Rural Development Modernization Act

This Act may be cited as the Rural Development Modernization Act.

Section 601(b)(3)(A)(ii) of the Rural Electrification Act of 1936 (7 U.S.C. 950bb(b)(3)(A)(ii)) is amended by striking 20,000 inhabitants and inserting 25,000 inhabitants (excluding populations described in subparagraphs (F) and (G) of such section).

Section 601(j)(2)(B) of such Act (7 U.S.C. 950bb(j)(2)(B)) is amended by striking 2,500 each place it appears and inserting 25,000.

Section 203(b) of the Rural Electrification Act of 1936 (7 U.S.C. 924(b)) is amended by striking 5,000 inhabitants and inserting 25,000 inhabitants (excluding populations described in subparagraphs (F) and (G) of section 343(a)(13) of the Consolidated Farm and Rural Development Act).

Section 306(a)(24)(D)(ii) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)(24)(D)(ii)) is amended by striking 20,000 and inserting 25,000.

Section 306A(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926A(e)) is amended—

(A) in paragraph (1)(A), by striking 10,000 and inserting 25,000; and

(B) in paragraph (2), by striking 3,000 and inserting 25,000.

Title V of the Housing Act of 1949 is amended—

(A) in section 520 (42 U.S.C. 1490)—

(i) in the first sentence—

(I) in clause (1), by striking 2,500 and inserting 25,000;

(II) in clause (2)—

(aa) by striking 2,500 and inserting 25,000; and

(bb) by striking 10,000 and inserting 25,000; and

(III) in clause (3)—

(aa) by striking 10,000 and inserting 25,000; and

(bb) by striking 20,000 and inserting 25,000; and

(ii) by striking the last sentence and inserting the following: In determining whether an area is rural or a rural area, the Secretary shall disregard the populations described in subparagraphs (F) and (G) of section 343(a)(13) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(13)).; and

(B) in section 533(d)(3)(C) (42 U.S.C. 1490m(d)(3)(C)), by striking 10,000 and inserting 25,000.

Section 343(a)(13)(I) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(13)(I)) is amended—

(1) in the subparagraph heading, by striking Limited exclusion and inserting Exclusion; and

(2) by striking The first 1,500 and inserting Populations of.

Section 343(a)(13) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(13)) is amended by striking subparagraphs (B) and (C) and redesignating subparagraphs (D) through (I) as subparagraphs (B) through (G), respectively.

Section 343(a)(13) of such Act (7 U.S.C. 1991(a)(13)) is amended—

(A) in subparagraph (A), by striking (I) and inserting (G);

(B) in subparagraph (D)(i), by striking (F) each place it appears and inserting (D); and

(C) in subparagraph (F), by striking clause (ii) and inserting the following:

The Secretary may, by regulation only, consider an area described in clause (i)(I) of this subparagraph not to be a rural area for purposes of subparagraph (A).

(C) .

Section 343(a)(13)(D)(iii) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(13)(D)(iii)) is amended by redesignating subclauses (III) through (VII) as subclauses (IV) through (VIII), respectively, and inserting after subclause (II) the following:

(III) disregard the populations described in subparagraphs (F) and (G) in determining whether part of an area is rural in character;

.

Section 343(a)(13)(D)(iii)(V) of such Act (7 U.S.C. 1991(a)(13)(D)(iii)(V)) is amended by striking (IV) and inserting (V).

Section 609(a)(5) of the Public Utility Regulatory Policies Act of 1978 (7 U.S.C. 918c(a)(5)) is amended by striking 10,000 inhabitants and inserting 25,000 inhabitants (excluding populations described in subparagraphs (F) and (G) of section 343(a)(13) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(13)).

The Reclamation Rural Water Supply Act of 2006 (43 U.S.C. 2401 et seq.) is amended—

(1) in section 102(9)(C)—

(A) in clause (i) by striking or;

(B) in clause (ii), by striking structures. and inserting structures; or; and

(C) by adding at the end the following:

(iii) a project that is designed to serve an area described in subparagraph (F) or (G) of section 343(a)(13) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(13)).

(C) ; and

(2) in section 202(6)—

(A) by redesignating subparagraphs (B) and (C) as subparagraphs (D) and (E) respectively; and

(B) by inserting after subparagraph (A) the following:

(B) a rural water project, or rural water supply project that does not otherwise meet the definition of a rural water supply project under section 102(9), authorized under—

(i) section 1110 of division FF of the Consolidated Appropriations Act, 2021 (Public Law 116–260); or

(ii) any other Federal statute;

(C) any project authorized for an Indian Tribe under part III of subtitle A of title X of the Omnibus Public Land Management Act of 2009 (Public Law 111–11);

(B) .

(1) Section 601(c)(3)(D)(ii) of the Rural Electrification Act of 1936 (7 U.S.C. 950bb(c)(3)(D)(ii)) is amended by inserting, including any such communities in a territory or possession of the United States before the period.

(2) Section 601(d)(4) of such Act (7 U.S.C. 950bb(d)(4)) is amended—

(A) in the subsection heading, by inserting, territorial, before and local; and

(B) in the text, by inserting, territorial, before or local.

Section 604(a)(3)(A)(i)(III) of the Rural Electrification Act of 1936 (7 U.S.C. 950bb–3(a)(3)(A)(i)(III)) is amended by inserting or territory of the United States before the semicolon.

Section 310B(e)(1)(B) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)(1)(B)) is amended by inserting the Commonwealth of the Northern Mariana Islands, before and the.

Each of sections 343(a)(6) and 381A(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(6) and 2009(1)) is amended by striking Trust Territory of the Pacific Islands and inserting the Republic of the Marshall Islands, the Federated States of Micronesia, or the Republic of Palau, pursuant to the terms of the applicable Compact of Free Association with the United States.

Title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.) is amended—

(1) in section 501 (42 U.S.C. 1471)—

(A) in subsection (a), by striking and in the Territories of Alaska and Hawaii and in the Commonwealth of Puerto Rico, the Virgin Islands, the territories and possessions of the United States, and the Trust Territory of the Pacific Islands and inserting, including any territory or other possession of the United States; and

(B) in subsection (b)(4), by striking the Northern Mariana Islands, and the Trust Territory of the Pacific Islands and inserting and the Northern Mariana Islands;

(2) in section 502(h)(16)(D) (42 U.S.C. 1472(h)(16)(D)), by striking the Trust Territories of the Pacific,;

(3) in section 520, by striking but not in excess of 20,000; and

(4) in section 533(d)(3)(C), by striking below 10,000 and inserting below 25,000.

(a) Section 748 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2002 (7 U.S.C. 918b) is amended by inserting a comma after Service.

(b) The Rural Electrification Act of 1936 is amended—

(1) in section 305(d)(3)(C) (7 U.S.C. 935(d)(3)(C)), by striking (2)(A)(iii) and inserting (2)(A)(ii);

(2) in section 306A(e) (7 U.S.C. 936a(e)), by striking transfered and inserting transferred;

(3) in section 601(e)(4)(C)(i) (7 U.S.C. 950bb(e)(4)(C)(i)), by adding and at the end;

(4) in section 603(c)(1)(A) (7 U.S.C. 950bb–2(c)(1)(A)), by striking maximum and inserting minimum; and

(5) in section 701(a) (7 U.S.C. 950cc(a)), by striking the first comma.

(c) The Consolidated Farm and Rural Development Act is amended—

(1) in section 306(a)(20)(E) (7 U.S.C. 1926(a)(20)(E)), by striking states and inserting States;

(2) in section 307(a)(6)(B)(i) (7 U.S.C. 1927(a)(6)(B)(i)), by striking the comma and inserting a semicolon;

(3) in section 310B(e)(4)(C)(vi) (7 U.S.C. 1932(e)(4)(C)(vi)), by striking center and inserting centers;

(4) in section 310B(i)(1)(A) (7 U.S.C. 1932(i)(1)(A)), by inserting section before 501(a);

(5) in section 310E(d)(4)(C) (7 U.S.C. 1935(d)(4)(C)), by striking; and the second place it appears;

(6) in section 310F (7 U.S.C. 1936(e)(2)), in the paragraph heading, by striking Eligiblity and inserting Eligibility;

(7) in section 343(a)(11)(C) (7 U.S.C. 1991(a)(11)(C)), by striking operator and inserting operators;

(8) in section 373(b)(2)(A)(ii) (7 U.S.C. 2008h(b)(2)(A)(ii)), by striking chapters 11, 12, or 13, of Title and inserting chapter 11, 12, or 13 of title; and

(9) in section 381F (7 U.S.C. 2009e(a)), by striking Director and inserting director.

(d) The Housing Act of 1949 (42 U.S.C. 1471 et seq.) is amended—

(1) in section 501 (42 U.S.C. 1471), by transferring paragraph (5) of subsection (a) to subsection (b), adding such paragraph at the end of subsection (b), and redesignating such paragraph as paragraph (9);

(2) in section 515 (42 U.S.C. 1485)—

(A) in subsection (h)(2)(B), by inserting for after approval requirements; and

(B) in subsection (r)(1), by striking the Secretary— and inserting The Secretary—;

(3) in section 520 (42 U.S.C. 1490), in the first sentence, by striking (except in the cases of Pajaro, in the State of California, and Guadalupe, in the State of Arizona);

(4) in section 536(e) (42 U.S.C. 1490p)—

(A) in paragraph (1), in the matter preceding subparagraph (A), by inserting of after or (d); and

(B) in paragraph (2), by striking any section and inserting any subsection; and

(5) in section 538 (42 U.S.C. 1490r)—

(A) in subsection (d)(2), by striking low or moderate income and inserting low- or moderate-income; and

(B) in subsection (t), by striking chapter I and inserting chapter 1.

(e) The Reclamation Rural Water Supply Act of 2006 (43 U.S.C. 2401 et seq.) is amended—

(1) in section 106(e), by striking (1) In general and all that follows through After completion and inserting After completion;

(2) in section 107(e), by striking or a grant is made, to an organization and inserting or a grant is made to, an organization; and

(3) in section 202(2)(A), by striking of title 17, Code of Federal Regulation and inserting of title 17, Code of Federal Regulations.

The Secretary of Agriculture shall annually reassess and, if necessary, adjust the numerical threshold used in determining whether an area is a rural area for purposes of the provisions of law amended by this Act, taking into account population level and density trends identified by the Bureau of the Census, the classification of areas as metropolitan or non-metropolitan by the Office of Management and Budget, and, as appropriate, Rural-Urban Commuting Area codes of the Economic Research Service, and in doing so, may take account of regional differences.