America’s rural cooperatives would receive a major boost to support development under bipartisan legislation introduced on Dec. 7 by U.S. Rep. David Valadao (R-CA).
“Rural areas like many in the Central Valley rely on cooperatives to provide some of the most important services to our communities, including health care, housing, and childcare,” Rep. Valadao said. “Rural cooperatives throughout the country, including here in the valley, need more federal support to stay afloat.”
The Supporting Rural Cooperatives and Communities Act, H.R. 6661, which Rep. Valadao cosponsored alongside bill sponsor U.S. Rep. Yadira Caraveo (D-CO), would reauthorize and improve the Rural Cooperative Development Grant (RCDG) Program.
The RCDG Program helps individuals and businesses start, expand, or improve rural cooperatives or other mutually owned businesses through Cooperative Development Centers, according to a bill summary provided by the lawmakers.
“I’m proud to introduce the Strengthening Rural Cooperatives and Communities Act with Rep. Caraveo to ensure our rural communities have the resources they need to thrive,” said Rep. Valadao.
If enacted, H.R. 6661 would reauthorize funding for RCDGs at $40 million annually from fiscal years 2024 to 2028, and ensure scoring for grants does not disadvantage under-resourced organizations, the summary says.
Additionally, the measure would reduce regulatory red tape by implementing multi-year grants, and prioritize grants for socially vulnerable, underserved, or distressed communities.
The Working Group on Cooperative Development also would be required under H.R. 6661 to submit an annual report detailing its activities to Congress, states the summary.
“Rural cooperatives in Colorado and around the country need more support,” said Rep. Caraveo. “I’m proud to be joined by Rep. Valadao in introducing the bipartisan Strengthening Rural Cooperatives and Communities Act, which will provide desperately needed relief to rural cooperatives and invest in underserved rural communities who need it most.”
H.R. 6661 has been referred for consideration to the U.S. House Agriculture Committee.