Overview
Title
To amend the Consolidated Farm and Rural Development Act to reauthorize and expand the Rural Innovation Stronger Economy grant program.
ELI5 AI
This bill wants to give more money to help small towns grow, increasing from $10 million to $50 million each year. It focuses on helping really small towns with fewer than 10,000 people by making sure they get a piece of the money too.
Summary AI
S. 4342 proposes to amend the Consolidated Farm and Rural Development Act to reauthorize and expand the Rural Innovation Stronger Economy (RISE) grant program. The bill aims to modify funding provisions by increasing the grants, focus on a wider array of rural communities, especially those with populations under 20,000, and ensure a portion is awarded specifically to communities with fewer than 10,000 residents. It also removes some previous requirements related to industry clusters, aiming for a broader representation of industries through the grants. The funding for these efforts is set at $50 million annually from 2025 to 2029.
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AnalysisAI
The proposed legislation, S. 4342, aims to amend the Consolidated Farm and Rural Development Act to reauthorize and expand the Rural Innovation Stronger Economy (RISE) grant program. This bill seeks to reinvigorate the RISE program with a focus on rural areas, intending to provide better support and resources to economically declining regions. By doing so, it hopes to stimulate economic growth and stability in small rural communities with populations under 20,000, particularly targeting those with fewer than 10,000 people.
General Summary of the Bill
The main goal of the Rural Innovation Stronger Economy (RISE) Reauthorization Act of 2024 is to continue and enhance financial support to rural communities. It proposes a dramatic increase in funding, from $10 million annually to $50 million yearly, for fiscal years 2025 through 2029. Additionally, the bill modifies the criteria for grant allocation to ensure wider and more inclusive distribution, with specific attention to the smallest and often most disadvantaged rural communities.
Summary of Significant Issues
Several significant issues arise from this proposed legislation:
Increased Spending: The authorization for increased appropriations is notably substantial, potentially leading to concerns about fiscal responsibility. Without proper oversight, this significant uptick in funding could be viewed as wasteful.
Ambiguity in Economic Focus: By removing language referring to "industry clusters," the bill could cause confusion about which economic areas should receive priority, potentially creating uncertainty in what types of industries are supported.
Vague Language and Eligibility: The use of phrases such as "target a broad base of rural community types" is somewhat ambiguous, which might make it challenging to define eligibility or prioritize grant recipients.
Unclear Industry Base Requirements: The call for a "diverse set of industry bases" lacks specific guidelines, which could complicate the implementation of the program and impede equitable funding distribution.
Impact on the Public and Stakeholders
Public Impact: The public, particularly those residing in rural areas, might see potential positive changes through enhanced economic opportunities as a result of the grant program. Small businesses and local economies could benefit from the additional resources aimed at fostering innovation and economic growth in their communities.
Stakeholders Impact: For small rural communities, this bill could potentially offer a much-needed economic boost. With an increased budget aimed at these areas, particularly those with populations of fewer than 10,000, local stakeholders, such as community leaders and development organizations, could have greater capacity to support economic development projects.
However, there may be challenges faced by stakeholders in interpreting and applying the criteria due to the aforementioned vagueness in language. Stakeholders need clear guidelines to ensure efficient and appropriate use of funds, maximizing benefits while avoiding misuse or misallocation.
In conclusion, while the bill offers promising opportunities for rural areas, it also introduces a set of challenges that must be addressed to ensure its successful implementation. Stakeholders at all levels must collaborate to interpret the bill’s provisions effectively, ensuring that the objectives of the legislation are fully realized.
Financial Assessment
The proposed bill, S. 4342, seeks to amend the Consolidated Farm and Rural Development Act, specifically focusing on financial allocations for the Rural Innovation Stronger Economy (RISE) grant program. This legislation aims to increase support for rural communities by adjusting funding levels and targeting grant distribution more precisely.
Authorization of Funding
The bill authorizes significant financial allocations for the RISE grant program. It specifies that $10,000,000 is authorized for each fiscal year from 2019 through 2024. However, a substantial increase is slated for future years, with the authorization of $50,000,000 annually from 2025 through 2029. This amendment reflects a commitment to expanding support for rural economic initiatives but also introduces potential concerns about financial accountability and effective utilization of such funds. The notable rise in allocated funds underscores the need for robust oversight to ensure that the additional money is used effectively and justifiably.
Issues with Financial Allocation
The increase in authorized funding from $10 million to $50 million annually represents a 400% rise, which may raise eyebrows concerning potential wasteful spending if not accompanied by clear justifications and accountability measures. The substantial hike in funding necessitates effective financial oversight to assure taxpayers that the funds are being spent wisely and are achieving the intended outcome of supporting rural economies.
Targeting and Eligibility
The bill introduces targeted funding for different community types within rural areas. Notably, it mandates that at least 10% of the grant funds awarded each fiscal year should benefit rural communities with populations fewer than 10,000 inhabitants. This strategic allocation aims to ensure that smaller communities are not overlooked in the grant distribution process. However, terms like "broad base of rural community types" could lead to ambiguity, making it challenging to determine the eligibility or prioritization of applicants. This lack of clarity could potentially impact the equitable distribution of funds, as the criteria might not be clearly understood by all stakeholders.
Removal of Industry Clusters Language
The bill removes prior references to "industry clusters" and instead calls for a "diverse set of industry bases" to be represented in grant funding decisions. While this change aims to broaden the scope of industries that can benefit from the grants, it could introduce confusion regarding the program's focus. Without more precise guidelines, stakeholders might find it difficult to align their projects with the program's goals, potentially leading to an uneven distribution of funds across intended sectors.
Overall, while S. 4342 presents a robust increase in financial support for rural innovation, the financial language and terminologies require careful implementation and oversight to fulfill its promises equitably and effectively across the diverse needs of rural America.
Issues
The authorization for a significant increase in appropriations from $10,000,000 per year for 2019-2024 to $50,000,000 per year for 2025-2029 (Section 2, subsection (f)) might be considered a potential area of wasteful spending if not properly justified, raising concerns about financial oversight and accountability.
The removal of 'industry clusters' from multiple sections (Section 2, subsections (a), (b), (d), and (e)) could lead to ambiguity about what specific economic areas or sectors the grant program is intended to support, potentially causing confusion among stakeholders about the program's goals and target areas.
The language specifying 'target a broad base of rural community types' (Section 2, subsection (b)(1)(B)(i)) is vague and may lead to challenges in determining eligibility or prioritization of grant recipients, impacting the effective implementation of the program.
The requirement for a 'diverse set of industry bases' to be represented (Section 2, subsection (b)(3)(A)) is vague and may lead to confusion or difficulty in implementation without clearer guidelines, which could hinder the equitable distribution of funds.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The section establishes that the official name for this piece of legislation is the “Rural Innovation Stronger Economy (RISE) Reauthorization Act of 2024.”
2. Rural Innovation Stronger Economy grant program reauthorization and expansion Read Opens in new tab
Summary AI
The Rural Innovation Stronger Economy grant program is being updated to focus more on helping smaller rural communities with populations under 20,000, and at least 10% of grants are to benefit areas with fewer than 10,000 people. The program will also broaden the types of industries it supports and increase funding from $10 million per year to $50 million per year for fiscal years 2025 to 2029.
Money References
- (a) In general.—Section 379I of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008w) is amended— (1) in subsection (a)— (A) in paragraph (1)— (i) in subparagraph (A)(i)— (I) by striking “the industry clusters that are objectively identified as”; and (II) by inserting “industries in the area served by the partnership” after “declining”; and (ii) in subparagraph (B)(ii)— (I) by striking subclause (I); and (II) by redesignating subclauses (II) through (IV) as subclauses (I) through (III), respectively; (B) by striking paragraph (2); and (C) by redesignating paragraphs (3) through (5) as paragraphs (2) through (4), respectively; (2) in subsection (b)— (A) in paragraph (1)— (i) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and indenting the clauses appropriately; (ii) in clause (ii) (as so redesignated), by striking “opportunities, networks, and industry clusters” and inserting “opportunities and networks”; (iii) by striking the paragraph designation and heading and all that follows through “The Secretary” in the matter preceding clause (i) (as so redesignated) and inserting the following: “(1) GRANT PROGRAM.— “(A) IN GENERAL.—The Secretary”; and (iv) by adding at the end the following: “(B) TARGETED COMMUNITY TYPES.—In carrying out the grant program under this paragraph, the Secretary shall— “(i) target a broad base of rural community types that will benefit from the program, with an emphasis on communities with a population of fewer than 20,000 inhabitants; and “(ii) of the total amount of grants awarded for each fiscal year, award not less than 10 percent to carry out activities that will benefit rural communities with a population of fewer than 10,000 inhabitants.”; and (B) in paragraph (3)— (i) in subparagraph (A)— (I) by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and indenting the subclauses appropriately; and (II) in subclause (II) (as so redesignated), by striking “industry cluster”; (ii) by striking subparagraph (C); (iii) in subparagraph (D), by striking “industry clusters,”; (iv) by redesignating subparagraphs (A), (B), (D), (E), and (F) as clauses (i), (ii), (iii), (iv), and (v), respectively, and indenting the clauses appropriately; and (v) in the matter preceding clause (i) (as so redesignated), by striking “shall consider—” and inserting the following: “shall— “(A) ensure that a diverse set of industry bases is represented; “(B) only select an eligible entity to receive a grant with the concurrence of the applicable State office of the rural development mission area; and “(C) take into consideration—”; (3) in subsection (d)(1)— (A) in subparagraph (A), by adding “and” after the semicolon at the end; and (B) in subparagraph (B)— (i) in clause (i), by striking “industry clusters,”; (ii) in clause (vii), by striking “small businesses in regional industry clusters, including”; (iii) in clause (ix), by striking “in the identified industry clusters”; and (iv) in clause (x), by striking “industry cluster”; (4) in subsection (e)(2)(B)— (A) in clause (viii)— (i) in subclause (I), by striking “industry cluster” and inserting “activities funded with the grant”; and (ii) in subclause (II), by striking “held by the industry cluster” and inserting “relating to those activities convened by relevant organizations”; (B) in clauses (xi) and (xii), by striking “industry cluster” each place it appears and inserting “participating regional”; and (C) in clause (xiii), by striking “the project activities” and inserting “activities funded with the grant”; and (5) by striking subsection (f) and inserting the following: “(f) Authorization of appropriations.—There are authorized to be appropriated to carry out this section— “(1) $10,000,000 for each of fiscal years 2019 through 2024; and “(2) $50,000,000 for each of fiscal years 2025 through 2029.”. (b) Conforming amendment.—Section 6306(h)(3)(B)(ii) of the Agriculture Improvement Act of 2018 (7 U.S.C. 2204b–3(h)(3)(B)(ii)) is amended, in the matter preceding subclause (I), by striking “section 379I(a)(4) of the Consolidated Farm and Rural Development Act” and inserting “section 379I(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008w(a))”. ---