Rural Partnership and Prosperity Act

Bill Number: H.R. 6041
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: Agriculture and Food
Status: Introduced
Latest Action: 2025-12-05: Referred to the Subcommittee on Commodity Markets, Digital Assets, and Rural Development.
Last Updated: 2026-05-16T08:07:13Z

AI-Generated Summary

Purpose of the Legislation

The Rural Partnership and Prosperity Act (H.R. 6041) aims to support economic development and community building in rural areas by authorizing the U.S. Department of Agriculture (USDA) to award two types of grants: one for partnerships that coordinate investments in rural communities, and another for technical assistance to help rural organizations access federal resources. It also updates an existing federal network to improve coordination of rural programs across government agencies.

Key Provisions

Rural Partnership Program Grants (Section 3):
Establishes a grant program for multi-year awards (2–5 years) to eligible partnerships, focusing on coordinating federal, state, tribal, nonprofit, and private investments in rural areas.
Funding Allocation: Funds are distributed by formula to states based on rural poverty and population levels (no state gets more than 5% of total funds); at least 5% goes to Indian Tribes, with priority to high-poverty, low-population areas. Unused funds can be reallocated. If annual funding is $300 million or less, awards are competitive nationwide.
Eligible Applicants: Partnerships of at least two entities, such as local governments, nonprofits, cooperatives, for-profit businesses, universities, or Indian Tribes, that serve rural areas and show collaboration for development.
Allowed Uses of Funds:
Coordinate initiatives to avoid duplication.
Leverage non-federal resources.
Conduct planning and predevelopment.
Build public-private partnerships.
Support operations (e.g., staffing, but not for for-profits).
Provide capital for projects (up to 50% of grant).
Fund regional efforts, disaster recovery, or community investment plans.
Prohibited Uses: Funding for-profit staffing, buying/leasing real property, or non-rural activities.
Selection Priorities: Areas with population shifts, job losses, economic distress, low prior federal funding, or needs for job retention.
Matching Requirement: Grantees must provide 25% non-federal match (cash or in-kind), waivable for high-need areas like high-poverty or tribal communities (with congressional justification).
Administration: Coordinated with the Rural Partners Network; up to 2% of funds for USDA admin costs.

Rural Partnership Technical Assistance Grants (Section 4):
Competitive national grants (up to 5 years) to qualified intermediaries (nonprofits, private groups, or universities with rural development experience) to help rural communities with federal grants, economic projects, and planning.
Allowed Uses:
Train local staff on systems and grant management.
Identify consultants for infrastructure planning.
Coordinate with federal agencies.
Develop public-private partnerships.
Support predevelopment and grant writing.
Prohibited Uses: For-profit staffing, buying/leasing property or equipment, non-rural support, or research.
Selection Priorities: High-poverty nonmetropolitan areas or Indian Tribes with tribal government support.
Matching Requirement: 30% non-federal match, waivable for high-need areas (with congressional justification).
Administration: Up to 2% for USDA admin costs.

Rural Partners Network (Section 5):
Renames and expands the existing "Council on Rural Community Innovation and Economic Development" (from the 2018 Farm Bill) to the "Rural Partners Network," making it a successor entity.
Membership Changes: Adds new federal members, including the Federal Deposit Insurance Corporation, Appalachian Regional Commission, Consumer Financial Protection Bureau, Social Security Administration, and several regional commissions (e.g., Delta, Denali).
Expanded Duties: Focus on sharing best practices, providing policy advice, and now emphasizing efficiency improvements like reducing administrative burdens on rural applicants, streamlining federal funding processes, and simplifying applications.
New Coordination Authority: Allows the USDA Secretary (as chair) to pursue innovative strategies with other agencies, prioritizing easier access for resource-limited communities, early technical help to cut costs, partnerships for better returns, user feedback in program design, and aid for economically distressed areas.

General Funding: Authorizes "such sums as necessary" for both grant programs, without specified annual amounts.

Significant Changes to Existing Law

Amends Section 6306 of the Agriculture Improvement Act of 2018 by renaming the council to a "network," adding members, expanding its purposes to include administrative efficiencies and streamlined funding access, and introducing new cross-agency coordination powers.
Introduces entirely new grant programs (Sections 3 and 4) not previously authorized, building on but separate from existing USDA rural development tools.
Ensures at least 5% of partnership grants go to Indian Tribes, a new dedicated allocation.

Potential Impacts

On Government Agencies: Increases USDA's role in rural coordination, potentially reducing duplication across federal programs (e.g., via the Network). Adds administrative duties but allows 2% retention for costs; may streamline processes for agencies like those newly added to the Network, leading to more efficient rural funding distribution.
On Citizens: Benefits rural residents, especially in high-poverty or distressed areas, by enabling local partnerships to attract investments, plan developments, recover from disasters, and access federal aid more easily. Could create jobs, stabilize economies, and improve community infrastructure without direct costs to individuals.
On International Relations: No direct impacts, as the bill focuses solely on domestic rural U.S. areas.

Main Stakeholders Affected

Rural Communities and Residents: Primary beneficiaries, particularly in economically challenged, low-population, or disaster-affected areas.
Indian Tribes: Guaranteed funding share and priorities, enhancing tribal self-determination in rural development.
Local Governments and Partnerships: Municipalities, counties, nonprofits, cooperatives, businesses, and universities that form applicant groups.
Federal Agencies: USDA leads implementation; Network expansion involves broader interagency collaboration (e.g., FDIC for financial access, regional commissions for targeted aid).
Intermediary Organizations: Nonprofits and universities providing technical assistance to build local capacity.

Notable Legal, Constitutional, or Political Implications

Legal: Establishes clear eligibility, matching, and waiver rules to ensure fair distribution, with congressional oversight via justifications for waivers. Builds on existing definitions (e.g., from the Consolidated Farm and Rural Development Act) for consistency, avoiding conflicts with prior laws.
Constitutional: Aligns with Congress's spending power under Article I to promote general welfare through rural aid; respects tribal sovereignty by incorporating Indian Self-Determination Act definitions and dedicated funding.
Political: Promotes bipartisan rural investment (introduced by a Democrat and Republican), potentially reducing urban-rural divides by prioritizing underserved areas. Could influence future farm bills by formalizing the Rural Partners Network as a key coordination tool, though funding depends on annual appropriations, leaving implementation vulnerable to budget priorities.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Salinas, Andrea [D-OR-6]

Cosponsors (5)

Rep. Valadao, David G. [R-CA-22], Rep. McClain Delaney, April [D-MD-6], Rep. Costa, Jim [D-CA-21], Rep. Davis, Donald G. [D-NC-1], Rep. Gottheimer, Josh [D-NJ-5]

Recent Actions

2025-12-05: Referred to the Subcommittee on Commodity Markets, Digital Assets, and Rural Development.
2025-11-12: Referred to the House Committee on Agriculture.
2025-11-12: Introduced in House
2025-11-12: Introduced in House

Bill Versions

Rural Partnership and Prosperity Act — issued 2025-11-12 — PDF (18 pages)