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Strengthening Rural Cooperatives and Communities Act
4/1/2025, 8:06 AM
Summary of Bill HR 1951
The bill seeks to reauthorize funding for these grants, which provide financial assistance to rural cooperatives for activities such as feasibility studies, business plans, and leadership training. By supporting the development of cooperatives, the legislation aims to enhance the economic viability of rural communities and improve the quality of life for residents.
Overall, Bill 119 HR 1951 is focused on promoting the growth of rural cooperatives through continued financial support, with the goal of fostering economic development and job creation in rural areas. The bill emphasizes the importance of cooperatives in strengthening rural economies and aims to ensure that these organizations have the resources they need to thrive.
Congressional Summary of HR 1951
Strengthening Rural Cooperatives and Communities Act
This bill reauthorizes through FY2029 and modifies the Rural Cooperative Development Grant (RCDG) Program. This Department of Agriculture (USDA) program provides grants to nonprofit institutions to help individuals and businesses start, expand, or improve rural cooperatives and other mutually-owned businesses through Rural Cooperative Development Centers.
USDA must give preference to grants that commit to providing technical assistance and other services to socially vulnerable, underserved, or distressed communities. Under current law, USDA must give preference to underserved and economically distressed areas in rural areas.
In addition, USDA may give an additional preference to applications that commit to providing a 25% matching contribution for the center with private funds and in-kind contributions. Specifically, USDA may award the maximum points in application scoring criteria to applicants that satisfy this requirement.
Under the bill, cooperative development includes activities (e.g., outreach, education, training, and technical assistance) to support the startup, expansion, or ongoing sustainability of new and existing cooperatives. Current law does not define cooperative development.
The bill directs the RCDG interagency working group to submit an annual report to Congress on its activities.
Finally, the program currently includes cooperative research program requirements to collect data on the effects of all types of cooperatives on the national economy. Under the bill, USDA must analyze the data resulting from the research and include the data and analysis in the annual report to Congress.
