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 · 2025-09-18 · 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 at0:06:20

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 20240:08:52; later questioned witnesses on defederalizing IRP funds0:39:11 and fast-tracking small projects0:40:40.

Ranking Member Don Davis (D-NC)0:10:22: Called rural development "the heartbeat" of his 100%-rural first district0:10:48, cited a Nashville, NC fire station built with community facilities funding0:11:08, and later probed applicants' capacity constraints and grant-vs-loan burdens0:43:560:46:03.

Rep. Angie Craig (D-MN), Ranking Member, Full Committee0:12:52: Argued the "one big beautiful bill" cuts Medicaid by nearly $1 trillion and would raise rural ACA premiums up to 90%0:14:390:15:08; later cited six southeast Minnesota clinics closing and roughly 700 rural hospitals nationally at risk from reconciliation cuts0:56:030:56:26.

Mrs. Bette Brand, former USDA Deputy Under Secretary for Rural Development0:19:53: Said RD manages over $200 billion in loans/guarantees/grants, delivering $40 billion annually to communities under 50,0000:20:16; cited the B&I program creating 750,000 jobs from 2014-2022 at $438 federal cost per job0:21:29, and noted over 90% of B&I budget authority was used in 2023-20240:23:34.

The Honorable Paul Heimel, Potter County, PA Commissioner0:24:48: Said Potter County has under 16,000 residents and USDA has funded 95 projects there since 20150:25:34; proposed four reforms — fast-track for small projects, eligible pre-development costs, a single online portal, and rural capacity building0:26:57; later described a 7-county maternity care desert after a local hospital closed birthing services0:57:56.

Ms. Lynne (Keller) Forbes, SECOG Executive Director0:29:41: Explained RDOs serve as intermediaries writing grants and managing projects0:31:02; proposed defederalizing IRP funding after 7 years to reduce costly A-133 audits0:39:19; said South Dakota requested $2.2 million in IRP funds against a $9 million national allocation0:48:09.

The Honorable Xochitl Torres Small, former USDA Deputy Secretary0:34:55: 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 calls0:36:050:36:19; urged shifting from siloed programs to investing in community strategies0:36:58; later cited $155 billion in lost rural hospital spending from Medicaid cuts1:00:09.

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 there0:50:29; asked about meat/poultry processing capacity0:53:12 and declining rural cell service0:54:31.

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 funding1:01:251:02:55; discussed the rural business investment program filling capital gaps CDBG and SRF cannot1:04:34.

Rep. David Scott (D-GA)1:06:10: Said rural communities face "man-made attacks" from staff cuts and budget reductions1:07:05; pressed witnesses on why rural communities struggle to access federal grants1:07:32.

Rep. Tracey Mann (R-KS)1:11:24: Represents 60 rural Kansas counties; asked about bundling small projects into single applications1:12:40 and backend technology gaps across USDA portals1:15:42.

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 issue1:18:15, and stated 26 of Alabama's 52 rural hospitals are at risk of closure, 22 at immediate risk1:21:26.

Rep. Brad Finstad (R-MN)1:21:56: Praised bipartisan committee culture1:22:20; discussed his Investing in Rural America Act to let Farm Credit partner with other lenders on facilities like hospitals and child care1:24:44; noted outdated USDA IT systems create a "disconnect" for applicants1:26:26.

Rep. April McClain Delaney (D-MD)1:27:39: Highlighted rural broadband, warning proposed cuts would eliminate the Reconnect program despite bipartisan support1:29:00; asked about staffing reductions' effect on farm bill implementation1:30:36.

Rep. Mark Messmer (R-IN) — labeled "Mr. Meer" in transcript1:32:46: Cited farmers budgeting $180/acre losses this season1:32:46; asked about the BioPreferred program1:33:15 and USDA community facilities funding for child care centers, noting a constituent contacted 45 providers before finding availability1:34:58.

Rep. Josh Riley (D-NY) — labeled "Mr. Manion" in transcript1:38:43: Described Oneida High School's flooding-driven closure and shift to hybrid learning1:39:12; asked about community facilities funding to harden rural schools against extreme weather1:40:02 and broadband deployment flexibility1:41:15.

Rep. Mike Taylor (R-OH)1:43:26: Said some southern Ohio Appalachian constituents still haul water to their homes1:42:52; asked about water infrastructure funding1:43:46 and the new $50 billion rural health transformation program1:46:12.

Rep. Zach Nunn (R-IA)1:47:48: Discussed his Rural Microentrepreneurial Assistance Program Act to raise loan caps from $50,000 to $75,0001:49:04 and his work with Rep. Davis on the Revitalizing Our Rural Communities Act1:49:04; asked about Reconnect's technology-neutral approach1:51:10.

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 upgrades1:53:471:54:18; asked how constituents can better identify available RD programs1:54:18.

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 revenue0:21:290:21:55.

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 months0:36:050:36:34.

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 hospitals0:14:390:15:080:56:26.

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 home0:57:560:58:18.

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 status1:08:521:09:20.

Figures stated Alabama has 52 rural hospitals remaining, 26 rated at risk of closure and 22 of those at immediate risk1:21:26.

Torres Small cited an estimated $155 billion in lost spending to rural hospitals from Medicaid cuts, plus stranded soybean exports from tariff disputes1:00:091:00:30.

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 minutes1:26:261:26:53.

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 change0:39:190:40:08.

Bresnahan cited nearly $45 million in RD investment reaching northeastern Pennsylvania last year, including an $8.7 million water/sewer loan to Exeter Borough1:53:471:54:18.

Metadata

CommitteeHouse Agriculture Subcommittee on Commodity Markets, Digital Assets, and Rural Development
Chamber / CongressHouse · 119th Congress
Date2025-09-18
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