Rural Utilities Service Modernization Act

This Act may be cited as the Rural Utilities Service Modernization Act.

The Secretary of Agriculture, through the Rural Utilities Service, shall establish, operate, and maintain a secure, web-based platform that is designed to improve predictability and accountability for recipients of Federal financial assistance administered by the Rural Utilities Service, by enabling the recipients to track the status of their projects throughout the permitting and review process (including environmental and interagency coordination).

In carrying out subsection (a), the Secretary shall—

(1) require the Rural Utilities Service to determine, establish, and implement user access mechanisms enabling the recipients to view permitting and review status for their projects;

(2) require clear status indicators and estimated timelines for each phase of the permitting and review process for projects assisted by the Rural Utilities Service;

(3) ensure that, through the platform, documents may be uploaded and downloaded and applicants may correspond with relevant Rural Utilities Service offices;

(4) ensure that automated notifications are provided to recipients when a project advances to a new review stage or when additional information or action is required; and

(5) direct the Rural Utilities Service to coordinate, as appropriate, with—

(A) other agencies of the Department of Agriculture;

(B) the Department of Commerce;

(C) the Department of Defense;

(D) the Department of Energy;

(E) the Department of the Interior;

(F) the Department of Transportation;

(G) the General Services Administration;

(H) the U.S. Army Corps of Engineers; and

(I) any relevant Federal permitting authorities,

Within 2 years after the date of the enactment of this Act, and annually thereafter, the Secretary of Agriculture shall submit to Congress a written report that describes the development, implementation, use, and performance of the platform.

To carry out this section, there are authorized to be appropriated to the Secretary of Agriculture a total of not more than $30,000,000, of which—

(A) a total of not less than $20,000,000 and not more than $24,000,000 shall be available for fiscal years 2026 and 2027 for development of the platform; and

(B) a total of not less than $6,000,000 and not more than $10,000,000 shall be available for each of fiscal years 2028 through 2035 for operation and maintenance of the platform.

The amounts made available by paragraph (1) are authorized to remain available until expended.

The Secretary of Agriculture, acting through the Administrator of the Rural Utilities Service (in this section referred to as the Secretary), shall make grants to eligible entities for predevelopment planning, permitting, and early-stage project preparation activities under any program administered by the Rural Utilities Service.

An entity is eligible for a grant under this section if the entity is qualified to participate in a program administered by the Rural Utilities Service and is unable to finance predevelopment work by borrowing or other means.

The amount of each grant under this section shall be not more than 75 percent of the cost of the activities for which the grant is made.

The recipient of a grant under this section shall use the grant for pre-development activities such as—

(1) feasibility studies, permitting, design assistance, and other pre-development planning activities;

(2) technical assistance and training to improve planning and readiness for a program administered by the Rural Utilities Service; or

(3) participation in a partnerships with a Federal, State, Tribal, or local entity to support project preparation.

A grant under this section shall not be used to reimburse costs of work completed before the grant is made.

The Secretary shall issue guidelines relating to applications for grants under this section, selection of grantees, and administration of the grants.

In administering this section, the Secretary shall limit administrative costs incurred pursuant to this section, to ensure that funds made available to carry out this section are used for predevelopment activities to the maximum extent practicable.

The recipient of a grant under this section shall transmit annual reports to the Secretary on the activities funded with the grant and the outcomes of the activities.

To carry out this section, there are authorized to be appropriated not more than $15,000,000 for each of fiscal years 2026 through 2035.

Within 6 months after the date of the enactment of this Act, the Secretary of Agriculture, acting through Rural Development and the Administrator of the Rural Utilities Service, shall prescribe final regulations to improve timelines for notices of funding opportunity for grants administered by the Rural Utilities Service, that should provide for—

(1) a uniform notice of funding opportunity timeline applicable to all Rural Utilities Service grant programs;

(2) sector-specific notice of funding opportunity timelines for major program areas of the Rural Utilities Service, including—

(A) electricity;

(B) telecommunications, including telephone and broadband;

(C) broadband distance learning and telemedicine; and

(D) water and waste disposal; or

(3) if the approaches described in paragraphs (1) and (2) are not practicable, an alternative approach to improving predictability and coordination of notice of funding opportunity timelines.

The Secretary shall implement the final regulations within 18 months after the date of the enactment of this Act.

Within 2 years after the date of the enactment of this Act, the Administrator of the Rural Utilities Service shall require all applications for a grant administered by the Rural Utilities Service to be submitted electronically through an online system or, if such an applicant is unable to so submit such an application, provide alternative means for the applicant to submit the application.

The Secretary of Agriculture shall evaluate the processes used by the staff of the Rural Utilities Service to—

(1) review applications for assistance from programs administered by the Rural Utilities Service;

(2) provide related technical assistance; and

(3) monitor assistance awardees,

2 years after the date of the enactment of this Act, the Secretary of Agriculture and the Administrator of the Rural Utilities Service shall jointly prepare and submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that—

(1) examines, at a minimum—

(A) the workload of the staff of the Rural Utilities Service, the allocation of the workload, and the efficiency of the staff in reviewing applications and assisting applicants for assistance under the programs administered by the Rural Utilities Service; and

(B) the timeliness, consistency, and quality of technical assistance provided and award decisions made under the programs; and

(2) sets forth—

(A) recommendations to enhance the effectiveness of the online permitting platform established under section 2;

(B) an assessment of how permitting for projects assisted by the Rural Utilities Service could be expedited; and

(C) findings that could strengthen service delivery to rural communities.