NRECA, Rural Broadband Association support bill to help critical rural infrastructure

A bill to support rural communities and critical infrastructure providers in response to the COVID-19 pandemic has garnered support from the National Rural Electric Cooperative Association (NRECA) and NTCA, The Rural Broadband Association.

The bill — the Flexible Financing for Rural America Act — would allow electric cooperatives and small rural telecom providers to adjust the interest rate on existing loans from the U.S. Department of Agriculture’s Rural Utilities Service (RUS) loan programs.

It was introduced in the Senate by Sens. John Hoeven (R-ND), Tina Smith (D-MN), John Boozman (R-AR), and Kyrsten Sinema (D-AZ).

“America’s electric cooperatives face significant financial shortfalls due to the ongoing pandemic,” NRECA CEO Jim Matheson said. “Despite that, electric cooperatives are working to help their communities by working with co-op consumer-members on extended payment plans, accelerating cash back programs, and expanding broadband access. Economic development has been part of electric co-ops’ DNA for decades, and that element of community leadership will be critical as communities rebound from the public health emergency. This essential legislation will give co-ops the flexibility to manage financial shortfalls and focus on the long-term stability of the communities they serve.”

The bill will provide cooperatives with greater cash-flow flexibility to meet the needs of rural consumers in these challenging economic times.

“Hundreds of NTCA members have answered the call in committing to keep Americans connected in the most rural and remote parts of the country. These companies and cooperatives will, of course, do everything within their power to keep delivering on the promise of connectivity for the communities in which they live and serve,” NTCA CEO Shirley Bloomfield said.

U.S. Reps. Vicky Hartzler (R-MO) and Tom O’Halleran (D-AZ) introduced companion legislation in the House.

The National Rural Electric Cooperative Association is the national trade association representing nearly 900 local electric cooperatives. NTCA, The Rural Broadband Association, represents approximately 850 independent, community-based telecommunications companies.