Rural Development Modernization Act

(a) Increase in population thresholds under certain programs

(1) Broadband, telemedicine, and distance learning

(A) In general. Section 601(b)(3)(A)(ii) of the Rural Electrification Act of 1936 (7 U.S.C. 950bb(b)(3)(A)(ii)) is amended by striking 20,000 inhabitants and inserting 25,000 inhabitants (excluding populations described in subparagraphs (F) and (G) of such section).

(B) Ratio for allocation. Section 601(j)(2)(B) of such Act (7 U.S.C. 950bb(j)(2)(B)) is amended by striking 2,500 each place it appears and inserting 25,000.

(2) Telephone service loans. Section 203(b) of the Rural Electrification Act of 1936 (7 U.S.C. 924(b)) is amended by striking 5,000 inhabitants and inserting 25,000 inhabitants (excluding populations described in subparagraphs (F) and (G) of section 343(a)(13) of the Consolidated Farm and Rural Development Act).

(3) Reservation applicable to loan guarantees for water, wastewater, and essential community facilities loans. Section 306(a)(24)(D)(ii) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)(24)(D)(ii)) is amended by striking 20,000 and inserting 25,000.

(4) Emergency and imminent community water assistance grants. Section 306A(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926A(e)) is amended—

(A) in paragraph (1)(A), by striking 10,000 and inserting 25,000; and

(B) in paragraph (2), by striking 3,000 and inserting 25,000.

(5) Rural housing. Title V of the Housing Act of 1949 is amended—

(A) in section 520 (42 U.S.C. 1490)—

(i) in the first sentence—

(I) in clause (1), by striking 2,500 and inserting 25,000;

(II) in clause (2)—

(aa) by striking 2,500 and inserting 25,000; and

(bb) by striking 10,000 and inserting 25,000; and

(III) in clause (3)—

(aa) by striking 10,000 and inserting 25,000; and

(bb) by striking 20,000 and inserting 25,000; and

(ii) by striking the last sentence and inserting the following: In determining whether an area is rural or a rural area, the Secretary shall disregard the populations described in subparagraphs (F) and (G) of section 343(a)(13) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(13)).; and

(B) in section 533(d)(3)(C) (42 U.S.C. 1490m(d)(3)(C)), by striking 10,000 and inserting 25,000.

(b) Elimination of cap on military base population exclusion. Section 343(a)(13)(I) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(13)(I)) is amended—

(1) in the subparagraph heading, by striking Limited exclusion and inserting Exclusion; and

(2) by striking The first 1,500 and inserting Populations of.

(c) Elimination of lower population thresholds under water and waste, and community facilities programs

(1) In general. Section 343(a)(13) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(13)) is amended by striking subparagraphs (B) and (C) and redesignating subparagraphs (D) through (I) as subparagraphs (B) through (G), respectively.

(2) Conforming amendments. Section 343(a)(13) of such Act (7 U.S.C. 1991(a)(13)) is amended—

(A) in subparagraph (A), by striking (I) and inserting (G);

(B) in subparagraph (D)(i), by striking (F) each place it appears and inserting (D); and

(C) in subparagraph (F), by striking clause (ii) and inserting the following:

(d) Exclusion of incarcerated and military base populations in determining whether part of an area is rural in character

(1) In general. Section 343(a)(13)(D)(iii) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(13)(D)(iii)) is amended by redesignating subclauses (III) through (VII) as subclauses (IV) through (VIII), respectively, and inserting after subclause (II) the following:

(2) Conforming amendment. Section 343(a)(13)(D)(iii)(V) of such Act (7 U.S.C. 1991(a)(13)(D)(iii)(V)) is amended by striking (IV) and inserting (V).