H.R. 8389: Rural Area Population Act

This bill, known as the Rural Area Population Act, aims to establish a consistent definition of "rural area" for all rural development programs overseen by the U.S. Department of Agriculture (USDA). The key provisions of the bill are outlined below:

1. Uniform Definition of Rural Area

The bill proposes to amend existing laws to clarify the definition of "rural area." It specifically makes the following changes:

• Eliminates the term "urbanized" and replaces it with "urban" in various sections of the law.
• Removes specific subsections that previously outlined certain criteria for rural designation.
• Redefines associated terms to ensure consistency across USDA programs.

2. Amendments to Existing Laws

The bill makes several amendments to the following acts:

• Rural Electrification Act of 1936: The amendments align the definition of a rural area with the revised definition in the Consolidated Farm and Rural Development Act, incorporating new provisions for loan eligibility.
• Housing Act of 1949: Changes ensure that the term "rural area" used in this act aligns with the new definition established in the aforementioned acts.

3. Authority for Designating Rural Areas

The bill grants the Secretary of Agriculture the authority to designate areas that may not meet traditional definitions of rural but have characteristics such as:

• Persistent poverty (where at least 20% of the population lives below the poverty line).
• A high concentration of farmworker households.
• Significant gaps in infrastructure, such as access to water or reliable electricity.

These areas can be designated as rural for the purposes of federal assistance programs.

4. Designation of High-Need Rural Areas

The bill allows for small, distinct communities that are surrounded by urban areas to be classified as rural if they:

• Have at least a 20% poverty rate.
• Are serviced by households primarily engaged in agriculture.

This aims to ensure that these communities receive the necessary support and resources, even if they are geographically near urban developments.

5. Effective Date

The provisions laid out in this bill will take effect 180 days after it is enacted into law.

6. Rulemaking and Grandfather Clause

The Secretary of Agriculture is tasked with creating rules to implement these changes. Additionally, any rural designations established before the enactment of this bill will remain unchanged until after the 2030 Census data is available, protecting existing rural area designations from immediate alteration.

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