING.(A) IN GENERAL.-The Secretary may make grants to public bodies and private nonprofit corporations (such as
States, counties, cities, townships, and incorporated towns and villages, boroughs, authorities, districts, and Indian
tribes on Federal and State reservations) that will serve rural areas for the purpose of enabling the public bodies and
private nonprofit corporations to provide to associations described in paragraph (1) technical assistance and training,
with respect to essential community facilities programs authorized under this subsection(i) to assist communities in identifying and planning for community facility needs;
(ii) to identify public and private resources to finance community facility needs;
(iii) to prepare reports and surveys necessary to request financial assistance to develop community facilities;
(iv) to prepare applications for financial assistance;
(v) to improve the management, including financial management, related to the operation of community
facilities; or
(vi) to assist with other areas of need identified by the Secretary.
(B) SELECTION PRIORITY.-111 selecting recipients of grants under this paragraph, the Secretary shall give priority to
private, nonprofit, or public organizations that have experience in providing technical assistance and training to rural
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entities.
(C) FUNDING.-Not less than 3 nor more than 5 percent of any funds appropriated to carry out each of the essential
community facilities grant, loan and loan guarantee programs as authorized under this subsection for a fiscal year
shall be reserved for grants under this paragraph.
(b) Curtailment or limitation of service prohibited

The service provided or made available through any such association shall not be curtailed or limited by inclusion of
the area served by such association within the boundaries of any municipal corporation or other public body, or by the
granting of any private franchise for similar service within such area during the term of such loan; nor shall the
happening of any such event be the basis of requiring such association to secure any franchise, license, or permit as a
condition to continuing to serve the area served by the association at the time of the occurrence of such event.
(c) Repealed. Pub. L. 91-606, title III, §302(2), Dec. 31, 1970, 84 Stat. 1759
(d) Carryover of unused authorizations for appropriations

Any amounts appropriated under this section shall remain available until expended, and any amounts authorized for
any fiscal year under this section but not appropriated may be appropriated for any succeeding fiscal year.
( Pub. L. 87-128, title III, §306, Aug. 8, 1961, 75 Stat. 308; Pub. L. 87-703, title IV, §401(2), Sept. 27, 1962, 76 Stat.
632; Pub. L. 89-240, §1, Oct. 7, 1965, 79 Stat. 931 ; Pub. L. 89-769, §6(b), Nov. 6, 1966, 80 Stat. 1318; Pub. L. 90488, §§3-5, Aug. 15, 1968, 82 Stat. 770; Pub. L. 91-524, title VIII, §806(a), Nov. 30, 1970, 84 Stat. 1383; Pub. L. 91606, title III, §302(2), Dec. 31, 1970, 84 Stat. 1759; Pub. L. 91-617, §1(a), Dec. 31, 1970, 84 Stat. 1855; Pub. [.92419, title I, §§104-112, Aug. 30, 1972, 86 Stat. 658 , 659; Pub. L. 91-524, title VIII, §816(c), as added Pub. L. 93-86,
§1(27)(B), Aug. 10, 1973, 87 Stat. 240; Pub. L. 95-334, title I, §§104-107(a), Aug. 4, 1978, 92 Stat. 421 , 422; Pub. L.
96-355, §7, Sept. 24, 1980, 94 Stat. 1174 ; Pub. L. 96-438, §2(1), Oct. 13, 1980, 94 Stat. 1871 ; Pub. L. 97-35, title I,
§121, Aug. 13, 1981, 95 Stat. 368; Pub. L. 99-198, title XIII, §1304(a), Dec. 23, 1985, 99 Stat. 1519; Pub. L. 99-514,
§2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 101-624, title XXIII, §§2316(b), 2321, 2328, 2329, 2341, 2342, 2393, Nov.
28, 1990, 104 Stat. 4008 , 4010, 4017, 4026, 4027, 4057; Pub. L. 102-237, title VII, §701(a), (h)(1)(A), (B), Dec. 13,
1991, 105 Stat. 1879, 1880; Pub. L. 103-129, §3, Nov. 1, 1993, 107 Stat. 1366; Pub. L. 103-354, title II, §235(b)(5),
Oct. 13, 1994, 108 Stat. 3222; Pub. L. 104-127, title VII, §§741(a), 758, 763, Apr. 4, 1996, 110 Stat. 1122, 1132,
1148; Pub. L. 106-387, §1(a) [title VII, §773], Oct. 28, 2000, 114 Stat. 1549, 1549A-45; Pub. L. 106-472, title III,
§§304(a), 305(a), Nov. 9,2000, 114 Stat. 2070 , 2071; Pub. L. 107-76, title VII, §762, Nov. 28, 2001, 115 Stat. 743;
Pub. L. 107-171, title VI, §§6001-6007(a), 6008, 6020(b)(1), May 13, 2002, 116 Stat. 352-355, 363; Pub. L. 110-234,
title VI, §§6001, 6002(a), 6003-6007, title VII, §7511(c)(3), May 22, 2008, 122 Stat. 1161 , 1162, 1267; Pub. L. 110246, §4(a), title VI, §§6001, 6002(a), 6003-6007, title VII, §7511(c)(3), June 18, 2008, 122 Stat. 1664 , 1923, 1924,
2029; Pub. L. 113-79, title VI, §§6001-6006, 6012(b), Feb. 7, 2014, 128 Stat. 841 , 842, 845.)
REFERENCES IN TEXT

Section 766 of the Agriculture, Rural Development, Food and Drug Administration, and Related
Agencies Appropriations Act, 1999, referred to in subsec. (a)(1), is Pub. L. 105-277, div. A, §101(a)[title VII,
§7661, Oct. 21, 1998, 112 Stat. 2681 , 2681-37, which is not classified to the Code.
The Rural Electrification Act of 1936, referred to in subsec. (a)(1), is act May 20, 1936, ch. 432,49 Stat.
1363, as amended, which is classified generally to chapter 31 (§901 et seq.) of this title. For complete
classification of this Act to the Code, see section 901 of this title and Tables.
For definition of "this chapter", referred to in subsec. (a)(2)(C)(iii), (12)(D), (18), see note set out under
section 1921 of this title.
The Public Health Service Act, referred to in subsec. (a)(9), is act July 1, 1944, ch. 373, 58 Stat. 682 , as
amended. Title XIV of the Act, known as the Safe Drinking Water Act, is classified principally to
subchapter XII (§300f et seq.) of chapter 6A of Title 42, The Public Health and Welfare. For complete
classification of these Acts to the Code, see Short Title note and Short Title of 1974 Amendments note
set out under section 201 of Title 42 and Tables.
Act of July 2, 1862 (12 Stat. 503-505, as amended; 7 U.S.C. 301-305, 307 and 308), referred to in subsec.
(a)(12)(A), is act July 2, 1862, ch. 130, 12 Stat. 503, popularly known as the "Morrill Act" and also as the
"First Morrill Act", which is classified generally to subchapter I (§301 et seq.) of chapter 13 of this title. For
complete classification of this Act to the Code, see Short Title note set out under section 301 of this title and
Tables.
Act of August 30, 1890 (26 Stat. 417-419, as amended; 7 U.S.C. 321-326 and 328), referred to in subsec.
(a)(12)(A), is act Aug. 30, 1890, ch. 841, 26 Stat. 417 , as amended, popularly known as the Agricultural
College Act of 1890 and also as the Second Morrill Act, which is classified generally to subchapter II
(§321 et seq.) of chapter 13 of this title. For complete classification of this Act to the Code, see Short Title
note set out under section 321 of this title and Tables.
Section 2009 of this title, referred to in subsec. (a)(21)(A)(ii), was subsequently amended, and no longer
defines the term "rural area".
CODIFICATION
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Pub. L. 110-234 and Pub. L. 110-246 made identical amendments to this section. The amendments by
Pub. L. 110-234 were repealed by section 4(a) of Pub. L. 110-246.
AMENDMENTS

2014-Subsec. (a)(2)(B)(vii). Pub. L. 113-79, §6001, substituted "2018" for "2012".
Subsec. (a)(11). Pub. L. 113-79, §6012(b), struck out par. (11) which related to rural business
opportunity grants.
Subsec. (a)(19)(C). Pub. L. 113-79, §6002, struck out subpar. (C) which related to reservation of funds
for child day care facilities.
Subsec. (a)(22). Pub. L. 113-79, §6003, added par. (22) and struck out former par. (22) which related to
rural water and wastewater circuit rider program.
Subsec. (a)(24)(C). Pub. L. 113-79, §6004, added subpar. (C).
Subsec. (a)(25)(C). Pub. L. 113-79, §6005, substituted "2018" for "2012".
Subsec. (a)(26). Pub. L. 113-79, §6006, added par. (26).
2008-Subsec. (a)(2)(B)(vii). Pub. L. 110-246, §6001, substituted "2008 through 2012" for "2002 through
2007".
Subsec. (a)(2)(C). Pub. L. 110-246, §6002(a), added subpar. (C).
Subsec. (a)(11)(C). Pub. L. 110-246, §7511(c)(3), substituted "the National Institute of Food and
Agriculture" for "the Cooperative State Research, Education, and Extension Service".
Subsec. (a)(11)(D). Pub. L. 110-246, §6003, substituted "2008 through 2012" for "1996 through 2007".
Subsec. (a)(19)(C)(ii). Pub. L. 110-246, §6004, substituted "June" for "April".
Subsec. (a)(20)(E). Pub. L. 110-246, §6005, substituted "State" for "state" and struck out "dial-up
Internet access or" before "broadband service".
Subsec. (a)(22)(C). Pub. L. 110-246, §6006, substituted "$25,000,000 for fiscal year 2008" for
115,000,000 for fiscal year 2003".
Subsec. (a)(25)(A). Pub. L. 110-246, §6007(1), substituted "grants to an entity that is a Tribal College or
University" for "grants to tribal colleges and universities" and "specific Tribal College or University" for
"specific tribal college or university".
Subsec. (a)(25)(B). Pub. L. 110-246, §6007(2), added subpar. (B) and struck out former subpar. (B)
which directed the Secretary to establish the maximum percentage of the cost of the facility that could be
covered by a grant, provided that the amount of a grant was not to exceed 75 percent of the cost of
developing the facility, and directed the Secretary to provide for a graduated scale that would provide
higher percentages for facilities in communities with lower community population and income levels.
Subsec. (a)(25)(C). Pub. L. 110-246, §6007(3), substituted "2008 through 2012" for "2003 through
2007".
2002-Subsec. (a)(1). Pub. L. 107-171, §6001, inserted after first sentence "The Secretary may also make
or insure loans to communities that have been designated as rural empowerment zones or rural
enterprise communities pursuant to part I of subchapter U of chapter 1 of title 26, or as rural enterprise
communities pursuant to section 766 of the Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 1999 (Public Law 105-277; 112 Stat. 2681,268137), to provide for the installation or improvement of essential community facilities including necessary
related equipment, and to furnish financial assistance or other aid in planning projects for such
purposes."
Subsec. (a)(2). Pub. L. 107-171, §6002, inserted heading, designated existing provisions as subpar. (A)
and inserted heading, designated first sentence of subpar. (A) as cl. (i), inserted heading, and struck out
"aggregating not to exceed $590,000,000 in any fiscal year" after "authorized to make grants",
designated second sentence of subpar. (A) as cl. (ii), inserted heading, and substituted "subparagraph"
for "paragraph", designated third sentence of subpar. (A) as cl. (iii) and inserted heading, and added
subpar. (B).
Subsec. (a)(7). Pub. L. 107-171, §6020(b)(1), struck out heading and text of par. (7). Text read as
follows: "For the purpose of water and waste disposal grants and direct and guaranteed loans provided
under paragraphs (1) and (2), the terms 'rural' and 'rural area' mean a city, town, or unincorporated area
that has a population of no more than 10,000 inhabitants."
Subsec. (a)(11)(D). Pub. L. 107-171, §6003, substituted 115,000,000" for 17,500,000" and "2007" for
"2002".
Subsec. (a)(19)(C). Pub. L. 107-171, §6004, added subpar. (C).
Subsec. (a)(22) to (25). Pub. L. 107-171, §§6005-6007(a), 6008, added pars. (22) to (25).
2001-Subsec. (a)(20)(E). Pub. L. 107-76 added subpar. (E).
2000-Subsec. (a)(19)(A). Pub. L. 106-387, which directed amendment of section 306(a)(19)(A) of the
Consolidated Farmers Home Administration Act of 1961 by inserting ", Indian tribes (as such term is
defined under section 5304(e) of title 25)," after "nonprofit corporations", was executed to this section, which
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is section 306(a)(19)(A) of the Consolidated Farm and Rural Development Act, to reflect the probable
intent of Congress.
Subsec. (a)(20). Pub. L. 106-472, §304(a), added par. (20).
Subsec. (a)(21). Pub. L. 106-472, §305(a), added par. (21).
1996-Subsec. (a)(2). Pub. L. 104-127, §741(a)(1), substituted 1590,000,000" for 1500,000,000".
Subsec. (a)(5). Pub. L. 104-127, §758, added par. (5).
Subsec. (a)(7). Pub. L. 104-127, §741(a)(2), added par. (7) and struck out former par. (7) which read as
follows: "As used in this chapter, the terms 'rural' and 'rural area' shall not include any area in any city or
town which has a population in excess of ten thousand inhabitants, except that (A) for the purpose of
loans for essential community facilities under subsection (a)(1) of this section, the terms 'rural' and 'rural
area' may include any area in any city or town that has a population not in excess of twenty thousand
inhabitants; and (B) for purposes of loans and grants for private business enterprises under sections
1924(b), 1932 and 1942(b), (c), and (d) of this title the terms 'rural' and 'rural area' may include all
territory of a State that is not within the outer boundary of any city having a population of fifty thousand or
more and its immediately adjacent urbanized and urbanizing areas with a population density of more than
one hundred persons per square mile, as determined by the Secretary of Agriculture according to the
latest decennial census of the United States: Provided, That special consideration for such loans and
grants shall be given to areas other than cities having a population of more than twenty-five thousand."
Subsec. (a)(9), (10). Pub. L. 104-127, §741(a)(3), added pars. (9) and (10) and struck out former pars.
(9) and (10) which read as follows:
"(9) No Federal funds shall be authorized for use unless it be certified by the appropriate State water
pollution control agency that the water supply system authorized will not result in pollution of waters of the
State in excess of standards established by that agency.
"(10) In the case of sewers and waste disposal systems, no Federal funds shall be advanced
hereunder unless the appropriate State water pollution control agency shall certify that the effluent
therefrom shall conform with appropriate State and Federal water pollution control standards when and
where established."
Subsec. (a)(11). Pub. L. 104-127, §741(a)(3), added par. (11) and struck out former par. (11) which
authorized grants to public bodies, private nonprofit community development corporations or entities, or
other agencies to enable such recipients to (1) identify and analyze business opportunities, including
opportunities in export markets, that would use local rural economic and human resources, (2) identify,
train, and provide technical assistance to existing or prospective rural entrepreneurs and managers, (3)
establish business support centers and otherwise assist in creation of new rural businesses, development
of methods of financing local businesses, and enhancing capacity of local individuals and entities to
engage in sound economic activities, and (4) conduct regional, community, and local economic
development planning and coordination, and leadership development.
Subsec. (a)(14). Pub. L. 104-127, §741(a)(6)(A)-(D)(i), inserted par. heading and headings for subpars.
(A) to (C), and realigned margins of subpars. and cls. (i) to (iii) of subpar. (A).
Pub. L. 104-127, §741(a)(4), (5), redesignated par. (16) as (14) and struck out former par. (14) which
read as follows:
"(14)(A) The Secretary, under such reasonable rules and conditions as he shall establish, shall make
grants to eligible volunteer fire departments for up to 50 per centum of the cost of firefighting equipment
needed by such departments but which such departments are unable to purchase through the resources
otherwise available to them, and for the cost of the training necessary to enable such departments to use
such equipment efficiently.
"(B) For the purposes of this subsection, the term 'eligible volunteer fire department' means any
established volunteer fire department in a rural town, village, or unincorporated area where the population
is less than two thousand but greater than two hundred, as reasonably determined by the Secretary."
Subsec. (a)(14)(C). Pub. L. 104-127, §741(a)(6)(D)(ii), which directed substitution of "3 percent of any
funds appropriated" for "2 per centum of any funds provided in appropriations Acts", was executed by
making the substitution for "2 per centum of any funds provided in Appropriations Acts", to reflect the
probable intent of Congress.
Subsec. (a)(15). Pub. L. 104-127, §741(a)(4), (5), redesignated par. (17) as (15) and struck out former
par. (15) which authorized making or insuring of loans to associations, including corporations not
operated for profit, Indian tribes on Federal and State reservations and other federally recognized Indian
tribes, and public and quasi-public agencies, for purpose of financing construction, acquisition, and
operation of transmission facilities for any electric system owned and operated by a public body located
in a rural area which was, as of October 1, 1976, receiving bulk power from designated agencies of
Department of the Interior.
Subsec. (a)(16) to (18). Pub. L. 104-127, §741(a)(5), redesignated pars. (18) to (20) as (16) to (18),
respectively. Former pars. (16) to (18) redesignated (14) to (16), respectively.
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Subsec. (a)(19). Pub. L. 104-127, §763, added par. (19).
Pub. L. 104-127, §741(a)(5), redesignated par. (19) as (17).
Subsec. (a)(20). Pub. L. 104-127, §741(a)(5), redesignated par. (20) as (18).
1994-Subsec. (a)(15)(C), (D). Pub. L. 103-354 redesignated subpar. (D) as (C) and struck out former
subpar. (C) which read as follows: "The Administrator of the Rural Electrification Administration shall
administer loans made or insured under this paragraph."
1993-Subsec. (a)(1). Pub. L. 103-129 inserted after first sentence "The Secretary may also make loans
to any borrower to whom a loan has been made under the Rural Electrification Act of 1936 (7 U.S.C. 901 et
seq.), for the conservation, development, use, and control of water, and the installation of drainage or
waste disposal facilities, primarily serving farmers, ranchers, farm tenants, farm laborers, rural
businesses, and other rural residents."
1991-Subsec. (a)(11)(B)(ii). Pub. L. 102-237, §701(a)(1), in subcl. (I) inserted "and" after semicolon and
in subcl. (II) substituted a period for "; and".
Subsec. (a)(12)(D), (20). Pub. L. 102-237, §701(h)(1)(A), (B), substituted "this chapter" for "this Act".
Subsec. (a)(21). Pub. L. 102-237, §701(a)(2), struck out par. (21) which was identical to par. (20).
1990-Subsec. (a)(1). Pub. L. 101-624, §2328, inserted "rural businesses," after "farm laborers,".
Subsec. (a)(2). Pub. L. 101-624, §2321, struck out ": Provided, That for fiscal years commencing after
September 30, 1981, such grants may not exceed $154,900,000 in any fiscal year" after "in rural areas".
Subsec. (a)(3). Pub. L. 101-624, §2316(b), struck out "and not inconsistent with any planned
development provided in any State, multijurisdictional, county, or municipal plan approved by competent
authority for the area in which the rural community is located, and the Secretary shall require the
submission of all applications for financial assistance under this section to the multijurisdictional substate
areawide general purpose planning and development agency that has been officially designated as a
clearinghouse agency under Office of Management and Budget Circular A-95 and to the county or
municipal government having jurisdiction over the area in which the proposed project is to be located for
review and comment within a designated period of time not to exceed 30 days concerning among other
considerations, the effect of the project upon the areawide goals and plans of such agency or
government. No loan under this section shall be made that is inconsistent with any multijurisdictional
planning and development district areawide plan of such agency. The Secretary is authorized to
reimburse such agency or government for the cost of making the required review. Until October 1, 1973,
the Secretary may make grants prior to the completion of the comprehensive plan, if the preparation of
such plan has been undertaken for the area" after "of the rural area".
Subsec. (a)(11). Pub. L. 101-624, §§2341, 2342, amended par. (11) generally. Prior to amendment, par.
(11) read as follows: "The Secretary may make grants, not to exceed $15,000,000 annually, to public
bodies or such other agencies as the Secretary may select to provide rural development technical
assistance, rural community leadership development, and community and areawide rural development
planning."
Subsec. (a)(20). Pub. L. 101-624, §2329, added par. (20).
Subsec. (a)(21). Pub. L. 101-624, §2393, added par. (21).
1986-Subsec. (a)(1), (15)(B). Pub. L. 99-514 substituted "Internal Revenue Code of 1986" for "Internal
Revenue Code of 1954", which for purposes of codification was translated as "title 26" thus requiring no
change in text.
1985-Subsec. (a)(2). Pub. L. 99-198 provided for graduated scale of grant rates for each project and
higher rates in communities having lower community population and income levels.
Subsec. (a)(16) to (19). Pub. L. 99-198 added pars. (16) to (19).
1981-Subsec. (a)(2). Pub. L. 97-35 inserted provisions limiting grants for fiscal years after Sept. 30,
1981.
1980-Subsec. (a)(7). Pub. L. 96-438 provided that for the purpose of loans for essential community
facilities under subsection (a)(1) of this section, terms "rural" and "rural area" may include any area in any
city or town with a population not in excess of twenty thousand.
Subsec. (a)(11) to (15). Pub. L. 96-355 in par. (11) substituted provisions authorizing annual grants not
to exceed $15,000,000 for rural development technical assistance, rural community leadership
development, etc., for provisions authorizing annual grants not to exceed $10,000,000 for preparation of
comprehensive plans for rural development or designated aspects of such rural development, added par.
(12), and redesignated former pars. (12) to (14) as (13) to (15), respectively.
1978-Subsec. (a)(1). Pub. L. 95-334, §104, inserted provisions respecting bond counsel requirements for
loans under $500,000.
Subsec. (a)(2). Pub. L. 95-334, §105, substituted 1500,000,000" for 1300,000,000" and "75" for "50".
Subsec. (a)(7). Pub. L. 95-334, §106, struck out references to the Commonwealth of Puerto Rico and
the Virgin Islands.
Subsec. (a)(14). Pub. L. 95-334, §107(a), added par. (14).
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1973-Subsec. (a)(13). Pub. L. 91-524, title VIII, §816(c), as added by Pub. L. 93-86 added par. (13).
1972-Subsec. (a)(1). Pub. L. 92-419, §104(1), (2), authorized loans to Indian tribes on Federal and State
reservations and other federally recognized Indian tribes and included as an allowable use provision for
essential community facilities including necessary related equipment, respectively.
Subsec. (a)(2). Pub. L. 92-419, §105, substituted 1300,000,000" for 1100,000,000".
Subsec. (a)(3). Pub. L. 92-419, §§106, 107, substituted "project" for "facility" where first appearing; in
item (i), substituted "project" for "facility" and inserted in such text ", if such project is carried out,"; in item
(ii), substituted "will or can be" for "will be or can be"; substituted "and (iii)" for "or (iii)" and in such item
(iii), substituted "an orderly community development consistent with a comprehensive community water,
waste disposal, or other development plan" and "development provided in any State, multijurisdictional,
county, or municipal plan approved by competent authority" for "orderly community development
consistent with a comprehensive community water or sewer development plan" and "development under
State, county, or municipal plans approved as official plans by competent authority", substituted
"Secretary shall require the submission of all applications for financial assistance under this section to the
multijurisdictional substate areawide general purpose planning and development agency that has been
officially designated as a clearinghouse agency under Office of Management and Budget Circular A-95
and to the county or municipal government having jurisdiction over the area in which the proposed project
is to be located for review and comment within a designated period of time not to exceed 30 days
concerning among other considerations, the effect of the project upon the areawide goals and plans of
such agency or government" for "Secretary shall establish regulations requiring the submission of all
applications for financial assistance under this chapter to the county or municipal government in which
the proposed project is to be located for review and comment by such agency within a designated period
of time"; prohibited loans inconsistent with multijurisdictional planning and development district areawide
plan of the agency; authorized agency or government reimbursement for cost of making the review; and
extended authority for making grants prior to completion of the comprehensive plan from Oct. 1, 1971 to
Oct. 1, 1973.
Subsec. (a)(5). Pub. L. 92-419, §110, struck out provisions of former par. (5) which prohibited any loan
or grant under subsec. (a) of this section which would cause the unpaid principal indebtedness of any
association under this chapter and Act Aug. 28, 1937, as amended (superseded by this chapter),
together with amount of any assistance in the form of a grant to exceed $4,000,000 at any one time.
Subsec. (a)(6). Pub. L. 92-419, §108, substituted 130,000,000" for 115,000,000", struck out "official"
before "comprehensive plans", and substituted "waste disposal systems" for "sewer systems".
Subsec. (a)(7). Pub. L. 92-419, §109, substituted definition of "rural" and "rural area" as excluding an
area in a city or town with a population in excess of ten thousand inhabitants for prior provision for rural
areas for purposes of water and waste disposal projects excluding an area in a city or town with a
population in excess of 5,500 inhabitants, provided exception provision and special consideration for
loans and grants to areas other than cities having a population of more than twenty-five thousand.
Subsec. (a)(11), (12). Pub. L. 92-419, §§111, 112, added pars. (11) and (12).
1970-Subsec. (a)(1). Pub. L. 91-617 required inclusion in gross income of the interest or other income
paid to an insured holder when any loan made for a purpose specified in subsec. (a)(1) is sold out of the
Agricultural Credit Insurance Fund as an insured loan.
Subsec. (c). Pub. L. 91-606 repealed subsec. (c), added by Pub. L. 89-769, §6(b), Nov. 6, 1966, 80 Stat.
1318 , which related to loans to associations in areas suffering major disasters. See section 4401 et seq. of
Title 42, The Public Health and Welfare.
Subsec. (d). Pub. L. 91-524 added subsec. (d).
1968-Subsec. (a). Pub. L. 90-488 substituted 1100,000,000" for 150,000,000" in par. (2), "1971" for
"1968" in par. (3), and 115,000,000" for 15,000,000" in par. (6), respectively.
1966-Subsec. (c). Pub. L. 89-769 added subsec. (c).
1965-Subsec. (a). Pub. L. 89-240 designated existing provisions as par. (1), struck out "including the
development of recreational facilities" after "shifts in land use", substituted "drainage or waste disposal
facilities" for "drainage facilities", inserted "and recreational developments", deleted provisions which
prohibited loans which would cause an association's unpaid principal indebtedness to exceed $500,000,
in the case of direct loans and $1,000,000 in the case of insured loans at any one time, and added pars.
(2) to (10).
1962-Subsec. (a). Pub. L. 87-703 authorized loans to be made or insured to provide for the application or
establishment of shifts in land use including the development of recreational facilities.
EFFECTIVE DATE OF 2008 AMENDMENT

Amendment of this section and repeal of Pub. L. 110-234 by Pub. L. 110-246 effective May 22, 2008, the
date of enactment of Pub. L. 110-234, except as otherwise provided, see section 4 of Pub. L. 110-246, set
out as an Effective Date note under section 8701 of this title.
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Amendment by section 7511(c)(3) of Pub. L. 110-246 effective Oct. 1, 2009, see section 7511(c) of Pub.
L. 110-246, set out as a note under section 1522 of this title.
EFFECTIVE DATE OF 1991 AMENDMENT

Amendment by section 701(a) of Pub. L. 102-237 effective as if included in the provision of the Food,
Agriculture, Conservation, and Trade Act of 1990, Pub. L. 101-624, to which the amendment relates, and
amendment by section 701(h)(1)(A), (B) of Pub. L. 102-237 to any provision specified therein effective as if
included in act that added provision so specified at the time such act became law, see section 1101(b)(6),
(c) of Pub. L. 102-237, set out as a note under section 1421 of this title.
EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-355 effective Oct. 1, 1980, see section 10 of Pub. L. 96-355, set out as an
Effective Date note under section 2204b of this title.
EFFECTIVE DATE OF 1978 AMENDMENT

Pub. L. 95-334, title I, §105, Aug. 4, 1978, 92 Stat. 421 , provided that the amendment made by that
section is effective Oct. 1, 1978.
EFFECTIVE DATE OF 1970 AMENDMENTS

Pub. L. 91-617, §1(b), Dec. 31, 1970,84 Stat. 1855, provided that: "The amendment made by subsection
(a) [amending this section] shall apply to the insured loans sold out of the Agricultural Credit Insurance
Fund after the date of the enactment of this Act [Dec. 31, 1970]."
Amendment by Pub. L. 91-606 effective Dec. 31, 1970, see section 304 of Pub. L. 91-606, set out as a
note under section 165 of Title 26, Internal Revenue Code.
EFFECTIVE DATE OF 1966 AMENDMENT

Amendment by Pub. L. 89-769 applicable with respect to any major disaster occurring after Oct. 3, 1964,
see section 14 of Pub. L. 89-769.
TRANSFER OF FUNCTIONS

Powers, duties, and assets of agencies, offices, and other entities within Department of Agriculture
relating to rural development functions transferred to Rural Development Administration by section
2302(b) of Pub. L. 101-624.
ASSISTANCE IN RURAL ALASKA

Pub. L. 106-387, §1(a) [title VII, §736], Oct. 28, 2000, 114 Stat. 1549, 1549A-33, provided that:
"Notwithstanding any other provision of law, for any fiscal year, in the case of a high cost, isolated rural
area of the State of Alaska that is not connected to a road system"(1) in the case of assistance provided by the Rural Housing Service for single family housing
under title V of the Housing Act of 1949 (7 [42] U.S.C. 1471 et seq.), the maximum income level for the
assistance shall be 150 percent of the average income level in metropolitan areas of the State;
"(2) in the case of community facility loans and grants provided under paragraphs (1) and (19),
respectively, of section 306(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a))
and assistance provided under programs carried out by the Rural Utilities Service, the maximum
income level for the loans, grants, and assistance shall be 150 percent of the average income level in
nonmetropolitan areas of the State;
"(3) in the case of a business and industry guaranteed loan made under section 310B(a)(1) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1932(a)(1)), to the extent permitted under that
Act, the Secretary of Agriculture shall"(A) guarantee the repayment of 90 percent of the principal and interest due on the loan; and
"(B) charge a loan origination and servicing fee in an amount not to exceed 1 percent of the
amount of the loan; and
"(4) in the case of assistance provided under the Rural Community Development Initiative for fiscal
year 2001 carried out under the rural community advancement program established under subtitle E of
the Consolidated Farm and Rural Development Act (7 U.S.C. 2009 et seq.), the median household
income level, and the not employed rate, with respect to applicants for assistance under the Initiative
shall be scored on a community-by-community basis."
TEMPORARY EXPANDED ELIGIBILITY OF CERTAIN TIMBER-DEPENDENT COMMUNITIES IN PACIFIC
NORTHWEST FOR LOANS AND GRANTS FROM RURAL DEVELOPMENT ADMINISTRATION
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Pub. L. 103-427, Oct. 31, 1994, 108 Stat. 4373, provided that:
"(a) ANDINGs.-Congress finds the following:
"(1) Timber-dependent communities in the Pacific Northwest have contributed significantly to the
economic needs of the United States and have helped ensure an adequate national supply of timber
and timber products.
"(2) A significant portion of the timber traditionally harvested in the Pacific Northwest is derived
from Federal forest lands, and these forests have played an important role in sustaining local
economies.
"(b) EXPANDED ELIGIBiLrry.-During the period beginning on the date of the enactment of this Act [Oct. 31,
1994] and ending on September 30, 1998, the terms 'rural' and 'rural area', as used in the Consolidated
Farm and Rural Development Act (7 U.S.C. 1921 et seq.), shall include any town, city, or municipality"(1) part or all of which lies within 100 miles of the boundary of a national forest covered by the
Federal document entitled 'Forest Plan for a Sustainable Economy and a Sustainable Environment',
dated July 1,1993;
"(2) that is located in a county in which at least 15 percent of the total primary and secondary labor
and proprietor income is derived from forestry, wood products, or forest-related industries such as
recreation and tourism; and
"(3) that has a population of not more than 25,000 inhabitants.
"(0 EFFECT ON STATE ALLOTMENTS OF FUNDS.-This section shall not be taken into consideration in allotting
funds to the various States for purposes of the Consolidated Farm and Rural Development Act (7 U.S.C.
1921 et seq.), or otherwise affect or alter the manner under which such funds were allotted to States
before the date of the enactment of this Act [Oct. 31, 1994]."
RURAL WASTEWATER TREATMENT CIRCUIT RIDER PROGRAM

Pub. L. 101-624, title XXIII, §2324, Nov. 28, 1990, 104 Stat. 4013 , directed Secretary to establish national
rural wastewater circuit rider grant program that was to be modeled after existing National Rural Water
Association Rural Water Circuit Rider Program that received funding from Farmers Home Administration
and authorized $4,000,000 for each fiscal year to carry out such program, prior to repeal by Pub. L. 104127, title VII, §703, Apr. 4, 1996, 110 Stat. 1108 .
INTEREST RATE RESTRUCTURING FOR CERTAIN BORROWERS

Pub. L. 100-233, title VI, §615(b)(2), Jan. 6, 1988, 101 Stat. 1682, provided that: "Effective July 29, 1987,
the interest rate charged on any loan of $2,000,000 or more made on such date under section 306 [7
U.S.C. 1926] to any nonprofit corporation shall be the interest rate quoted to such nonprofit corporation by
the Farmers Home Administration on June 22, 1987, in the request for obligation of funds made with
respect to the loan."
LEASE OF CERTAIN ACQUIRED PROPERTY

Pub. L. 100-233, title VI, §620, Jan. 6, 1988, 101 Stat. 1684, provided that: "Notwithstanding any other
provision of law, the Secretary of Agriculture may lease to public or private nonprofit organizations, for a
nominal rent, any facilities acquired in connection with the disposition of a loan made by the Secretary
under section 306 [7 U.S.C. 1926]. Any such lease shall be for such reasonable period of time as the
Secretary determines is appropriate."

1So in original.
2 So in original. Probably should be capitalized.
See References in Text note below.

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