H.R. 8389 — Rural Area Population Act

This section revises the definition of rural area in the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(13)) by replacing "urbanized" with "urban" in multiple subparagraphs, striking subparagraphs (B) and (C) that provided exceptions, simplifying certain exception rules, and redesignating remaining subparagraphs. It conforms the Rural Electrification Act of 1936 (7 U.S.C. 913 et seq.), which supports rural electric and telecommunications infrastructure, and Section 520 of the Housing Act of 1949 (42 U.S.C. 1490), which supports USDA rural housing programs, to use that revised definition. (Thus, this establishes a uniform rural area definition across these USDA rural development loan, guarantee, and grant programs.)

This section authorizes the Secretary of Agriculture, in consultation with the Director of the Bureau of the Census, to designate census tracts, census-designated places, or unincorporated areas recognized by local or tribal governments with fewer than 35,000 inhabitants as rural areas under the Consolidated Farm and Rural Development Act—regardless of location within an urban area—if they exhibit (1) persistent poverty (i.e., at least 20% of the population below the poverty line, as measured by the 1990, 2000, and 2010 decennial censuses); (2) a high concentration of farmworker households (i.e., a percentage significantly exceeding the U.S. or state average, as determined by the Secretary); or (3) a significant infrastructure gap (i.e., lack of access to potable water, wastewater treatment, or reliable electricity meeting federal standards, as determined by the relevant state or local health department and USDA Rural Development field office). (As background, the rural area definition determines eligibility for multiple USDA rural development programs providing loans and grants for housing, utilities, community facilities, businesses, and infrastructure.)

This section expands the definition of rural area under the Consolidated Farm and Rural Development Act to include high-need rural pockets—small, geographically distinct settlements (incorporated or not) surrounded by urban areas that lack urban services and have a poverty rate of at least 20 percent (including tribal lands and farmworker settlements)—by directing the Secretary to prioritize and maintain their eligibility using census tract-level indicators such as Rural-Urban Commuting Area codes. (Thus, these areas qualify for USDA rural development programs such as housing, business, and infrastructure loans and grants.) It defines farmworker settlement as an area where more than 50 percent of households derive primary income from agricultural labor or are headed by an individual who is or recently was employed in agriculture, as verified using American Community Survey data on industry and occupation and local data from state or tribal labor agencies.

This section (1) requires the Secretary of Agriculture to prescribe regulations necessary to implement the amendments made by this Act and (2) grandfathers rural area designations under section 343(a)(13) of the Consolidated Farm and Rural Development Act—used to determine eligibility for USDA rural development programs such as loans and grants—made prior to the Act's effective date, prohibiting changes due to the Act's amendments until 2030 decennial census data is available.