South Iowa News

Representatives Zach Nunn of Iowa’s 3rd District and Don Davis of North Carolina’s 1st District have introduced the Revitalizing Rural Communities Act, a bipartisan bill aimed at strengthening rural areas through an extension of the US Department of Agriculture’s Rural Economic Development Loan and Grant (REDLG) program.

Rep. Nunn emphasized the importance of rural communities in Iowa, stating, “Rural communities are the backbone of Iowa. Whether it’s expanding broadband, building a new medical clinic, or growing a small business, the bipartisan investments we’re making will create jobs, improve Iowans’ quality of life, and help rural communities thrive.”

The REDLG program provides zero-interest loans and grants to rural utilities for local development projects. These funds can be passed on to small businesses, schools, nonprofits, and health care facilities to create or retain jobs and improve infrastructure.

Since its inception in 1989, the REDLG program has contributed over $1.1 billion in local investment in Iowa alone and helped create or retain more than 21,700 jobs. In 2022 specifically, Iowa electric cooperatives received more than $2.4 million from this program for facility improvements and economic growth initiatives. Nationally, REDLG has supported over 1,000 community development programs across the United States.

USDA Rural Development’s Iowa State Director Mike Sexton expressed support for the legislation: “President Trump and Secretary Rollins are committed to unleashing the potential for our rural communities here in Iowa and across the nation,” he said. “We’re grateful to Congressman Nunn for his leadership in supporting our rural cooperatives and communities with this extension of our Rural Economic Development Loan and Grant Program. This program is a critical component for revitalizing the rural economy for Iowa communities and families.”

Winterset City Administrator Drew Barden highlighted how REDLG funding has benefited his town: “Since 2007, REDLG has helped Winterset finance more than 20 projects, directly supporting over 60 local jobs. We’ve used it to expand the West Bridge Care & Rehab Center, build our electric substation, and support the Main Street businesses that keep our town running,” Barden said. “This is one of the best tools we have for rural development, and I’m grateful to Congressman Nunn for being a steadfast partner in ensuring small communities like Winterset can prosper.”

The proposed act would amend Section 313B of the Rural Electrification Act of 1936 by increasing annual funding authorization for REDLG to $12 million from fiscal years 2026 through 2030.