H.R. 8146 — Rural Utilities Service Modernization Act

This section establishes a secure, web-based platform, to be operated and maintained by the Secretary of Agriculture through the Rural Utilities Service (RUS), enabling recipients of RUS-administered federal financial assistance—such as loans and grants for rural electric, water, wastewater, and telecommunications infrastructure—to track their projects' status throughout the permitting and review process (including environmental reviews and interagency coordination). The platform must include (1) user access mechanisms for viewing status; (2) clear status indicators and estimated timelines for each phase; (3) document upload/download and correspondence functions; (4) automated notifications for advancing stages or required actions; and (5) coordination with specified agencies (i.e., other Department of Agriculture entities; Departments of Commerce, Defense, Energy, Interior, and Transportation; General Services Administration; U.S. Army Corps of Engineers; and relevant federal permitting authorities under the National Environmental Policy Act and National Historic Preservation Act), with RUS retaining responsibility for project status reporting. Within two years of enactment and annually thereafter, the Secretary must report to Congress on the platform's development, implementation, use, and performance. The section authorizes $30 million total for the platform, including $20 million to $24 million for FY2026 and FY2027 for development and $6 million to $10 million annually for FY2028 through FY2035 for operation and maintenance, with funds remaining available until expended.

This section establishes a grant program administered by the Rural Utilities Service (RUS)—which provides loans, loan guarantees, and grants for rural infrastructure including electric, water, wastewater, and telecommunications—for predevelopment planning, permitting, and early-stage project preparation activities under RUS programs. Grants, covering up to 75% of costs, are available to RUS-eligible entities unable to finance such activities otherwise and may be used for feasibility studies, design assistance, technical assistance and training, or partnerships with government entities; the section authorizes $15 million annually for FY2026 through FY2035, prohibits reimbursement of pre-grant costs, requires grantee annual reports, and directs RUS to issue guidelines while limiting administrative costs.

This section directs the Secretary of Agriculture, acting through Rural Development and the Rural Utilities Service (RUS), to prescribe final regulations within six months of enactment to improve timelines for notices of funding opportunity (NOFOs) for RUS-administered grants. The regulations must provide for (1) a uniform NOFO timeline applicable to all RUS grant programs, (2) sector-specific NOFO timelines for major program areas including electricity, telecommunications (including telephone and broadband), broadband distance learning and telemedicine, and water and waste disposal, or (3) an alternative approach to improve predictability and coordination if the prior options are not practicable; the Secretary must implement the regulations within 18 months of enactment.

This section requires the Administrator of the Rural Utilities Service to require all grant applications to be submitted electronically through an online system within two years of enactment, with alternative submission methods available for applicants unable to apply electronically.

This section directs the Secretary of Agriculture to evaluate Rural Utilities Service (RUS) staff processes for reviewing applications, providing technical assistance, and monitoring awardees under RUS-administered programs (i.e., loans and grants for rural electric, water, wastewater, and telecommunications infrastructure) to maximize program efficiency and effectiveness. Two years after enactment, the Secretary and RUS Administrator must jointly submit a report to the House and Senate agriculture committees examining staff workload and efficiency; timeliness, consistency, and quality of technical assistance and award decisions; and setting forth recommendations to enhance the section 2 online permitting platform, expedite permitting for RUS-assisted projects, and strengthen rural service delivery.