Rural Utilities Service
| Company type | Government agency |
|---|---|
| Industry | Utilities, Telecommunications, Water management |
| Predecessor | Rural Electrification Administration |
| Founded | 1935 |
| Headquarters | United States |
| Parent | United States Department of Agriculture (USDA) |
| Website | www |
The Rural Utilities Service (RUS) of the United States oversees initiatives that provide essential infrastructure and enhancements to rural regions, concentrating on electric power, telecommunications, and water and waste treatment services. It functions as a division within the USDA Rural Development branch of the United States Department of Agriculture (USDA). Originally founded in 1935 as the Rural Electrification Administration (REA), it was created as part of the New Deal to encourage the spread of electricity in rural areas.
Overview
RUS is responsible for administering several major programs:
- Water and Environmental: offers funding support for rural communities with populations up to 10,000 to develop drinking water systems, sanitary sewer services, solid waste management, and stormwater drainage infrastructure.
- Electric Programs: assist in sustaining, expanding, upgrading, and modernizing electric utility infrastructure in rural locations, including initiatives for energy conservation, efficiency improvements, and renewable energy integration.
- Telecommunications: promotes the establishment and enhancement of telecommunications networks in rural settings.
Financial assistance
Financial aid from RUS has reached nearly 890 rural electric utilities and about 800 rural telecommunications providers across 47 states as well as territories such as Puerto Rico, the Virgin Islands, Guam, the Marshall Islands, the Northern Mariana Islands, and the Federated States of Micronesia. Additionally, approximately 7,200 rural communities benefit from loans and grants aimed at water and waste facility development.
In 2023, under the Biden administration’s USDA leadership, RUS administered the ReConnect Program designed to broaden broadband Internet availability throughout rural America, including territories like the Marshall Islands.
Rural Electrification Administration
The agency began as the Rural Electrification Administration (REA), established through President Franklin D. Roosevelt’s Executive Order 7037 in 1935 with the goal of advancing electricity access in rural America. The 1936 Rural Electrification Act authorized federal lending for electrical distribution systems serving these areas.
During the 1930s, fewer than 11% of farms in the United States had electrical service compared to nearly 90% in countries such as France and Germany. Supported by this legislation, REA provided loans that enabled rural cooperatives to build their own power systems—becoming one of the most effective New Deal programs. By 1939, rural electric cooperatives funded primarily by REA loans served around 288,000 households; by 1952, almost all farms nationwide had electricity.
In 1949, REA’s loan authority was extended to include rural telephone cooperatives. Later, following the Department of Agriculture Reorganization Act of 1994, REA was incorporated into what is now known as the Rural Utilities Service (RUS).