U.S. Sen. Rob Portman (R-OH) last week introduced a bipartisan bill that would expand rural cooperatives’ access to broadband grants and Federal Emergency Management Agency (FEMA) disaster relief.
Sen. Portman on April 4 sponsored the Revitalizing Underdeveloped Rural Areas and Lands (RURAL) Act, S. 1032, with cosponsor U.S. Sen. Tina Smith (D-MN), which would amend the Internal Revenue Code of 1986 to modify the definition of income for purposes of determining the tax-exempt status of certain corporations, according to the congressional record.
If enacted, S. 1032 specifically would ensure that rural co-ops could access federal government funds to provide their members with resources like broader access to high-speed internet or repairs to the electrical grid, according to Sen. Portman’s statement.
“In today’s technology-dependent world, we must do more to bring high-speed internet and stronger grid infrastructure to the rural areas of our country,” Sen. Portman said on Thursday. “Tax-exempt rural co-ops provide these important services to parts of the country where access to reliable electricity and high-speed internet is the most limited and they rely heavily on grants to perform these services.”
Sen. Portman added that without S. 1032, many co-ops could miss out on federal grant income or disaster assistance and, in turn, hurt their “efforts to promote economic development and job creation in these rural areas.”
Sen. Smith said that when she heard from several Minnesota cooperatives at risk of losing their tax-exempt status, “I wanted to reverse that.”
S. 1032, she said, would ensure that co-ops retain such tax exemptions when they intend to expand rural broadband or to prepare for or respond to a disaster or emergency.
“I’m encouraged that this bill has bipartisan support as well in the House, and I’ll be pushing for this legislation to become law so we can make sure rural broadband keeps expanding,” said Sen. Smith, referring to plans by U.S. Reps. Adrian Smith (R-NE) and Terri Sewell (D-AL) to introduce a companion measure in their chamber.
S. 1032 has been referred to the U.S. Senate Finance Committee for consideration.