Rural Partnership and Prosperity Act

Bill Summary: Rural Partnership and Prosperity Act (H.R. 6041)

Overview

The Rural Partnership and Prosperity Act is a legislative proposal designed to stimulate economic growth and infrastructure development in rural areas of the United States. The bill authorizes the Secretary of Agriculture to establish two distinct grant programs aimed at fostering public-private partnerships and providing technical expertise to resource-constrained rural communities. Additionally, it reorganizes the federal approach to rural coordination by transforming a previous council into a broader "Network."

Key Provisions

1. Rural Partnership Program Grants

This program provides multiyear grants (between 2 and 5 years) to coordinate investments from federal, nonprofit, and for-profit sectors.
* Eligible Applicants: Grants are awarded to partnerships of two or more entities, which may include:
* State political subdivisions (countities, municipalities).
* Nonprofit corporations or cooperatives with significant rural ties.
* For-profit entities with a significant rural presence.
* Institutions of higher education.
* Indian Tribes.
* Eligible Activities: Funds can be used for predevelopment planning, leveraging non-federal resources, creating public-private partnerships, and funding regional projects. Up to 50% of grant funds may be used for capital projects.
* Funding & Allocation:
* Funding is primarily allocated to States via a formula based on nonmetropolitan poverty and population.
* At least 5% of the total appropriation must be allocated to Indian Tribes.
* Applicants must typically provide a 25% non-federal match (cash or in-kind), though the Secretary may waive this for high-poverty areas or Tribal populations.

2. Rural Partnership Technical Assistance Grants

This is a competitive grant program (up to 5 years) administered at the national level to help rural organizations manage grants and plan development.
* Purpose: To assist with federal grant management, housing/economic development projects, and "placemaking" plans.
* Eligible Applicants: Qualified private or nonprofit intermediaries, including universities with community development programs.
* Requirement: Applicants must provide a 30% non-federal match, subject to potential waivers based on the need of the served area.

3. Establishment of the Rural Partners Network

The bill amends the Agriculture Improvement Act of 2018 to replace the "Council on Rural Community Innovation and Economic Development" with the Rural Partners Network.
* Expanded Scope: Adds several agencies to the network, including the FDIC, the Consumer Financial Protection Bureau, the Social Security Administration, and various regional commissions (Appalachian, Delta, Denali, etc.).
* Goals: The Network is tasked with reducing the administrative burden on rural communities, streamlining the federal application process, and improving cross-agency coordination.

Who is Affected?

• Rural Municipalities and Local Governments: Gain access to funding for strategic planning and infrastructure.
• Tribal Governments: Receive guaranteed minimum funding allocations (5%) and potential match waivers.
• Nonprofits and For-Profits: Can enter into partnerships to leverage federal funds for rural economic development.
• Federal Agencies: Must coordinate further under the Rural Partners Network to reduce duplication of effort.

Procedural and Financial Details

• Administration: The Secretary of Agriculture may retain up to 2% of allocated funds for program administration.
• Appropriations: The bill authorizes "such sums as are necessary" to carry out the programs, meaning funding would be determined during the annual appropriations process.
• Current Status: Introduced on November 12, 2025; currently referred to the House Committee on Agriculture.