Legislation, Top Story
Senate Stops Rural Spending Cut Bid
The U.S. Senate has batted down an attempt to cut $1 billion from the federal government’s budget for rural development.
Sen. Herb Kohl
The chamber voted 85-13 on Nov. 1 to defeat an amendment, offered by Sen. Tom Coburn, R-Okla., to a fiscal 2012 spending plan for the Agriculture Department and several other cabinet agencies.
NRECA was part of a coalition of rural organizations, including other electric cooperative and statewide associations that urged defeat of Coburn’s proposal. He had insisted that the spending duplicated other federal initiatives.
“We appreciate the efforts of those senators who continue to support investments in rural America and recognize the role it must play if our economy is to be successful,” said NRECA CEO Glenn English.
The Coburn measure would have slashed support for USDA Rural Development from $2.42 billion to $1.42 billion, a reduction of about 40 percent for programs such as the Rural Utilities Service and the Rural Economic Development Loan and Grant program.
Sen. Herb Kohl, D-Wis., chairman of the Agriculture Appropriations Subcommittee, opposed Coburn’s amendment and strongly endorsed the role of rural development support in job creation.
“These programs help launch and grow small businesses. They help rural communities build water and sewer lines which, of course, are essential to economic development. They help improve small town fire stations and health care clinics. They support rural housing,” Kohl said.
Sen. Roy Blunt, R-Mo., the ranking member of the Agriculture Appropriations Subcommittee, also opposed the amendment. “With the nation focused on private sector job creation and looking for policies that will help spur economic development, I’m pleased that the Senate passed this bill to effectively fund America’s agriculture programs,” he said.
Christine N. Heggem, NRECA senior principal, legislative affairs, said the Coburn amendment did not spell out a specific reduction for the RUS Electric Loan Program. “However, it’s likely that a cut of that magnitude would lead to decreased staffing levels, which could make it more difficult for RUS to process and review loan applications in a timely manner,” she said.
After defeating the Coburn amendment, the Senate passed the multi-agency spending package 69-30. The matter is not over―the Senate and House still have to work out the differences between their appropriations bills.
Tags: 112th Congress, Legislation, Rural Economic Development, Rural Utilities Service