USDA's Rural Development: Delivering Vital Programs and Services to Rural America

Farm Economy and USDA OversightHouse Agriculture Subcommittee on Commodity Markets, Digital Assets, and Rural Development · September 18, 2025 · 119th Congress
The House Agriculture Subcommittee on Commodity Markets, Digital Assets, and Rural Development held this bipartisan hearing to examine how USDA Rural Development programs — including community facilities loans, business and industry (B&I) guarantees, value-added producer grants, and broadband programs like Reconnect — support rural communities, and to gather input ahead of farm bill reauthorization. Begins at ▶ 0:06:20
Transcript
Highlights

Title

USDA Rural Development programs, staffing cuts, and farm bill reauthorization

Purpose

The House Agriculture Subcommittee on Commodity Markets, Digital Assets, and Rural Development held this bipartisan hearing to examine how USDA Rural Development programs — including community facilities loans, business and industry (B&I) guarantees, value-added producer grants, and broadband programs like Reconnect — support rural communities, and to gather input ahead of farm bill reauthorization. Witnesses included two former senior USDA Rural Development officials and two local practitioners, who discussed program successes, staffing cuts, and proposed reforms. Begins at▶ 0:06:20

Who spoke

• Chairman Dale Strong Johnson (R)▶ 0:06:20: Opened by describing key RD programs (community facilities, value-added producer grants, rural economic development loans, rural business investment, micro-entrepreneur assistance)▶ 0:07:19 and noted most were reauthorized in the Farm, Food, and National Security Act of 2024▶ 0:08:52; later questioned witnesses on defederalizing IRP funds▶ 0:39:11 and fast-tracking small projects▶ 0:40:40.

• Ranking Member Don Davis (D-NC)▶ 0:10:22: Called rural development "the heartbeat" of his 100%-rural first district▶ 0:10:48, cited a Nashville, NC fire station built with community facilities funding▶ 0:11:08, and later probed applicants' capacity constraints and grant-vs-loan burdens▶ 0:43:56▶ 0:46:03.

• Rep. Angie Craig (D-MN), Ranking Member, Full Committee▶ 0:12:52: Argued the "one big beautiful bill" cuts Medicaid by nearly $1 trillion and would raise rural ACA premiums up to 90%▶ 0:14:39▶ 0:15:08; later cited six southeast Minnesota clinics closing and roughly 700 rural hospitals nationally at risk from reconciliation cuts▶ 0:56:03▶ 0:56:26.

• Mrs. Bette Brand, former USDA Deputy Under Secretary for Rural Development▶ 0:19:53: Said RD manages over $200 billion in loans/guarantees/grants, delivering $40 billion annually to communities under 50,000▶ 0:20:16; cited the B&I program creating 750,000 jobs from 2014-2022 at $438 federal cost per job▶ 0:21:29, and noted over 90% of B&I budget authority was used in 2023-2024▶ 0:23:34.

• The Honorable Paul Heimel, Potter County, PA Commissioner▶ 0:24:48: Said Potter County has under 16,000 residents and USDA has funded 95 projects there since 2015▶ 0:25:34; proposed four reforms — fast-track for small projects, eligible pre-development costs, a single online portal, and rural capacity building▶ 0:26:57; later described a 7-county maternity care desert after a local hospital closed birthing services▶ 0:57:56.

• Ms. Lynne (Keller) Forbes, SECOG Executive Director▶ 0:29:41: Explained RDOs serve as intermediaries writing grants and managing projects▶ 0:31:02; proposed defederalizing IRP funding after 7 years to reduce costly A-133 audits▶ 0:39:19; said South Dakota requested $2.2 million in IRP funds against a $9 million national allocation▶ 0:48:09.

• The Honorable Xochitl Torres Small, former USDA Deputy Secretary▶ 0:34:55: Warned staffing cuts have left some state offices at half capacity, Mississippi lost 90% of RD staff, and only 16 engineers remain nationally, delaying projects and unanswered calls▶ 0:36:05▶ 0:36:19; urged shifting from siloed programs to investing in community strategies▶ 0:36:58; later cited $155 billion in lost rural hospital spending from Medicaid cuts▶ 1:00:09.

• Rep. John Rose (R-TN)▶ 0:50:05: Noted 78 of Tennessee's 95 counties are rural and cited nearly $89 million in recent USDA RD investment there▶ 0:50:29; asked about meat/poultry processing capacity▶ 0:53:12 and declining rural cell service▶ 0:54:31.

• Rep. Frank Lucas (R-OK)▶ 1:00:56: Described Roger Mills County, OK shrinking from 14,000 residents in 1930 to 3,400 today, illustrating scarcity challenges for rural infrastructure funding▶ 1:01:25▶ 1:02:55; discussed the rural business investment program filling capital gaps CDBG and SRF cannot▶ 1:04:34.

• Rep. David Scott (D-GA)▶ 1:06:10: Said rural communities face "man-made attacks" from staff cuts and budget reductions▶ 1:07:05; pressed witnesses on why rural communities struggle to access federal grants▶ 1:07:32.

• Rep. Tracey Mann (R-KS)▶ 1:11:24: Represents 60 rural Kansas counties; asked about bundling small projects into single applications▶ 1:12:40 and backend technology gaps across USDA portals▶ 1:15:42.

• Rep. Shomari Figures (D-AL)▶ 1:16:35: Said 11 of 13 counties in his district are rural, described "straight piping" sewage as a persistent issue▶ 1:18:15, and stated 26 of Alabama's 52 rural hospitals are at risk of closure, 22 at immediate risk▶ 1:21:26.

• Rep. Brad Finstad (R-MN)▶ 1:21:56: Praised bipartisan committee culture▶ 1:22:20; discussed his Investing in Rural America Act to let Farm Credit partner with other lenders on facilities like hospitals and child care▶ 1:24:44; noted outdated USDA IT systems create a "disconnect" for applicants▶ 1:26:26.

• Rep. April McClain Delaney (D-MD)▶ 1:27:39: Highlighted rural broadband, warning proposed cuts would eliminate the Reconnect program despite bipartisan support▶ 1:29:00; asked about staffing reductions' effect on farm bill implementation▶ 1:30:36.

• Rep. Mark Messmer (R-IN) — labeled "Mr. Meer" in transcript▶ 1:32:46: Cited farmers budgeting $180/acre losses this season▶ 1:32:46; asked about the BioPreferred program▶ 1:33:15 and USDA community facilities funding for child care centers, noting a constituent contacted 45 providers before finding availability▶ 1:34:58.

• Rep. Josh Riley (D-NY) — labeled "Mr. Manion" in transcript▶ 1:38:43: Described Oneida High School's flooding-driven closure and shift to hybrid learning▶ 1:39:12; asked about community facilities funding to harden rural schools against extreme weather▶ 1:40:02 and broadband deployment flexibility▶ 1:41:15.

• Rep. Mike Taylor (R-OH)▶ 1:43:26: Said some southern Ohio Appalachian constituents still haul water to their homes▶ 1:42:52; asked about water infrastructure funding▶ 1:43:46 and the new $50 billion rural health transformation program▶ 1:46:12.

• Rep. Zach Nunn (R-IA)▶ 1:47:48: Discussed his Rural Microentrepreneurial Assistance Program Act to raise loan caps from $50,000 to $75,000▶ 1:49:04 and his work with Rep. Davis on the Revitalizing Our Rural Communities Act▶ 1:49:04; asked about Reconnect's technology-neutral approach▶ 1:51:10.

• Rep. Rob Bresnahan (R-PA)▶ 1:53:04: Cited nearly $45 million in RD funding to northeastern Pennsylvania last year, including $2 million for Greater Hazleton CAN DO and $8.7 million for Exeter Borough's water/sewer upgrades▶ 1:53:47▶ 1:54:18; asked how constituents can better identify available RD programs▶ 1:54:18.

Key moments

• Brand testified the B&I loan guarantee program created over 750,000 rural jobs from 2014-2022 at a federal cost of just $438 per job, and that a 1% increase in B&I investment yields a 0.55% increase in state sales tax revenue▶ 0:21:29▶ 0:21:55.

• Torres Small said Mississippi lost 90% of its rural development staff last year and only 16 engineers remain in the RD state system nationally, leaving vital projects stalled and phone calls unanswered for months▶ 0:36:05▶ 0:36:34.

• Craig said the reconciliation package (Medicaid cuts of nearly $1 trillion) combined with expiring ACA tax credits could raise rural health premiums up to 90% and close hundreds of rural hospitals▶ 0:14:39▶ 0:15:08▶ 0:56:26.

• Heimel said his UPMC-affiliated hospital closed maternity/birthing services, creating a "7-county maternity desert" in north-central Pennsylvania, and separately closed its nursing home▶ 0:57:56▶ 0:58:18.

• Forbes contrasted state-run funding processes (South Dakota's SRF gives quarterly, predictable decisions) with USDA RD's opaque, sometimes year-long application timelines with no visibility into status▶ 1:08:52▶ 1:09:20.

• Figures stated Alabama has 52 rural hospitals remaining, 26 rated at risk of closure and 22 of those at immediate risk▶ 1:21:26.

• Torres Small cited an estimated $155 billion in lost spending to rural hospitals from Medicaid cuts, plus stranded soybean exports from tariff disputes▶ 1:00:09▶ 1:00:30.

• Finstad said outdated USDA IT systems mean "we could play Oregon Trail on some of the USDA computer systems," while consumer loans can be approved on a phone in minutes▶ 1:26:26▶ 1:26:53.

• Forbes proposed "defederalizing" IRP funds after a 30-year term to remove costly A-133 audit requirements (citing $4,000-$6,000 extra cost per audit), modeled on a similar EDA change▶ 0:39:19▶ 0:40:08.

• Bresnahan cited nearly $45 million in RD investment reaching northeastern Pennsylvania last year, including an $8.7 million water/sewer loan to Exeter Borough▶ 1:53:47▶ 1:54:18.

Metadata

CommitteeHouse Agriculture Subcommittee on Commodity Markets, Digital Assets, and Rural Development
Chamber / CongressHouse · 119th Congress
DateSeptember 18, 2025
TypeHearing
Witnesses
Mrs. Bette Brand — Former Deputy Under Secretary, Rural Development, United States Department of Agriculture
The Honorable Paul Heimel — County Commissioner, Potter County, Pennsylvania Board of Commissioners
Ms. Lynne Forbes — Executive Director, South Eastern Council of Governments (SECOG)
The Honorable Xochitl Torres Small — Former Deputy Secretary, United States Department of Agriculture
Videoyoutube
Transcript307 caption blocks · 18,659 words · 1:59:30 runtime
EventCongress.gov 118602