Strengthening Rural Cooperatives and Communities Act

This bill reauthorizes through FY2029 and modifies the Rural Cooperative Development Grant (RCDG) Program. This Department of Agriculture (USDA) program provides grants to nonprofit institutions to help individuals and businesses start, expand, or improve rural cooperatives and other mutually-owned businesses through Rural Cooperative Development Centers.

USDA must give preference to grants that commit to providing technical assistance and other services to socially vulnerable, underserved, or distressed communities. Under current law, USDA must give preference to underserved and economically distressed areas in rural areas.

In addition, USDA may give an additional preference to applications that commit to providing a 25% matching contribution for the center with private funds and in-kind contributions. Specifically, USDA may award the maximum points in application scoring criteria to applicants that satisfy this requirement.

Under the bill, cooperative development includes activities (e.g., outreach, education, training, and technical assistance) to support the startup, expansion, or ongoing sustainability of new and existing cooperatives. Current law does not define cooperative development.

Summary by the Congressional Research Service.