H.R. 6041 — Rural Partnership and Prosperity Act

This section defines, for purposes of the Act, (1) "Indian Tribe" as having the meaning given that term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304); (2) "rural" and "rural area" as having the meanings given those terms in section 343(a)(13)(A) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(13)(A)); and (3) "Secretary" as the Secretary of Agriculture.

This section establishes the Rural Partnership Program to make multiyear grants of 2 to 5 years to eligible partnerships serving rural areas for coordinating federal, nonprofit, and for-profit investments, subject to appropriations. Grants are awarded by state rural development offices (national office for tribal awards or competitive process if appropriations are ≤$300 million); funding is allocated by formula to states based on nonmetropolitan poverty and population levels (≤5% per state), with ≥5% to Indian tribes (prioritizing higher-poverty, lower-population areas), a small-state exception, and reallocation of unused funds. Eligible applicants are partnerships of ≥2 entities (e.g., state/local governments, nonprofits, cooperatives, for-profits, institutions of higher education, Indian tribes) with significant rural ties that demonstrate cooperation for asset-based development. Grant funds may be used for (1) coordinating initiatives to reduce duplication; (2) leveraging non-federal resources; (3) predevelopment and planning; (4) public-private partnerships; (5) operational staffing (not for for-profits); (6) project capital (≤50% of grant); (7) regional projects; (8) economic recovery from disasters; and (9) developing strategic community investment plans under 7 U.S.C. 2008v(d).

This section establishes a competitive grant program, subject to appropriations, administered nationally by the Under Secretary for Rural Development, to award grants of up to five years to qualified private or nonprofit intermediary organizations—including institutions of higher education with relevant programs—for advising and assisting rural community organizations with federal grant management and financial systems, housing or community economic development projects, and placemaking plans and federal grant applications. Grant recipients may use funds for capacity-building activities in rural areas, including (1) training local staff on systems development; (2) identifying technical consultants for infrastructure planning; (3) facilitating federal-local coordination; (4) developing public-private partnerships; (5) project development and predevelopment; and (6) grant writing and management. Ineligible uses include funding for-profit staffing, purchasing or leasing real property or equipment, non-rural activities, or research and development. The Secretary may prioritize applicants serving high-poverty nonmetropolitan areas or Indian Tribes with tribal government support and must require a 30% non-federal match (waivable for demonstrated need, with justification provided to the House and Senate Agriculture Committees). The section authorizes such sums as necessary and permits the Secretary to retain up to 2% for program administration.

This section renames the Council on Rural Community Innovation and Economic Development (an interagency body established under Section 6306 of the Agriculture Improvement Act of 2018 to coordinate federal rural innovation and economic development initiatives) as the Rural Partners Network, establishes the Network as the council's successor, and makes conforming terminology changes throughout the section. It revises Network membership by striking 11 agencies or entities and adding 8 new members: the Federal Deposit Insurance Corporation; Appalachian Regional Commission; Consumer Financial Protection Bureau; Social Security Administration; Delta Regional Authority; Denali Commission; Northern Border Regional Commission; and Southeast Crescent Regional Commission. The section expands the Network's purposes to improve the efficiency of federal assistance to rural communities by (1) reducing administrative burdens on rural communities pursuing federal funding, (2) improving administrative efficiency of federal economic development programs serving rural communities, and (3) streamlining and simplifying federal funding application processes for rural communities. It further authorizes the Secretary of Agriculture, as Network chair, to implement innovative cross-agency coordination strategies for programs serving rural areas, prioritizing (1) improving access for resource-constrained rural communities, (2) providing early technical assistance to reduce duplicative applications and federal administrative costs, (3) leveraging partnerships with local, state, philanthropic, and private entities, (4) integrating stakeholder and user experience into program design, and (5) targeting economically distressed areas.