Rural Development Modernization Act (H.R. 7609)

Summary

The Rural Development Modernization Act (H.R. 7609) is a bill introduced in the U.S. House of Representatives on February 20, 2026. The main purpose of the bill is to harmonize the population threshold for defining "rural communities" across various programs administered by the U.S. Department of Agriculture (USDA).

Key Provisions:

1. Increasing Population Thresholds: The bill would raise the population threshold for classifying an area as "rural" from 20,000 to 25,000 inhabitants for several USDA programs, including:

   • Broadband, telemedicine, and distance learning grants
   • Telephone service loans
   • Water, wastewater, and essential community facilities loans
   • Emergency and imminent community water assistance grants
   • Rural housing programs

2. Eliminating Lower Population Thresholds: The bill would eliminate lower population thresholds (e.g. 2,500, 3,000, 10,000) that currently exist for some USDA programs, setting a uniform 25,000-inhabitant threshold.

3. Excluding Incarcerated and Military Base Populations: The bill would direct the USDA to disregard populations on military bases and in correctional facilities when determining if an area is "rural in character" for program eligibility.

Potential Impact:

• Expands eligibility for USDA rural development programs to communities with populations up to 25,000 people, potentially benefiting more rural and exurban areas.
• Eliminates disparities in population thresholds across different USDA programs, streamlining administration and access.
• Ensures USDA's definition of "rural" excludes large institutional populations that may skew an area's character, better targeting aid to genuinely rural communities.

The bill has been referred to several House committees for further consideration. If enacted, it could modernize and harmonize how the USDA defines and supports rural development nationwide.